Financial Economics

As Taught Spring Semester 2011



Dr S Bougheas, School of Economics, University of Nottingham

Module Title: Financial Economics

Module Code: L14048

Total Credits: 15

Level of Study: Post Graduate

Offering School: School of Economics

Frequency of Class: 2 x 1 hour lecture per week

Targeted Students: MSc students in the School of Economics

The content presented here provides information for prospective students on module L14048 – ‘Financial Economics’, offered by the School of Economics, University of Nottingham. The module convenor Dr S Bougheas.

During the last two decades, the economic theory of financial markets has witnessed a dramatic process of change. Before that, researchers in this area had concentrated either in investment and portfolio issues, especially, focusing on asset pricing techniques (subjects traditionally taught in finance departments) or in monetary policy issues (a subject usually taught in economics departments). However, when the asymmetric information paradigm emerged, it opened new avenues for research that challenged such fundamental questions as why financial markets exist and why there is such a variety of financial instruments. In addition, it offered a framework where issues related to financial market failures and, consequently, banking regulations can be addressed. The aim of this module is to provide a guide to this new area of financial economics.

For a list of topics taught in this module, proceed to ‘Module Structure’.