By completing the course students will be able to understand forces that determine prices of financial. The course will also develop an understanding of how interest rates, prices of bonds, international capital flows, and exchange rates are simultaneously determined. Students will also be familiar with the functioning of non-bank financial intermediaries such as Investment banks and Hedge Funds. Students also will have an understanding of the Financial Crises and their affect on Real Economy.

The structure and operation of financial markets, the determination of interest rates and yields and their relation with the asset prices. Examining Hendge Funds, Derivatives, Investment Banks and Shadow Banking System.