ECON3023 - Economics of Financial Markets

Term 2


To provide students with a thorough understanding of the functioning of financial markets. The module is intended for motivated students who are interested in developing an analytical understanding of financial economics. It will cover crucial topics such as the role of markets and institutions as providers of liquidity, the reasons for price volatility in financial markets, financial fragility, different types of market microstructure and informational efficiency of financial markets.


After completing the course, students should be able to understand deeply the process of price formation in different markets, trading activity, volatility of asset prices, problems of asymmetric information in markets, and their implications on booms and crises.

Taught by:
Antonio Guarino
Assessment: 20 hours of lectures and 4 compulsory tutorial classes with accompanying exercises. Teaching is based on problem solving. There will be a 2-hour unseen written examination in Term 3.
Suitable for:
Final year Economics (L100 & L101), Econ/Stats(LG13), Econ/Geog(LL17), Phil/Econ(VL51) and ESPS specialist students.
Prerequisites: ECON2001: Microeconomics (or equivalent) must have been taken previously. Students should also possess a working knowledge of calculus and probability.
Maximum module enrolments: 150
Module Evaluation (Previous year): ECON3023
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