Financial economics minor grows in popularity

The minor in Financial Economics is not like other minors at Hopkins. It isn't just a watered down major in a subject. Instead, it is uniquely focused on educating students on how to couple economic theory and financial practice.

Through the Center for Financial Economics, a finance department focused on producing cutting edge financial research, the minor is largely structured around extracurricular activities and research opportunities.

Hopkins alumni work closely with the Center for Financial Economics to ensure opportunities for Hopkins students to experience first hand the real-world workings of the financial sector.

Louis Maccini, a professor in the Hopkins Economics Department, who was pivotal in the creation of both the Center for Financial Economics and the subsequent minor, described how alumni who worked on Wall Street were the reason the minor occurred in the first place.

"I would meet alumni working in Wall Street. They would say they got an education in Economics [at Hopkins], but not in Finance," Maccini said.

As the Center for Financial Economics began to gain support within the university, it launched an intersession course named "Wall Street Today," a course overviewing the current financial sector which included alumni presentations, networking and a three-day trip to New York City.

Within the newly created minor, students were able to reap the benefits of the Center's connections with Hopkins alumni on Wall Street to an even greater degree.

"Alumni who work on Wall Street participate in classes and one even teaches a course each spring," Maccini said. "Alumni play a big part [in the Financial Economics minor.]"

Maccini commented that there are two ways the minor increases the competitiveness of students. The first is "what the minor does for student's resumes." Having knowledge that many do not learn until they go to business school is highly valuable to a student applying to a job in finance, and firms take notice.

The second increase in competitiveness comes from "what the minor does for the student's head." By giving students advance knowledge in the financial sector, they are able to go into interviews with a stronger knowledge of the field, which leads to more impressive first impressions and a greater chance of being hired.

Of course, just getting a job is not the only important thing you get out of an education. The minor also boasts of many extracurricular and educational programs which uniquely prepare its students for work in finance.

One example is the use of Bloomberg terminals, whose numbers have been increasing at Hopkins lately, largely as a result of the Center for Financial Economics. The minor uses them for training projects and hopes to integrate their use into courses.

"If you know how to use the tools, you will hit the ground running [once you're in the field,]" Jon Faust, a professor in the Hopkins Economics Department, said.

To complete the minor, seven classes must be taken. Two are the Economic staples of Micro- and Macroeconomics, followed by Micro Theory and four upper-level classes related to finance through the economics department.

Since it's inception, the minor has achieved significant success. Faust notes how "Financial Markets and Institution," an elective course for the minor, grew from about 70 students last year to 150 this year.

Furthermore, since the Center for Financial Economics and its minor have appeared, financial companies have shown up on campus with much more vigor.

"As we convince them we have a big enough group of smart and interesting people [financial firms will view Hopkins as a place to find potential employees,]" Maccini said. 

With its growing popularity and success in preparing students for careers, many students are starting to ask themselves whether they are ready to join the ranks of those interested in the role of finance in economic theory. And sometimes more importantly, if they can fit seven classes into their schedule.