Financial Economics

Code:

2ECON07

Acronym:

EFIN

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2021/2022 - 2S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ME	2	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Portuguese and english

Objectives

The objectives of the Financial Economics course are to provide students with a global view of the main contributions of economics to the understanding of the financial system and to introduce students to the techniques of theoretical and empirical analyis of financial markets and financial assets.

Learning outcomes and competences

Students should be able to use and interpret correctly the basic financial economics concepts and principles, and to apply the methodologies of economics to financial markets and institutions.

Working method

Presencial

Program

1. Financial system

Function and economic relevance

Organization of financial system

Principles of financial intermediation

Types of financial intermediaries

Financial crises

 

1. Money markets

Demand and supply of money

Monetary policy

Monetary market interest rate and yield curve

 

1. Foreign Exchange Markets

Currency market and exchange rates

Exchange rate policy

Balance of payment and the international equilibrium

The role of the IMF

 

1. Money markets and foreign exchange market

Demand and supply of money

Monetary policy

Monetary market interest rate and yield curve

Currency market and exchange rates

Exchange rate policy

Balance of payment and the international equilibrium

The role of the IMF

 

1. Financial intermediaries’ management

Management of banks and other financial institutions principles

Risk and risk management of banks

Securitization and new trends

 

1. Capital markets

Bond and debt markets

Stock markets

Futures and options markets

Portfolio management theory

Asset pricing models

 

1. Behavioral finance

Efficient market hypothesis

EMH anomalies

Asset pricing equilibrium and behavioural finance

 

1. Regulation of the financial system

Regulation of financial system

Mandatory literature

Frederick S. Mishkin; Financial markets and institutions. ISBN: 978-1-292-06048-4
Zvi Bodie, Alex Kane e Alan Marcus ; Investments, 10th ed., McGraw-Hill Education, 2013. ISBN: 978-0077861674

Complementary Bibliography

Pires, Cesaltina; Mercados e Investimentos Financeiros, 3ª ed, Escolar Editora, 2011. ISBN: 9789725923122
Fabozzi Modigliani Jones; Foundations of financial markets and institutions. ISBN: 978-1-29202-177-5
Abel Luís da Costa Fernandes; Mercados, produtos e valorimetria de activos financeiros. ISBN: 978-972-40-7418-4
Kent Matthews; The^economics of banking. ISBN: 978-0-470-51964-6

Teaching methods and learning activities

The classes mix theory and practice, with the presentation of concepts, theories and models being followed by examples of their application to real financial system cases. The classes will be interactive, with a strong participation of students in the discussion of the proposed applications.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Teste	85,00
Participação presencial	15,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	160,50
Frequência das aulas	42,00
Total:	202,50

Eligibility for exams

All enrolled students may take the final exam.

Calculation formula of final grade

The final classification of the distributed evaluation corresponds to the quality and quantity of the participation (15%) and the marks obtained in the two tests (the weight of each is 42.5%). The second test is in the same date of the final exam (normal season). The participation component may include the presentation or discussion of short papers.

Examinations or Special Assignments

These tests may be complemented by an individual oral discussion, by request of the teacher in charge, to clarify possible doubts in the answers.