What Is Financial Economics?

Financial economics ; the so-called financial economics is a science that studies the effective allocation of financial resources. Although there are various forms of financial resources (also called financial instruments), including currencies, bonds, stocks, and their derivatives, the returns and risks they bring are also different, but they all have one thing in common. Characteristics: People no longer own them as described by economic principles in order to obtain a satisfaction from the use of these "commodities", but hope that they can create more value in the future, so that In this "financial resource allocation" process that can directly increase its own material purchasing power, it has been most satisfied.

financial economics

(Branch of Economics)

modern

Eugene Fama, winner of the 2013 Nobel Prize in Economics ^[1] .

The "efficient market theory" he put forward laid the foundation of neoclassical financial economics with a concise and clear model. Fama's theory is born of the orthodox method of neoclassical economics, and has a rigorous and perfect theoretical framework. It is a research carried out under the mainstream neoclassical economics framework, and it naturally opens the mainstream financial economics. ^[2]