Economics of Financial Systems (ECO140)

This course aims to provide a solid analytical foundation for understanding how the modern financial system works and its relationship with the broader economy. The course systematically explores four major topic areas: the formation and behavior of interest rates in financial markets; the economics, management, and regulation of banking institutions; the role of central banks and the tools and strategies of monetary policy; and the structure and challenges of the international financial system. Theoretical models are continuously grounded in real-world examples from the 2008 – 2009 financial crisis to current challenges in the eurozone and emerging markets – preparing students not only for academic understanding but also for practical application in financial markets.