Ec4024 2009 Lecture 1 Introduction to the Course

Financial Economics EC4024 2009

Dr Stephen Kinsellastephen.kinsella@ul.ie

www.stephenkinsella.nettwitter.com/stephenkinsella

What’s this course about?

• Markets

• Macroeconomics

• Finance/Public Policy

• Meltdowns & the Future of the Financial System

You’ll learn

You’ll learn

1. How to read the financial pages

2. How to comment intelligently on current affairs

3. Understand & Critique Basic Models

4. Some econophysics & real market data

5. Trading Simulations & Experiments

6. Working with Real Data

Last Year’s Course

Introduction

Markets & Finance Risk & Uncertainty

Portfolio Analysis

CAPM APT EMH

Options, Futures, BS

Behavioural Finance

Prob. Theory

“Time changes everything except something within us which is always surprised by change.”-Thomas Hardy

2000 2002 2004 2006 2008

10000

5000

3000

7000

^ISEQ, Irish Stock Exchange, 1999---?

2000 2002 2004 2006 2008

10000

5000

3000

7000

^ISEQ, Irish Stock Exchange, 1999---?

This Year’s Course

Intro/Data

Structure of System Physical Descriptions

Crisis/Options

CAPM APT EMH

Behavioural Finance

Lab Tim

e / Experiments

“Other”

Stuff I expect you to know from EC4004

Marginal AnalysisDescription of Households & FirmsTheory of the Business CycleGame Theory

stephenkinsella.net/teaching

Grading

PS1 10% (Due week 4)

PS2 10% (Due week 8)

PS2 10% (Due week 10)

Final Exam 70%

Materials

Course Page on stephenkinsella.net/

Regular Blog Posts, links to media

Textbook, Pilbeam, Finance & Financial Markets, 50 Copies in Bookshop, 2 on 3hr reserve in Library.

Mini Presentations

Email by 5pm TODAY if you don’t want to be a volunteer

PRIZE FOR ORIGINALITY:

100 EUROS

Policies

Do reading before class

Do exercises in notes

Show up to lectures, check site daily.

Email whenever, but...

Don’t send me text messages!

Read Pilbeam, Cht 1& Lecture Notes on

Web