What can explain the extraordinary boom of the stock exchanges the last years? How do the actors in the financial markets behave? Is it possible to predict changes in the foreign exchange? Is the management strategy of the Norwegian Government Pension Fund - Global, one of the largest pension funds in the world, reasonable? Should more of the government income of oil production be invested nationally instead of in international financial markets? These are some of the key issues pertaining to Financial Economics analyzed by researchers at the Department of Economics.