Master VWL Winter 2017/18  

Development of Financial Markets and Institutions

Lecturer: Dr. Andreas Hoffmann
Start: 09.10.2017
Date: Monday (11:15-12:45) and Wednesday (15:15-16:45)
Room: SR14 (I302)
Language: English
Level: Master
Module Number: 07-202-3319
Requirement: Portfolio: 1.) assignments worth 1/3, and 2.) a term paper project worth 2/3 of the final grade.
Credits: 10 LP

Objective

The course aims to provide an understanding of the development of international financial markets and institutions. It covers important aspects of monetary and financial history, as well as some key issues in international money and finance. Main topics include the origins of financial markets and institutions, the history of the international monetary system, the link between finance and growth, the political economy of capital mobility, capital flows to emerging market economies, and the recurrence of financial crises.

Syllabus

Contents

MondayWednesday

09.10.

Introduction

Part I: Origins of Financial Markets and Institutions

16.10.

Early Financial Markets

18.10.

First Bubbles: Rational or Irrational

23.10.

European Financial Markets in the 19th Century

25.10.

Early US Financial Development

Assignment #1

30.10.

Origins of Central Banking

01.11.

International Currencies

Part II: Finanical Integration, Crisis, and Growth

06.11.

Financial Integration in Historical Perspective

08.11.

The Political Economy of Capital Mobility 

13.11.

Financial Liberalization

15.11.

Credibility and Borrowing Costs: Gold Standard and EMU Assignment #2

27.11.

EMU in Historical Perspective

29.11.

Performance of Monetary Institutions 

04.12

Dies Academicus

06.12.

Roots of Financial Instability

Assignment #3

Part III: Two-Day Seminar/Term Paper Presentations

Tue.

12.12.

I411

 

 

 

 

12:30 - 13:30 Lecture on Financial Crises

14:00 - 14:30 Dot-Com Bubble Rational? (I. Manthey)

 14:45 - 15:15 Manias (St. Stollberg)

15:30 - 16:00 Risk Management in Banks (Y. Igde)

 

Wed.

13.12.

I411

10:00 - 10:30 Debt Restructuring (L. Baumeister)

10:45 - 11:15 Liberalization in Syria (K. Kamal)

11:30 - 12:00 Liberalization in Turkey ( O. Cevik)

13:00 - 13:30 Transition of China (F. Deligöz)

13:45 - 14:15 Central Bank Independence (C. Suada)

14:30 - 15:00 Blockchain (P. F. Beckmann)

15:45 - 16:15 Bitcoin (T. A. S. Wanner)

Part IV: Discussion on Some Hot Topics

08.01.

The Great Depression

10.01.

Lessons Learned from Great Depression?

15.01.

Government Debt and Economic Growth Assignment #4

17.01.

War on Cash and Debt Liquidation

22.01.

The Deflation and Asset Prices Debate

24.01.

Capital Flow Management in Emerging Markets (Term Paper Due Date)

29.01.

Financial Regulation and Complexity

31.01.

Prudential Regulation: Capital Requirements Assignment #5

Reading Lists

Origins of Financial Markets and Institutions

Financial Integration, Growth and Crises

Hot Topics

Most readings are available online or in the university library. You have access to the journal articles via the intranet / eduroam.

Miscellaneous

"The Ascent of Money" by Ferguson as Video

"Destabilizing Consequences of Central Banking" by Selgin as Video.

Assignments

Assignment #1(Due Date: October 25, 2017)

Assignment #2(Due Date: November 15, 2017)

Assignment #3 (Due Date: December 6, 2017)

Assignment #4 (Due Date: January 15, 2018)

Assignment #5 (Adhere to formating guidelines!) (Due Date: January 31, 2018)

Term Paper

The term paper can be on any topic that is related to the class. It shall be original, detailed, and well-argued. Empirical studies are especially welcome. Term papers shall comprise at least 5,000 but need not exceed 6,000 words, excluding footnotes and bibliography. Include a word count on the front page of the paper. Papers should meet the standard formal requirements. No plagiarism!

I want two copies of your paper: Send one copy (pdf file) to ahoffmann[at]wifa.uni-leipzig.de. Also hand in one hardcopy of the paper. Feel free to submit the paper early. Late submissions are not accepted.

Books

Background Readings

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.

B. Eichengreen, Globalizing Capital: A History of the International Monetary System, Princeton, 2008.

M. Obstfeld and A. Taylor, Global Capital Markets, Cambridge, 2004.

Further Suggestions

N. Ferguson, The Great Degeneration: How Institutions Decay and Economies Die, Pinguin Books, 2012.

F. A. v. Hayek, Monetary Nationalism and International Instability, Longmans, Green, 1937.

L. Neal, The Rise of Financial Capitalism, Cambridge University Press, 1993.

R. I. McKinnon, The Unloved Dollar Standard, Oxford University Press, 2013.

Ed. Stringham, Private Governance, Oxford University Press, 2016.


letzte Änderung: 10.09.2018