Economics of Finance

This course applies the economic approach to understanding financial markets, institutions, and business behavior. Students will learn core economic theories relevant to finance and apply them to practical problems. Topics include consumption and exchange, decision-making under uncertainty, asset pricing, market efficiency, and the limits of rationality. The course emphasizes conceptual understanding and economic intuition over technical rigor. Designed for students interested in the foundational principles underlying finance, it differs from International Capital Markets by focusing on theory over market structure and from Corporate Finance by approaching similar topics from an economic rather than a corporate perspective. While mathematical fluency helps, the course prioritizes clarity of thought over computation. Students should have prior exposure to microeconomics and basic algebra.