Dr N Olekalns and Dr P Stemp 316-201 Intermediate Macro-economics, 316-202 Intermediate Microeconomics and either 316-205 Introductory Econometrics or 316-206 Quantitative Methods 2. First semester Two 1-hour lectures and a 1-hour tutorial per week Students should emerge from the course with an understanding of:

• how economic theory applies to financil markets;
• available financial statistics;
• how economic theory imposes testable restrictions on financial data;
• the main empirical results which have been established for financial markets;
• some broad economic policy issues associated with financial markets.

The course is a combination of principle and practice: it provides an overview of the economic principles governing financial markets; then provides insights into some important empirical and practical issues concerning the operation of financial markets; and concludes with a discussion of some practical issues associated with Australian financial markets. Class assignment(s) totalling approximately 2,000 words (20%) and one 2-hour examination (80%). Juttner D J Financial Markets Interest Rates and Monetary Economics 3rd edition, Longman Cheshire 1994