Master VWL WS 2011/2012  

Development of Financial Markets and Institutions

Teacher: Andreas Hoffmann
Days: Monday and Wednesday
Time: 11.15 - 12.45
Room: SR 15, I 301
Language: English
Credits: 10 LPs, Grading is based on term paper which has to be presented in class, writing requirements (w.r.) and exam. 

Objective

We study the development of financial markets and institutions. The class covers monetary, banking and central banking history, as well as aspects of the history of government finance. We discuss the role of financial development for growth in emerging markets, the importance of stable moneys for economic development, as well as recurring patterns of financial crises.

Contents

I INTRODUCTION
Week 1: Introduction / Early Financial Development	11.10.2011
Seminar: No meeting / Students Search for Topics	13.10.2011
II HISTORICAL DEVELOPMENT
Week 2: Early Capital Markets and the First Bubbles	17.10.2011
Seminar: Introduction / Topics for Papers	19.10.2011
Week 3: Financial History of the 19th Century	24.10.2011
Seminar: Emerging Markets in History (US, Latin America) (w.r.)	26.10.2011
Week 4: Holiday	31.10.2011
Week 5: The Rationale and Origins of Central Banking	07.11.2011
Seminar: The Fed, the Great Depression and Keynesianism (w.r.)	09.11.2011
III POST-WW II DEVELOPMENT
Week 6: Bretton Woods	14.11.2011
Holiday	16.11.2011
Week 7: Second Era of Global Finance	21.11.2011
Seminar: "Democracy in Deficit" (w.r.)	23.11.2011
Guest Lecture: Meinhard Miegel (Weltwirtschaftsseminar)	24.11.2011
Week 8: Financial Repression and Liberalization	28.11.2011
Seminar: "Emerging Markets of the 1980s and 90s" (w.r.)	30.11.2011
IV ANALYSIS OF FINANCIAL CRISES AND INSTITUTIONS
Guest Lecture: Thomas Mayer, Chief Economist, DB Research	02.12.2011
Week 9: Crises Explanations and Recent Crises	05.12.2011
Students Away, No Seminar	07.12.2011
Week 10: Student Presentations	12.12.2011
Student Presentations	14.12.2011
Week 11: Financial Crisis Indicators	09.01.2012
Seminar: Presentation Mark Kirstein (13:15-14:45) Paper	11.01.2012
Week 12: Performance of Monetary Institutions	16.01.2012
Seminar: Discussion on Monetary Frameworks	18.01.2012
V FUTURE CHALLENGES
Week 13: Implications from Financial History	23.01.2012
Seminar: Final Discussion / Q&A	25.01.2012

Assignments

Week 1-5

Week 6-8               Week 9-13

 

Watch Sargent's Nobel Lecture!

Term paper due date: week 11

Basic Literature

J.B. Baskin and P.J. Miranti, A History of Corporate Finance, Cambridge, 1999.

E. Chancellor, Devil Take the Hindmost - A History of Financial Speculation, Farrar Straus Giroux, 1999.

C.P. Kindleberger, Manias, Panics, and Crashes - A History of Financial Crises, Wiley, 1996.

R. McKinnon, The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy, JHU Press, 1993.

L.H. White, The Clash of Economic Ideas, Manuscript, Mercatus Center.

V. Smith, The Rationale of Central Banking and the Free Banking Alternative (1936), Liberty Fund, 1990.