Teaching Responsibility
LJMU Schools involved in Delivery:
Liverpool Business School
Learning Methods
Lecture
Module Offerings
7003LBSIF-JAN-MTP
Aims
This module provides students with a critical appreciation of the full range of economic concepts, theories and models relating to financial markets, instruments, risks and decisions.
Learning Outcomes
1.
Critically evaluate the strengths and weaknesses (limitations) of economists’ theories of finance.
2.
Compare and contrast alternative theories and approaches to financial economics.
3.
Critically evaluate recent and relevant research findings.
4.
Develop financial models, and plan a methodology to test models.
Module Content
Outline Syllabus:Financial developments and the emergence of global finance.
Economic concepts of consumption, saving and investment.
Economists’ methods of analysis and use of theories.
Economics of savings and the demand and supply of liquidity.
Time value of money, discounted cash flow and Quantity theory of money.
Keynes’ ideas on liquidity, interest rates and risk.
Agency theory and Efficient Market Hypothesis.
Comparing gearing to equity, the contribution of Modigliani and Miller.
Risk, market pricing of risk, capital market line and CAPM.
Testing a hypothesis drawn from financial economics.
Political economy of finance, trade cycle, instability and inequality.
Module Overview:
This module provides students with a critical appreciation of economic concepts, theories and models relating to financial markets, instruments, risks and decisions.
This module provides students with a critical appreciation of economic concepts, theories and models relating to financial markets, instruments, risks and decisions.
Additional Information:This is a research driven module, responding to the need as to how economics impacts on financial markets and institutions.