Course overview
This course provides an introduction to the institutions, markets and securities that form the basis of modern financial and monetary systems. Australian as well as international economies and their financial systems will be considered with reference to current financial news and current affairs. This course also introduces some of the main concepts and methods used in financial and monetary economics and provides a sound basis for students progressing to the study of monetary economics, financial economics and international finance at higher levels within the University. At the same time, it is a valuable, self contained and up-to-date overview of international financial markets and institutions for non-specialists.
Course learning outcomes
- Identify and explain the main functions of the principal financial markets and institutions in a typical modern financial system
- Apply balance sheet principles to describe and analyse the business of banking, the financial relationships which exist between different financial institutions, and those between the financial system and the rest of the economy
- Identify the objectives of monetary policy, and to describe both orthodox and unconventional approaches used around the world to monetary policy implementation
- Describe the three markets- the money market, the bond market and the equities market- with respect to their respective time and risk profiles
- Understand the functional differences between the money market, the futures market, the bond market, the equities market, the derivatives market and the foreign exchange market
- Be able to discuss the relationship amongst macroeconomic aggregates and the various markets
- Describe the functional relationship between financial markets and changes in social welfare
- Understand the nature of signals and messaging within financial markets