ECON 450 - Introduction to Financial Economics

Units: 3
Analysis of the role of credit markets, public finance, and central banking in the aggregate economy. Starting from the inter-temporal consumption-saving model, this course illustrates several topics in financial economics, with an emphasis on the macroeconomic aspects of finance.

Prerequisites: ECON 200 and ECON 205; and either, ECON 300 or ECON 380.
Possible Instructional Methods: On-ground.
Grading: A-F grading only.
Course Typically Offered: Fall Alternate Years

Student Learning Outcomes - Upon successful completion of this course students will be able to:

Upon completion of this course, students will be able to;
Explain the basics of microeconomic models of inter-temporal decision making;
Apply insights from information economics to study financial crises and failures of financial markets;
Analyze the impact of borrowing constraints and collateral constraints both on consumption-saving decisions and in the aggregate economy;
Explain the significance of public finance programs and regulations, and their consequences on interest rates, credit supply, and welfare.