Economics

This course examines how financial markets function and the financial instruments traded in financial markets. Topics include: money market; stock market; foreign exchange market; derivatives market.

This course is part of the Laurea Magistrale program and is intended for advanced level students. Enrolment is by consent of the instructor. At the end of the course the student has a sound knowledge of the financial products traded in the market, the differences among them, and the reasons why they were introduced in the market. The products range from standard bonds and stocks to derivatives and structured finance products. The student examines the main agents trading in the market, as fund raisers or investors, as well as financial intermediaries. The course starts by illustrating the role that financial markets play in the economy. Students are introduced to the key finance concepts of time value of money and no-arbitrage valuation. These concepts are applied to the valuation of two asset classes: fixed-income securities and financial derivatives.

The course teaches risk management practices for students aiming to advance their careers in the competitive world of global finance, in fields such as asset management, hedge funds, investment analysis, or risk management.

This course provides an introduction to the concepts that underlie modern economic analysis. The course begins with the concept of opportunity cost, proceeding to optimal decision-making at the level of an individual consumer. Similar analysis describe the optimal behavior of an individual firm, distinguishing competitive and non-competitive market structures. The theoretical coverage is supplemented with real-life examples, including a visit to one of the London's markets (e.g. London Metal Exchange) where students can observe a live application of the theoretical concepts.

The course provides an introduction to international financial markets. It includes a study of the rules and functions of international banks and financial markets in the world economy. It examines the relationships and risks of multinational firms, decisions financial managers face in a global volatile environment, and international finance activities of countries around the world. Topics include balance of payments, exchange rate regimes, foreign exchange market, exchange rate parity conditions, derivatives, hedging strategies, and managing transaction and economic exposure. 

The problem facing less developed countries are among the greatest challenges facing the world today. This course focuses on the diverse structures and common characteristics of less developed countries and offers an evaluation of policies being pursued. The course provides an introduction to the micro-economic approach to development economics. The course presents key theoretical models and related empirical evidence that shape our thinking of economic interactions and policy-making in developing countries.