The course is aimed mainly at economists who are or may become economic policy advisors, makers, or implementers. The emphasis is on the use emerging economies can make of financial markets and instruments and on how they can develop them. The course covers both finance theory and its applications. Discussions of case studies represent one third of the required class work. Prior knowledge of finance is useful but not required

This course describes the main financial markets and instruments and their use for economic management and development, with emphasis on emerging economies. Four major topics will be covered: financial markets and instruments for monetary and fiscal policy; financial markets and instruments for the management of domestic and foreign debt; the role of the stock market in development; and investment theory, financial derivatives, and the management of official reserves. The course includes a visit to financial institutions in Sydney and relies heavily on case studies.

The aim of the course is to give students

1. a working knowledge of financial terms and concepts
2. an understanding of how financial markets and instruments operate and how they can be used to achieve economic policy objectives
3. an understanding of the steps required for the development of those markets and instruments and of the optimal sequencing of reforms
4. the skills required for work in a financial institution, in a various areas of government using or regulating the financial sector

Assessment is based on:

• Mid-term examination (20%, redemptive)
• Short essay (20%)
• Class participation and assignments (10%)
• Final examination (50%)

Delivery mode:

On campus