Three essays on financial markets and the macroeconomy

Abstract

Financial markets are of vital importance to the overall economy: many market movements and phenomena have deep roots in and profound influences on macroeconomic activity. It is thus essential for policymakers seeking to maintain a healthy economy to understand the information conveyed by financial markets. Using both theoretical and empirical approaches, essays in this thesis study the pricing and trading of financial assets, with a particular emphasis on policy and regulatory implications.