Money, Banking and Finance MSc

Core modules:

Macroeconomic Analysis

Macroeconomics concerns the behaviour of the economy as a whole. In this module you will develop a coherent framework for understanding macroeconomics building on microeconomic foundations. The module will analyse the source of business cycle fluctuations, the aims of monetary policy in advanced economies, including the design of optimal monetary policy. It will also provide an advanced understanding of fiscal policy and debt dynamics. You will be introduced to the concept of financial frictions in the context of the last financial crisis, and gain an understanding of the aims and challenges faced by monetary policy makers.

15 credits

Econometric Methods

This module will develop your core econometrics skills. The first half of the module provides a grounding in key econometric techniques covering elements such as the classical linear regression model, hypothesis testing and problems of non-spherical disturbances. More advanced topics are then introduced in the second half of the module. Specifically you will focus upon topics in microeconometrics: including modelling discrete binary variables; censoring and sample selection, and then topics in macroeconometrics including: economic forecasting; stationarity; and cointegration. You will also develop a knowledge of using econometric software Stata.

15 credits

Optional modules - choose two from:

Asset Pricing and Portfolio Theory

This module will introduce you to some of the key concepts and methods in modern finance. This is an analytical module, which reflects the quantitative nature of the subject and in which each topic is developed from first principles. The module will cover the theoretical foundations of investor choice and portfolio selection based on utility theory, using these to provide a rigorous foundation for the Capital Asset Pricing Model. You will then examine some of the empirical issues that arise in the practical use of the theory.

15 credits

Behavioural Finance

This module explores the principles of Behavioural Finance, which integrates psychological insights into financial decision-making. Traditional finance models assume rationality, but Behavioural Finance recognizes the role of cognitive biases, emotions, and psychological factors in shaping market outcomes and individual decisions. The module aims to provide you with a deep understanding of how human behaviour impacts financial markets, asset pricing, corporate decision-making, and personal investing.

The following key topics will be covered: Expected Utility Theory; Asset Pricing, Market Efficiency, and Agency Relationships; Prospect Theory, Framing and Mental Accounting; Challenges to Market Efficiency; Heuristics and Biases; Overconfidence; Emotional Foundations; Experimental Behavioural Finance; Behavioural Corporate Finance; Investor Behaviour: The application of Behavioural Finance in Financial Planning and Investing. 

This module will equip you with a comprehensive understanding of how psychological factors influence financial markets and investor behaviour, helping them apply these insights to real-world financial problems.

15 credits

Corporate Finance

This module will aim to equip you with a comprehensive foundation of the core theoretical principles of corporate finance, along with practical insights into how these principles are applied when formulating investment analysis and financial strategy. You will be provided with a deeper understanding of key financial decisions faced by firms, with a particular focus on investment appraisal methods; risk management techniques; valuation techniques for stocks and bonds; financial statement analysis and modelling; the cost of capital and the capital structure decision. Additionally, the module will explore both the theoretical and empirical aspects of these topics, equipping you to tackle real-world financial challenges. 

15 credits

Microeconomic Analysis

Microeconomics is concerned with the behaviour of individuals, households and firms, and their interactions. This module aims to develop the skills you will require to analyse microeconomic problems and theories and to introduce advanced microeconomics. You will use mathematical and quantitative analysis to analyse topics such as consumer theory, behavioural economics, risk and uncertainty, production, and general equilibrium. In addition, this module will further develop your skills of critical evaluation and appraisal in the context of advanced microeconomic theory.

15 credits

Core modules:

Theory of Banking

This is an advanced module that provides a comprehensive examination of contemporary banking practices and challenges. This module covers both on balance sheet and off balance sheet operations with an emphasis on identifying and managing the main banking risks. You will examine the nuances of financial crises and the workings of bank funding schemes. Important facets of contemporary bank regulation are also covered in the module.

15 credits

Monetary Economics

In this module, you will explore contemporary frameworks for designing and implementing monetary policy. You will begin with a three-equation model mirroring the tools used by central banks to simulate policy rate adjustments in response to demand, supply, and inflation shocks. A central theme is the formation of inflation expectations, where you will evaluate how rational versus adaptive expectations alter policy conduct.The second half shifts toward structural foundations via a fully micro-founded New Keynesian framework. You will derive the economic intuition behind the model's key equations while developing the technical proficiency to solve them. The module concludes by applying this rigorous framework to analyse optimal monetary policy and contemporary challenges, such as navigating uncertainty in a global economy.

15 credits

One from:

Applied Econometrics: Cross-sectional and Panel Data Approaches

You will gain practical experience applying standard microeconometric techniques to large datasets and learn how to estimate and interpret results from a range of models commonly used in applied economic research. Through lectures and computer labs, you will study modern methods, including limited dependent variable models, instrumental variables, and panel data techniques, and learn how to implement them using statistical software. Working with real microdata will provide invaluable hands-on experience that prepares you for future empirical work in the private, non-profit, and public sectors.

15 credits

Applied Econometrics: Time Series Approaches

How can we extract insights from economic data to understand and forecast macroeconomic and financial dynamics? This module introduces you to the advanced time series methods essential for understanding modern research in macroeconomics and finance. You will explore fundamental concepts including stationarity, unit roots, and cointegration to model and analyse short- and long-run relationships. Through hands-on application with Stata software, you will learn to implement Autoregressive (AR) and Moving Average (MA) models, alongside Vector Autoregressions (VAR) to analyse how variables interact dynamically over time. By mastering these sophisticated econometric techniques, you will develop the specialised technical and research skills required to interpret empirical literature and conduct your own independent analysis. These competencies will empower you to contribute effectively to professional roles in economic forecasting, policy analysis, and financial research.

15 credits

Optional modules - choose one from:

Derivatives, Options, and Securities

The aim of this module is to introduce you to advanced principles of asset pricing, focusing on financial derivative instruments. You will gain knowledge of how important derivatives are traded, the pricing models for derivatives, and the principles of risk management using derivatives. This is an analytical module, which reflects the quantitative nature of the subject. The module will cover both the theoretical foundations of asset pricing, and the issues that arise in the practical use of these models and their limitations.

15 credits

Applied Econometrics: Cross-sectional and Panel Data Approaches

You will gain practical experience applying standard microeconometric techniques to large datasets and learn how to estimate and interpret results from a range of models commonly used in applied economic research. Through lectures and computer labs, you will study modern methods, including limited dependent variable models, instrumental variables, and panel data techniques, and learn how to implement them using statistical software. Working with real microdata will provide invaluable hands-on experience that prepares you for future empirical work in the private, non-profit, and public sectors.

15 credits

Applied Econometrics: Time Series Approaches

How can we extract insights from economic data to understand and forecast macroeconomic and financial dynamics? This module introduces you to the advanced time series methods essential for understanding modern research in macroeconomics and finance. You will explore fundamental concepts including stationarity, unit roots, and cointegration to model and analyse short- and long-run relationships. Through hands-on application with Stata software, you will learn to implement Autoregressive (AR) and Moving Average (MA) models, alongside Vector Autoregressions (VAR) to analyse how variables interact dynamically over time. By mastering these sophisticated econometric techniques, you will develop the specialised technical and research skills required to interpret empirical literature and conduct your own independent analysis. These competencies will empower you to contribute effectively to professional roles in economic forecasting, policy analysis, and financial research.

15 credits

International Money and Finance

In ECN6620 you will examine the modern theory of international money and finance and its use in analysing key economic challenges facing policymakers and society. You will examine dynamic general equilibrium (DGE) tradition that underpins much contemporary research and policy work, providing a coherent framework for understanding international macroeconomic interactions and policy design.

You will begin by building a benchmark DGE model of international money and finance, using it as a laboratory to learn how such models are constructed, solved, and interpreted. You will then extend this framework to study a range of topical issues, including balance of payments dynamics, determinants of international capital flows, emerging market finance and development, financial crises and policy intervention, currency crises, the 2008-09 global financial crisis, and sovereign default. Along the way, you will develop both theoretical insight and practical solution techniques.

By the end of the module, you will be able to work with frontier models of international money and finance, critically assess policy debates, and translate theory into policy-relevant conclusions. The module strengthens analytical, quantitative, and technical communication skills valued in policy institutions, international organisations, and the private sector, while also providing a solid foundation for postgraduate study and independent research in international macroeconomics.

15 credits

Industrial Organisation

This module will introduce you to contemporary topics in industrial organisation with a particular emphasis on the role of economic analysis of strategic decision making. You will learn to use and appraise a range of economic techniques to make better strategic decisions. In this module you will build on and expand on your knowledge of microeconomics related to market structure; such as competition in oligopolistic industries. You will also become familiar with further oligopoly models (product differentiation, collusion, mergers) as well as behaviour in platform markets. We will also consider market implications when consumers are imperfectly informed (or naive) about prices or product characteristics.

15 credits

MSc Dissertation

In this module students will complete an extended piece of written work on a topic of their choice. The dissertation will demonstrate their ability to carry out independent research and make an original contribution to the discipline.

60 credits