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 of Financial Markets
Code ECON706
Coordinator Dr R Forster
Economics
Robert.Forster@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2025-26 Level 7 FHEQ Second Semester 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 20

 5

         25
Timetable (if known)              
Private Study 125
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Closed book exam There is a resit opportunity Standard UoL penalty applies for late submission This is an anonymous assessment  2    60       
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Individual reflective report There is a resit opportunity Standard UoL penalty applies for late submission This is not an anonymous assessment  0    10       
Individual case study There is a resit opportunity Standard UoL penalty applies for late submission This is an anonymous assessment  0    20       
Group presentation There is a resit opportunity Standard UoL penalty applies for late submission This is not an anonymous assessment  20    10       

Aims

This module aims to:

Provide students with a thorough understanding of financial markets and recent advances in this area;

Develop students’ analytical skills and critical thinking which includes the use of state-of-the art techniques and theories;

Improve employability of students in their preparation for the job market and future career path.

Enable students to gain the confidence to describe their work process and their results to people through a written report and presentation.

Learning Outcomes

(LO1) Students will be able to demonstrate a critical awareness and in-depth understanding of important concepts/theories in the area of financial economics.

(LO2) Students will have a critical understanding of the function of financial markets and their challenges.

(LO3) Students will be able to critically test, evaluate and challenge models/theories with the help of state-of-the-art analytical methods.

(LO4) Students will be able to use their newly developed analytical skills by applying financial models to real world challenges.

(LO5) Students will be able to effectively apply economic and statistical frameworks in the area of financial economics.

(LO6) Students will be able to analyse real world financial problems and present their findings to others.

(LO7) Students will be able to summarise analyses in written reports.

(S1) Numeracy
Through exercises and during the course of the module, students will develop the ability to solve models and apply analytical techniques, enhancing their numeracy skills.

(S2) Problem Solving
Engaging with real-life problems in class discussions and assignments, students critically evaluate complex financial issues, strengthening their problem-solving skills.

(S3) International awareness
The module’s global focus exposes students to the international dimensions of financial markets, preparing them for a diverse financial landscape.

(S4) Lifelong learning
Through continuous learning activities and research assignments, students enhance their skills in organising information and summarising it concisely, thereby promoting a lifelong learning approach.

(S5) Organisation skills
Students will learn to locate, select, and analyse relevant information, thereby assessing the state of the financial economy through various analytical methods and tools.

(S6) Verbal and written communication
Preparing for assessments like group presentations and written case studies allows students to refine their verbal and written communication skills.

(S7) Teamwork
Collaborating on projects and presentations, students enhance their teamwork capabilities, demonstrating the value of collective effort in achieving goals.

Teaching and Learning Strategies

20 hours lectures
There will be one 2-hour lecture per week for 10 weeks.

5 hours seminars
There will be one 1-hour tutorial every other week.

125 hours self-directed learning
Students will be assigned readings and other materials to prepare them for lectures and as review. They will also study and revise the material on their own.

Syllabus
 

The module will typically cover the following topics:

Intermediation and financial markets;

Financial assets and asset pricing;

Functioning of capital markets and corporate finance;

Efficiency and fragility of financial markets;

The impact of policy decisions;

Models and theories of financial economics and their empirical findings.

Students will be provided with a reading list and will be able to retrieve all information from Canvas. Academic papers will be made available via the module’s Canvas homepage.

Recommended Texts
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.