The Interrelations of Finance and Economics

With the rapid development of financial study, how to understand the finance subject and how
to distinguish between the subject of finance and economics has become a very important issue to
financial researchers who would like to advance financial study further. This article reviews the
history of financial study, describes the major framework of the financial study, gets a
comparatively clear definition of finance and points out the unique “no-arbitrage” intuition and
analytical method in financial study. It is reasonable to conclude that finance is a subject with
unique characteristics and the financial intuition is quite important in financial study.