What is the difference between economics, finance and financial engineering?

1, the emergence of a different time

Financial engineering is the end of the 1980s, the early 1990s, with the rapid development of companies, commercial banks, investment banks and securities investment business and the birth of an engineering-type emerging interdisciplinary. It is the latest development of modern finance, marking the financial science towards productization and engineering.

After the end of the 1950s, the name of "money and credit science" was gradually widely adopted. At this time, attention began to be paid to the comprehensive analysis of financial problems, and some theoretical issues were put forward for discussion in the light of Chinese reality.

Economics originated from the ancient Chinese economic thought, the Greek Xenophon and Aristotle as the representative of the early economics, through the development of Adam Smith, Marx, Keynes, Chinese economists and other economists, economics is gradually from political economy to scientific economics, economics theory system and practical applications continue to improve.

2, different ideas

The core idea of economics is to study, grasp, and apply the economic laws to achieve the optimal allocation of resources and optimal regeneration, to maximize the creation, transformation, and realization of value, to meet the needs of the material and cultural life of mankind and to promote the sustainable development of society.

The content of financial research is extremely rich. It is not only limited to the study of financial theory, but also includes the history of finance, the history of financial doctrines, contemporary financial doctrines of the East and the West, as well as the financial system of various countries, financial policy research and comparative research, securities, trusts, insurance and other theories are also in the scope of the study of finance.

Financial engineering focuses on the pricing and practical application of derivative financial products, and it is most concerned with the use of innovative financial instruments to more effectively allocate and redistribute the various economic risks faced by individuals in order to optimize their risk/return ratios.

3, focus on different

Financial engineering focuses on the pricing and practical application of derivative financial products, which is most concerned about how to use innovative financial instruments to more effectively allocate and redistribute the various economic risks faced by individuals to optimize their risk/return ratio.

Finance can comprehensively master the basic theories and fundamental knowledge of economic disciplines and financial disciplines; systematically master the basic theories and analytical methods, professional knowledge and business skills of finance; be familiar with the relevant laws, policies and international rules; understand the history, current situation and development trend of domestic and foreign financial disciplines and the financial industry; and have a strong ability to research, analyze and solve practical problems and a certain degree of scientific research The program is designed to provide students with the ability to research, analyze, and solve practical problems.

The object of economics is the nature and law of human economic activities. Socio-economic development is a dynamic equilibrium process in which the subject and object are transformed from asymmetric to symmetric, and the subject and object are transformed from asymmetric to symmetric, which is dominated by the subject's value-creating activities, which is the fundamental driving force of socio-economic development.

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