Introduction
The financial system is a web of institutional relationships set up to move funds between economic actors for profit. The roles these individual actors take up determines the shape of the market, and the gains investors can make for themselves in that market. In this lecture, we'll begin by looking at the overall structure of the system, then drill down into the decisions households and firms have to make and what they use to make these decisions, and then we'll talk about the functions of the financial system.
Aim
To explore the setup and functions of an idealised financial market
Length 50 minutes
Handouts, slides, and links for further reading are below the fold. Just click the link below.
Further Reading
Pilbeam, Chapters 1 and 2
ECB: Why does the structure of the financial system matter?
Slides
Handout
Right click the image below to download the .pdf
