ULMS Electronic Module Catalogue |
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module. |
Title | Economics in Financial Markets | ||
Code | MGTK758 | ||
Coordinator |
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Year | CATS Level | Semester | CATS Value |
Session 2024-25 | Level 7 FHEQ | Whole Session | 15 |
Pre-requisites before taking this module (other modules and/or general educational/academic requirements): |
Modules for which this module is a pre-requisite: |
Programme(s) (including Year of Study) to which this module is available on a required basis: |
Programme(s) (including Year of Study) to which this module is available on an optional basis: |
Teaching Schedule |
Lectures | Seminars | Tutorials | Lab Practicals | Fieldwork Placement | Other | TOTAL | |
Study Hours |
24 4 |
28 | |||||
Timetable (if known) | |||||||
Private Study | 122 | ||||||
TOTAL HOURS | 150 |
Assessment |
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EXAM | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
CONTINUOUS | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
Group video presentation Reassessment Opportunity: individual assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: No | 10 | 25 | ||||
Individual essay Reassessment Opportunity: new assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes | 0 | 75 |
Aims |
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The module aims to: Introduce students to the key principles of economic analysis; Develop students’ understanding of the microeconomic foundations of demand and supply analysis, theory of the firm, and market structures; Consolidate students’ knowledge of the key macroeconomic processes and indicators relevant to policymaking and to financial markets; Provide a conceptual and practical understanding of monetary, fiscal and international trade policies; Enable students to analyse the effects of economic factors and policymakers’ interventions on financial markets; Develop students’ research and study skills. |
Learning Outcomes |
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(LE1) Flexible and adaptable. |
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(LE2) A team player. |
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(LE3) Internationally aware. |
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(LO1) Students will be able to demonstrate an understanding of the principles of microeconomics and macroeconomics and of their application in investment management. |
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(LO2) Students will be able to demonstrate an ability to identify, evaluate and critically appraise the economic factors, tools and environmental influences affecting financial markets. |
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(LO3) Students will be able to demonstrate an ability to explain the principles of demand and supply, define a firm’s optimal use of factors of production, and distinguish between various types of markets. |
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(LO4) Students will be able to demonstrate an understanding of models of aggregate demand and short-term aggregate supply, and their relation with gross domestic product and the business cycle. |
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(LO5) Students will be able to demonstrate familiarity with the tools and policy objectives of fiscal and monetary authorities. |
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(LO6) Students will be able to demonstrate an ability to explain the determinants of international trade, international capital flows, and the roles of organisations such as the World Bank, the International Monetary Fund, and the World Trade Organization. |
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(LO7) Students will be able to demonstrate an understanding of the mechanics of foreign exchange markets and the relationship between inflation, interest rates, and currency exchange rates. |
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(LO8) Students will be able to demonstrate knowledge of the determinants of long-run economic growth. |
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(LO9) Students will be able to demonstrate an ability to evaluate the effects of regulations on specific industries, companies, and securities. |
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(LRE1) A problem solver. |
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(LRE2) Commercially aware. |
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(LRE3) Organised and able to work under pressure. |
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(LRE4) An excellent verbal and written communicator. |
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(LRE5) IT literate. |
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(LRE6) A lifelong learner. |
Teaching and Learning Strategies |
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The module will be delivered over an 8-week period, primarily through a series of weekly e-lectures. These will be supported by individual online tasks such as media clips and discussion boards. Discussion boards will be used to develop understanding and help students apply their learning. These will be moderated by the module instructor. Students will also be directed to key academic and practitioner readings to further develop their learning. Unscheduled directed student hours: 24 hours Students will undertake 4 hours of synchronous activity over the 8 weeks in order to consolidate their knowledge and appreciate the practical applications of the subject matter. This will take place through group and individual sessions which will be moderated b y the module instructor. Scheduled directed student hours: 4 hours Self-directed learning: 122 hours |
Syllabus |
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Demand and supply analysis: The module first discusses the differences between micro- and macroeconomics, and between normative and positive economics. It then introduces the key concepts underpinning to demand and supply analysis, such as demand elasticity, marginal costing, break-even analysis, and economies of scale. Theory of the firm and market structures: Students will examine four fundamental market structures (perfect competition, monopolistic competition, oligopoly, monopoly), as well as the unique behaviours of demand and supply forces and the determinants of optimal price and output under each respective market structure. Measuring national income, understanding business cycles: This topic introduces students to the key variables used in macroeconomic models (aggregate demand, aggregate supply, output, unemployment, inflation) and how they are measured, as well as their behaviour over the expansion-recession business cycle. Particular attention is paid to deri vations and applications of the IS-LM model, the short-run aggregate supply model, and the Phillips curve model. Monetary and fiscal policies: This area focuses on the domestic policy objectives of monetary and fiscal authorities, the policy tools at their disposal, and the channels of transmission between such policies and the real economy. Students will also examine the monetary and fiscal policy responses to the 2008 financial crisis and the 2020 economic shock brought by the Covid-19 pandemic. International trade and capital flows: The module introduces various models of international trade (the Ricardian and the Heckscher-Ohlin models) and considers the effects of trade policies such as capital restrictions, import quotas, and tariffs on firms and consumers. Students will also examine the arguments used in the free trade vs trade protectionism debate. Currency exchange rates: This topic outlines the properties of various exchange rate regimes and discusses the eq uilibrium relationships between spot exchange rates, forward exchange rates, and interest rates. Key models such as the Mundell-Fleming model and the purchasing power parity model will be introduced. Economic growth and development: Students will be introduced to the Mathusian and Solow models, which link an economy’s long-term growth with its endowment of natural resources, physical capital, human capital, and technological development. Students will be encouraged to discuss the factors affecting growth in developed and developing economies. Effects of government regulation: This area centres on regulatory policymakers’ interventions in financial markets, as well as the policies and the tools that they use. Particular attention is paid to the economic rationale for introducing such regulations and their effects on specific industries, companies, and securities. The reform of regulatory frameworks in the aftermath of the 2008 crisis serve as the basis of discu ssion of costs, benefits, and externalities generated by policymakers interventions. |
Recommended Texts |
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Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module. |