Finance and Economics

Finance plays an important role in everyone's decisions, allowing individuals and companies to take informed decisions on how to use money and plan for the future. This module covers the building blocks of finance that are required to make financial decisions, inside and outside the firm. Throughout the module, students will get a good understanding of financial markets and securities, the risk-return relationship, and how firms make financing decisions.

Strong quantitative skills are the cornerstone of a modern finance professional. This module will enable students to understand the key concepts and methodologies in quantitative finance and econometrics, and to develop the quantitative skills required by employers in the finance sector. Students will learn how to discuss basic statistics, estimate financial models, and evaluate the relationship between financial variables.

Consumers and firms interact in markets, motivated by their self-interests. Yet, remarkably, these selfish interactions result in efficient market outcomes, clearing markets and balancing supply and demand. This raises the question: is there an 'invisible hand' guiding them toward these desirable outcomes? We will provide you with the building blocks of graduate-level microeconomics. We will cover the standard economic models of individual decision-making under different environments, models of consumer behaviour and producer behaviour under perfect competition, the Arrow-Debreu general equilibrium model, and the two fundamental welfare theorems. At the end of the module, you will be able to analyse decision-making, derive individual and market demand curves, the interplay among economic agents in markets, and explain the concept of market equilibrium and its welfare properties.

Are you interested in the global financial markets? Do you want to know what drives a country’s exchange rate and what determines an open economy’s current account position? This module is designed to introduce you to the main theoretical and empirical models of international financial relations in an open-economy context. You will find out about the most widely debated topics in international finance, such as exchange rates, capital flows, financial crises, current account and debt dynamics. This module will provide you with the economic foundations for a full understanding of these debates from a rigorous point of view. Working on the areas of financial economics and development (be it in private or public institutions) requires a solid knowledge of the topics studied in this module. We will focus not only on the analytical side of the stories but also on their empirical relevance. You will learn the strong foundations of the theory and empirics of international macroeconomics and finance and will analyse the impact of international monetary flows on national economies.

Gain insight into the major current issues and debates in the financial world. This module explores contemporary challenges and opportunities in finance. Students will gain a deep understanding of real-world issues in various areas of finance and how these are expected to shape future developments.

Corporate finance is concerned with the efficient management of financial resources for organisations. Managers are concerned about provision of resources (capital funding decisions) and allocation of scarce resources (investment decisions). What factors do they consider to decide how to fund their operations and where to invest? In this module, you will address the underlying financial economics theories and concepts that will assist managers in running sustainable businesses. You will develop analytical and problem-solving skills required to advise managers on investment opportunities, capital structure decisions, dividend policies, and mergers and acquisitions activities.

How do investors construct the best portfolio, and why is the portfolio the best for the investor? Why do some assets have higher returns than others? This is a classic module on advanced financial economics that provides the technical foundation of economic analysis of portfolio problems and asset pricing. The module covers key economic principles, such as discounting, diversification, expected utility, and no-arbitrage, and discusses each asset class, such as bonds, equities, and their derivatives (instruments), emphasizing the general idea behind them. Although different types of assets require different methods of valuations and risk control, the basic principles are common to all asset classes. The economic analysis of capital market instruments provides a solid platform for understanding, interpreting, and developing analytical models of the dynamics of financial markets and making informed decisions on their basis. The foundations are central for careers among financial market actors as well as at national or international institutions that oversee and regulate financial market activity.

What are the key principles and tools used by successful investors? This module will help students develop the necessary skills to make core investment management decisions. Students will get an in-depth understanding of the tools used by investment managers to construct and manage portfolios, as well as to evaluate portfolio performance.

In today's data-driven finance sector, proficiency in programming has become essential for finance professionals. This module is designed to bring students a comprehensive, informative, and in-depth understanding of the practice of programming in finance and trading. The module will cover hands-on themes such as automatic trading strategies, backtesting, and applications of AI in trading.

Economies worldwide are confronted with severe environmental problems. How can we apply environmental economics to help design, implement, and evaluate environmental policies in developed and developing economies? We will discuss the properties of economic growth models with environmental elements and their implications for long-run sustainable development. Then you will explore environmental valuation techniques and how these can be incorporated into economic decision-making processes to contribute to sustainable economic growth and development. You will gain knowledge of the key non-market valuation techniques that are used to monetarily value environmental goods and services. You will be equipped to contribute to improving the protection and management of natural resources and the wider environment, with career opportunities in national and local government, environmental regulation, environmental consultancy, NGOs, and research organisations.

Sustainability has never been more relevant in the finance industry as it is today. The aim of this module is to provide a comprehensive insight into the core principles of sustainable finance policies and investments. Students will have the opportunity to develop their knowledge of the financial implications of climate change, sustainable investment strategies, ESG investing, and sustainability-related financial instruments.

Financial managers have a duty to consider the ethical, societal, and environmental implications of their decisions. This module explores the delicate balance between shareholder interests and the broader responsibilities of corporations to their stakeholders. It analyses the principles and practices of effective corporate governance leading to ethical decision-making. By analysing real-world cases, the module equips students with the skills to navigate the ethical complexities of the modern economy.

FinTech has completely transformed the financial landscape, and it is having an increasing impact on financial markets. This module aims to equip students with knowledge of FinTech applications and how disruptive innovations are shaping the financial system. Students will gain a deep understanding of FinTech networks, blockchain platforms, and the financial implications of artificial intelligence and machine learning.

Money and credit perform a range of crucial functions in market economies. This module studies the microeconomic foundations of money and credit and the roles played by money and credit markets in contributing to macroeconomic growth, fluctuations, and crises. Throughout the module, we also consider the roles of government institutions, including central banks and financial regulators, within modern markets for money and credit. The module makes use of theoretical models to aid understanding and analyse policy. These models are motivated by and tested against historical and contemporary evidence. We explore and compare a variety of frameworks for organising monetary policy and the particular challenges facing modern central banks in how they implement monetary policy today. We understand the microeconomic foundations of banking and how these should influence financial regulation, examining the linkages between the private banking sector, central banks, and monetary policy throughout the module.

Effectively assessing and managing risk is essential for corporate survival and growth. The risk management module provides a comprehensive overview of effective oversight and value generation principles, focusing on financial risk dynamics. This module rigorously examines advancements in risk governance, regulatory frameworks, and industry risk management practices, focusing on in-depth evaluations of financial risk. By giving students a detailed understanding of financial risk types through real-world examples, they emerge with specialised insights into managing these financial risks in a professional context. The module empowers students to explain complex risk management concepts, think critically in uncertain situations, and approach risk-related problems systematically.