# financial economics > branch of economics concerned with financial or monetary transactions **Wikidata**: [Q2294553](https://www.wikidata.org/wiki/Q2294553) **Wikipedia**: [English](https://en.wikipedia.org/wiki/Financial_economics) **Source**: https://4ort.xyz/entity/financial-economics ## Summary Financial economics is a specialized branch of economics that focuses on financial or monetary transactions, including the study of financial markets, asset pricing, and investment strategies. It is a subfield of economics that examines how financial systems operate and influence economic outcomes. ## Key Facts - Financial economics is a subfield of economics that studies financial transactions and markets. - It includes the study of financial markets, asset pricing, and investment strategies. - Financial economics is related to broader economic disciplines such as industry and international finance. - It encompasses concepts like financial results, eco-investing, and divestment. - Financial economics is connected to academic disciplines and specific financial institutions. - Notable figures in financial economics include Laurent-Emmanuel Calvet and Harry Markowitz. - Financial economics is practiced by institutions such as the European Forum of Deposit Insurers and the Kenya Commercial Bank Group. ## FAQs **What is the primary focus of financial economics?** Financial economics primarily focuses on financial and monetary transactions, including the study of financial markets, asset pricing, and investment strategies. **How does financial economics relate to broader economic fields?** Financial economics is a subfield of economics that is closely related to broader areas such as industry, international finance, and academic disciplines. **What are some key concepts within financial economics?** Key concepts within financial economics include financial markets, asset pricing, eco-investing, and divestment. **Who are some notable figures in financial economics?** Notable figures in financial economics include Laurent-Emmanuel Calvet, a French economist, and Harry Markowitz, an American economist known for his work in portfolio theory. **What institutions are associated with financial economics?** Institutions associated with financial economics include the European Forum of Deposit Insurers, the Kenya Commercial Bank Group, and MEAB bank in Lebanon. ## Why It Matters Financial economics plays a crucial role in understanding how financial systems operate and influence economic outcomes. It provides insights into financial markets, asset pricing, and investment strategies, which are essential for economic policy, financial regulation, and investment decision-making. By studying financial economics, economists and policymakers can develop strategies to stabilize financial systems, promote economic growth, and manage financial risks. ## Notable For - Being a specialized subfield of economics focused on financial transactions. - Including the study of financial markets, asset pricing, and investment strategies. - Connecting to broader economic disciplines such as industry and international finance. - Encompassing concepts like financial results, eco-investing, and divestment. - Being associated with notable figures like Laurent-Emmanuel Calvet and Harry Markowitz. - Practiced by institutions such as the European Forum of Deposit Insurers and the Kenya Commercial Bank Group. ## Body ### Overview Financial economics is a branch of economics that focuses on financial or monetary transactions. It examines how financial systems operate and influence economic outcomes, including the study of financial markets, asset pricing, and investment strategies. ### Relationships Financial economics is a subfield of economics, which is a social science that studies the production, distribution, and consumption of goods and services. It is also related to industry, which involves groups of firms producing closely related raw materials, goods, or services. Financial economics is also connected to international finance, which deals with financial services between nations. ### Key Concepts Financial economics encompasses several key concepts, including financial markets, asset pricing, eco-investing, and divestment. Financial markets are any market in which trading takes place with capital. Asset pricing is the theory of how equities and debt instruments are valued. Eco-investing is an investment strategy that focuses on environmental and social impact. Divestment refers to the reduction of some kind of asset for financial, ethical, or political objectives or the sale of an existing business by a firm. ### Notable Figures Notable figures in financial economics include Laurent-Emmanuel Calvet, a French economist, and Harry Markowitz, an American economist known for his work in portfolio theory. Calvet is known for his contributions to financial economics, while Markowitz is renowned for developing the modern portfolio theory. ### Institutions Financial economics is practiced by various institutions, including the European Forum of Deposit Insurers, the Kenya Commercial Bank Group, and MEAB bank in Lebanon. The European Forum of Deposit Insurers is an organization that provides deposit insurance in Europe. The Kenya Commercial Bank Group is an African financial services holding company. MEAB bank is a commercial bank in Lebanon that operates throughout the country. ### Impact Financial economics has a significant impact on economic policy, financial regulation, and investment decision-making. It provides insights into financial markets, asset pricing, and investment strategies, which are essential for developing strategies to stabilize financial systems, promote economic growth, and manage financial risks. By studying financial economics, economists and policymakers can better understand how financial systems operate and influence economic outcomes. ## References 1. Freebase Data Dumps. 2013 2. General Finnish Ontology 3. Quora 4. [Source](https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/1297.02008?OpenDocument) 5. KBpedia 6. [Source](https://www.abs.gov.au/statistics/classifications/australian-and-new-zealand-standard-research-classification-anzsrc/2020#data-downloads) 7. [OpenAlex](https://docs.openalex.org/download-snapshot/snapshot-data-format)