ECON5506 The Economics of Financial Markets

Credit
6 points
Offering
(see Timetable)

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

AvailabilityLocationMode
Semester 1UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Semester 1UWA (Perth)Online timetabled 100% Online Unit. NO campus face-to-face attendance is required to complete this unit. All study requirements are online only. Unit includes some synchronous components, with a requirement for students to participate online at specific times.
Semester 2UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Semester 2UWA (Perth)Online timetabled 100% Online Unit. NO campus face-to-face attendance is required to complete this unit. All study requirements are online only. Unit includes some synchronous components, with a requirement for students to participate online at specific times.
Content
This unit encourages participants to explore the behavioural links between financial markets, economic policy and economic performance at an advanced level. The unit focuses on the economics of financial market behaviour and the role of financial markets in macroeconomic performance.

Topics include an overview of financial market structure and behaviour, risk and the pricing of financial instruments, financial market efficiency and financial market regulation.
Outcomes
Students are able to (1) demonstrate understanding of the economic behaviour behind the markets for assets, as distinct from products, the structure of modern financial markets and their regulation, including the markets for some key financial instruments; (2) analyse the effects of financial shocks on economic behaviour and assess the implications of responses in the form of both monetary and fiscal policy; (3) demonstrate understanding of the genesis of economic cycles that are most often triggered by financial shocks, the most prominent of which in recent decades are the Asian financial crisis of 1997 and the international financial crisis of 2008, along with the consequences of the policy responses which followed; and (4) carry out elemental analysis of a more general range of financial and real shocks and their effects on financial and economic performance.
Assessment
Indicative assessments in this unit are as follows: (1) mid-semester test; (2) hand in workshop exercise; and (3) oral presentations. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s)
Professor Rod Tyers
Unit rules
Prerequisites:
for Master of Commerce and Master of Economics and Master of Public Policy students: ECON5541 Economics for Business: Applications and Policy or ECON5516 The Economics of Public Policy; for Master of Applied Finance students: FINA5533 Finance Essentials (or equivalent) and FINA5632 Investments
Contact hours
lectures/seminars/workshops: up to 3 hours per week
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
  • All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit, one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook one week prior the commencement of study. Reading lists and essential textbooks are subject to change each semester. Information on essential textbooks will also be made available on the Essential Textbooks. This website is updated regularly in the lead up to semester so content may change. It is recommended that students purchase essential textbooks for convenience due to the frequency with which they will be required during the unit. A limited number of textbooks will be made available from the Library in print and will also be made available online wherever possible. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus.