Finance Is Based On Economics - 841 Words

Finance is based on economics. Therefore, to properly understand financial markets and their behavior, you must first understand economics. Economics is the concern of production, distribution, trade and consumption of goods and services. It is the science that arises out of the relationship between limited resources and unlimited wants and needs by humans. Macroeconomics started with John Maynard Keynes, an English economist, who published a book entitled General Theory of Employment, Interest and Money in 1936. Keynes offered a clarification for the fallout from the Great Depression, when goods remained unsold and workers unemployed, a feat that left classical economists stumped. Keynes theory explained why markets may not clear. This theory evolved throughout the 20th century, diverting into several macroeconomic schools of thought known as Keynesian economics, often referred to as Keynesian theory or Keynesianism. However, in this paper, we will discuss what macroeconomics is, v ariables that make a healthy economy, the goals of macroeconomic policy and how the goals might conflict, the differences between fiscal policy and monetary policy, and other types of policies. According to Webster’s dictionary Macroeconomics is defined as a study of economics in terms of whole systems especially with reference to general levels of output and income, and to the interrelations among sectors of the economy. However, macroeconomics is a branch of the economics field that studiesShow MoreRelatedMajor Economic Journal : Business And Economics Journal907 Words   |  4 PagesBusiness and Economics Journal The first journal I found was Business and Economics Journal which is an open access publisher. The main side gives an overview of useful links like most viewed article, indexing and archiving, eBook etc. Followed by article recommendations based on categories: †¢ Accounting †¢ Business Management †¢ Economics †¢ Finance †¢ Management †¢ Marketing Pursued by a tweet section, Editor Board, and other important information. Nevertheless, this webpage representsRead MoreMonitoring and evaluation1235 Words   |  5 PagesDevelopment Finance Monitoring and Evaluation Lecture-I Dec 2, 2013 Learning objectives 1 What is development? 2 Emergence of development economics 3 Development planning in India 4 Evaluating development programmes 5 What is impact evaluation? 6 Types of evaluation 7 Evidence-based policy making 8 Evaluation questions; hypotheses and performance indicators Development Finance (IFMR) Monitoring and Evaluation Dec 2,2013 2 / 11 Read More Shariah Principles Governing Islamic Law Essay950 Words   |  4 PagesIslamic finance is governed by the Islamic law (shari’ah) and the sources from Quran and Sunnah. Islamic finance is the financial framework that comprise the activities according to Islamic law that known as Shariah principle. In Islamic law, any activities involved must be prohibiting from riba. Riba means extra or excess interest in payment made by buyer or customer to the seller or bank. Besides riba, Shariah Law also prohibits any transactions that contain gharar (uncertainty) and maysir (gambling)Read MoreThe Impact Of Finance On Real Estate Assets And The Economic Outlook Of The Entire World Economy946 Words   |  4 Pagesfascinated me was the influence of finance on real estate assets and the economic outlook of the entire world economy. Studying modules such as, Financial Markets, Multinational Financial Management, Financial Statistics, Mathematics and Economics at university le vel was the revelation that perfectly matched my ambition in what I wanted to do. Studying the different factors that influence financial markets, organisations and entire nations is combining my interests for Finance to the balance I aimed forRead MoreEfficient Market Hypothesis Vs Behavioural Finance1747 Words   |  7 PagesEfficient Market Hypothesis v’s Behavioural Finance An efficient market is one in which share prices quickly and fully reflect all available information, where investors are rational, and there are no frictions. Investors determine stock prices on the basis of expected cash flows to be received from a stock and the risk involved. Rational investors should use all the information they have available or can reasonably obtain, including both known information and beliefs about the future. In an efficientRead MoreCorporate Finance Programs1540 Words   |  6 PagesCorporate Finance Programs Introduction In a companys operational activities, it is essential induce financial management in its organizational structure. All business operations center on the use of finances to incur profits that benefit the company employees, shareholders and their nations economic society. This context digs into the conduction of both managerial and corporate finance. The executive finance deals with managerial implication on financial techniques used alongside pecuniary decisionsRead MoreWhat Is The Transformation Of The Finance Function?1024 Words   |  5 PagesThe Transformation is facing financial management as a growing industry that provides a well-rounded wealth of information that is rapidly evolving along with the economic growth. As you well know our finance and accounting departments are under fire to perform dynamically. More exceptional than before is the weight to drive real-time intelligence and the constraints to develop a forward-looking analysis to support a business decision. In ret rospect, this coincides with dramatic shifts in businessRead MoreFinance : A Successful Entrepreneur1286 Words   |  6 PagesThe definition of finance is rather complex but Merriam Webster seems to provide the most comprehensive explanation, stating, â€Å"the management of revenues; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking and investment† (Merriam Webster). The management of revenues is essentially the core of what separates the jobs of finance majors, compared to other business-related majors such as accounting and economics. While accountantsRead MoreArticles Relating to Capital Structure-Essay1658 Words   |  7 PagesArticles†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..8 References/Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.9 â€Æ' Introduction On Capital Structure :- In the field of finance capital structure means a way an organization or firms finances their assets by the way of some mix and match of Equity, Debt or Hybrid Securities. The modern thinking on capital structure is based on the Modigliani-Miller theorem given by Franco Modigliani and Merton Miller. The theorem suggests that in a perfect market the total value of theRead MoreIn the modern finance theory , behavioral finance is a new paradigm , which seeks to appreciate and1000 Words   |  4 PagesIn the modern finance theory , behavioral finance is a new paradigm , which seeks to appreciate and expect systematic financial market influence of psychological decision making ( Olsen R A, 1998). In the recent studies irrationality in the decision making was revealed , based on certain cognitive limitations. The present chapter is divided into two aspects According to traditional models in finance and economics, human beings are rational while taking their decision. However the recent studies explain