iTeach and Unit Guides will be undergoing maintenance tonight (Tue 10th Feb) from 8:30-11:30pm AEDT. Service may be temporarily unavailable during this time. Apologies for any inconvenience. Updates via https://itstatus.mq.edu.au
Students

ECON2050 – Money and Finance

2026 – Session 1, In person-scheduled-weekday, North Ryde

General Information

Download as PDF
Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Ha Vu
ha.vu@mq.edu.au
Contact via ha.vu@mq.edu.au
Room 429 4 Eastern Road
Please check ilearn
Lecturer
Sean Turnell
sean.turnell@mq.edu.au
Contact via sean.turnell@mq.edu.au
Please check ilearn
Credit points Credit points
10
Prerequisites Prerequisites
ECON1021 or ACST1001 or (10cp from COMP, ENGG, FOSE, MATH or STAT units at 1000 level)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit examines the evolution of money and finance from ancient times to the present. It provides students with an understanding of the nature of money, the role and characteristics of financial markets, and the instruments and institutions that affect them. The central theme is that innovation in money and finance has been as important as other types of innovation in shaping the modern world. Topics may include the nature of money, interest rate determination and the yield curve, central banking and the actions of monetary authorities, the innovations of behavioural finance and crypto-currencies, analyses of money markets, bond markets, equity and derivatives markets.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • ULO1: Identify, define and analyse contemporary issues in money and finance.
  • ULO2: Demonstrate a capacity to work independently, including the ability to research, form arguments and write professionally proficient short-discussion pieces.
  • ULO3: Critique the academic literature, examining alternative and creative ways of thinking about financial markets in business and policy environments.

General Assessment Information

Late Submission Penalties

If you submit your assessment late, 5% of the total possible marks will be deducted for each day (including weekends), up to 7 days. Submissions more than 7 days late will receive a mark of 0.

Example 1 (out of 100):

If you score 85/100 but submit 20 hours late, you will lose 5 marks and receive 80/100.

Example 2 (out of 30):

If you score 27/30 but submit 20 hours late, you will lose 1.5 marks and receive 25.5/30.

Extensions

Automatic short extension: Some assessments are eligible for automatic short extension. You can only apply for an automatic short extension before the due date.

Special Consideration: If you need more time due to serious issues and for any assessments that are not eligible for Short Extension, you must apply for Special Consideration. Need help? Review the Special Consideration page for further details.

Assessment Tasks

Name Weighting Hurdle Due Groupwork/Individual Short Extension AI assisted?
Professional practice: Reflection on money and finance 30% No Weeks 5 and 11 Individual No Observed
Skills development: Presentation 20% No 11:55pm Wed 06 May 2026 (Week 9) Group No Open AI
Formal examination 50% No During the Examination period Individual No Observed

Professional practice: Reflection on money and finance

Assessment Type 1: Problem-based task
Indicative Time on Task 2: 18 hours
Due: Weeks 5 and 11
Weighting: 30%
Groupwork/Individual: Individual
Short extension 3: No
AI assisted?: Observed

The purpose of this assessment is for you to observe the world around you and to reflect on the relevance of money and financial topics covered in this Unit.

Students will complete two reflections in class, on the connection between theory, practice, and their collection of real-life observations, discussing possible implications.

Skills in focus:

  • Critical thinking and problem solving
  • Discipline knowledge

Deliverable(s): In class written task

Individual assessment
On successful completion you will be able to:
  • Identify, define and analyse contemporary issues in money and finance.
  • Demonstrate a capacity to work independently, including the ability to research, form arguments and write professionally proficient short-discussion pieces.

Skills development: Presentation

Assessment Type 1: Presentation task
Indicative Time on Task 2: 20 hours
Due: 11:55pm Wed 06 May 2026 (Week 9)
Weighting: 20%
Groupwork/Individual: Group
Short extension 3: No
AI assisted?: Open AI

The purpose of this assessment is for you to work collaboratively and develop expertise in crafting solutions to real-world related issues.
 
You will work in teams to examine real-world scenarios and produce and submit a video presentation in which all group members must present a part.
 
Skills in focus:
  • Critical thinking and problem solving
  • Communication skills
  • Digital skills
  • Collaboration skills
  • Work readiness
Deliverable(s): Presentation
 
Group assessment
On successful completion you will be able to:
  • Demonstrate a capacity to work independently, including the ability to research, form arguments and write professionally proficient short-discussion pieces.
  • Critique the academic literature, examining alternative and creative ways of thinking about financial markets in business and policy environments.

Formal examination

Assessment Type 1: Examination
Indicative Time on Task 2: 32 hours
Due: During the Examination period
Weighting: 50%
Groupwork/Individual: Individual
Short extension 3: No
AI assisted?: Observed

The purpose of this assessment is for students to demonstrate the expertise they have gained in Money and Finance.
 
You will participate in a 2-hour exam held during the University Examination period.
 
Important information about the exam will be made available on the unit iLearn page. You should also review the MQ Exams website for general tips. 
 
Deliverable(s): Formal exam
 
Individual assessment
On successful completion you will be able to:
  • Identify, define and analyse contemporary issues in money and finance.
  • Critique the academic literature, examining alternative and creative ways of thinking about financial markets in business and policy environments.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation.

3 An automatic short extension is available for some assessments. Apply through the Service Connect Portal.

Delivery and Resources

The delivery format of this Unit is as follows:

  1. A two‑hour face‑to‑face lecture will be held every Friday from 9:00–11:00am in 29WW T1 Lecture Theatre. Online students may join concurrently via the livestream. Each weekly lecture includes in-depth discussion of the topic matter from the Lecturer – Sean Turnell- as well as in‑class discussions and activities designed to enhance your engagement and deepen understanding. Attending lectures is very crucial given that there is no prescribed textbook for this Unit.  
  2. A one‑hour tutorial (beginning in Week 2) will run either in person on campus or online via Zoom, depending on your class registration. Tutorials focus on working through practice questions that strengthen your disciplinary knowledge, develop critical thinking and problem‑solving skills, and support your overall work‑readiness. Please note that the Professional Practice tasks are assessed in your registered tutorial class.

All materials for the unit, such as lecture notes, readings, and discussion questions will be available to students on the unit iLearn page at http://ilearn.mq.edu.au. Students are strongly encouraged to check iLearn weekly for announcements as well as the unit schedule, additional readings, assessment information, and discussion questions.

There is NO prescribed textbook for Econ2050.

Recommended Texts and/or Materials

(i) Kidwell, D. et al. 2025, Financial Markets, Institutions and Money (5th edition), Australian Edition, John Wiley & Sons Australia. (Older editions of this text are available, in both physical copy and online access, from the University Library)

(ii) Madura, J. & Paskelian O. 2024, Financial Markets and Institutions (14th edition), Cengage Learning, 

(Iii) David McWilliams (2024) ‘Money – A story of humanity’. Here is a review of the book from the Financial Times: https://www.ft.com/content/7366c887-688f-4022-83e7-8d095a7c75ea

(iv) Felix Martin (2014) 'Money: The Unauthorized Biography--From Coinage to Cryptocurrencies'. Here is a review of the book from the New York Times: https://www.nytimes.com/2014/04/13/books/review/money-by-felix-martin.html

(v) Mervyn King (2016) 'The end of Alchemy: Money, Banking and the future of the Global Economy'. Here is the review of the book from the New York Times: http://www.nybooks.com/articles/2016/07/14/money-brave-new-uncertainty-mervyn-king/

(vi) Glyn Davies (2016) 'A History of money from ancient times to the present day', 4th. ed. revised by Duncan Connors, Cardiff: University of Wales Press. 

(vii) Niall Ferguson (2008) ‘The Ascent of Money’, Allen Lane (Penguin), London.

This book provides an overview of the history of money and finance. What makes this different to most books recommended for courses such as this is that it is also great fun to read – full of drama, violence, scandal, passion, crime, and so on – in short, all the things that really drive money and finance. It takes its story all the way up to mid-2008. A television series on the book was also made in 2008, and it is available on YouTube at https://www.youtube.com/watch?v=fsrtB5lp60s.

Other useful resources: 

www.wsj.com

www.ft.com

www.bloomberg.com

www.theeconomist.com

(Note that you can get access to the Economist via the University subscription - go to the library and search The Economist)

www.rba.gov.au

https://www.federalreserve.gov/

https://www.bis.org

Unit Schedule

Week

Lecture

Assessment tasks

1

Topic 1: Introduction

This topic provides you an overview of what money is and the role of finance. We will also touch upon all the topics to be discussed throughout this course.

 

2

Topic 2: The Evolution of Money and Finance

We will first look into the functions and attributes of money in modern society. From there we will then go back in time to see how examines how money and finance have evolved through times since 5000BCE.

 

3

Topic 2 (cont)

 

4

Topic 3: Central Banking and Monetary Policy

In this topic we’ll look at the main functions of central banks, the important of central bank independence, and traditional and unconventional monetary policy.

 

5

Topic 3 (cont)

Professional Practice (Task 1) (15%)

6

No Lecture nor tutorial classes this Week due to Good Friday

 

 

SESSION BREAK: 7 – 17 April, 2026

 

7

Topic 4: Theories of Interest Rates and Term Structure

This topic examines what determines the overall level of interest rates through the Loanable Fund theory and the Liquidity Preference theory. We will then look at the Yield curve or Term structure of interest rates, and alternative theories to explain different shapes of the yield curve.

 

8

Topic 5: Money Markets

This topic discusses the role and functions of money markets, examine different money market instruments.

 

9

Topic 6: Bond Markets

In this topic we will look at the importance of bonds, and the history of bonds. Then we'll take the US a case study to see how bonds help with a nation-building. We'll also look at different types of bonds.

Group Presentation (20%)

Due 11:55pm Wednesday 6 May 2026

10

Topic 7: Equity Markets

In this topic we’ll first look at the origins of the stock market and then examine the modern equity markets. We'll also talk about share market indices and whether the share market is a predictor of the future state of the economy.

 

11

Topic 8: Derivatives Markets

Derivatives instruments can be used to manage risks as well as to speculate. This topic examines alternative types of derivatives including forwards and futures, options. Then we will look at swap and credit default swap.

Professional Practice (Task 2) (15%)

 

12

Topic 9: Behavioural Finance

Traditional finance theory is built on the notion that the actions of economic agents are guided by the criterion of maximizing expected utility.

Behavioral finance (BF) takes the position that not all economic decisions can be described by the equilibrium conditions in such an economy.

In this topic, we’ll first examine some stylized facts that were inconsistent with the rational utility-maximizing representative agent. Then we will look at the theories of BF: Heuristics or the rules of thumb, and Prospect theory, which is about how our mind limits decision making process.

 

13

Topic 10: The Future of Money

We will end this course with some recent development in the world of digital and cryptocurrencies.

 

 

Final Exam (50%): During the University Examination Period

 

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit connect.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Academic Success

Academic Success provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via the Service Connect Portal, or contact Service Connect.

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/. 

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.

Unit information based on version 2026.04 of the Handbook