Financial Economics

This course examines the principles of financial economics and their application to contemporary public policy, financial markets, and global economic stability. Students develop an understanding of asset valuation, portfolio theory, fixed income markets, financial intermediation, and systemic risk before applying these concepts to banking crises, international capital flows, exchange rate dynamics, and financial regulation.

The course explores the interaction between financial markets and policymaking through case studies of major financial disruptions, including banking crises, liquidity shocks, sovereign debt episodes, and market instability. It also examines emerging issues such as central bank digital currencies, stablecoins, algorithmic trading, and contingent claims analysis. Throughout the semester, students integrate economic theory with empirical evidence and policy applications to evaluate financial risks and regulatory responses in an increasingly interconnected global economy.