ELE 3732 Financial bubbles, crashes and crises

ELE 3732 Financial bubbles, crashes and crises

Course code: 
ELE 3732
Department: 
Law and Governance
Credits: 
7.5
Course coordinator: 
Knut Sogner
Product category: 
Bachelor
Portfolio: 
Bachelor - Electives
Semester: 
2018 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

The US. Sub-Prime crisis and the subsequent global financial crisis have contributed to a deep and prolonged recession in the global economy. What were the causes of the recent financial crisis? Why did it spread so rapidly internationally? How have authorities in affected countries dealt with them?

There are different and often competing theories about the causes, effects and how to deal with financial crises. The course will provide an overview of the varying approaches and schools of thoughts on financial instability. Furthermore, the course will focus on a selection of historical cases on financial crashes and crises in order to demonstrate differences as well as similarities between recent and past crises.

Learning outcomes - Knowledge

Since financial crises affect most areas of the economy, knowledge about them is of importance to most people who work on economic issues.

The students shall acquire a broad base of theoretical and empirical knowledge on financial stability and financial crises in a historical perspective. The students will also learn about regulatory issues and central aspects of crisis management in the past and how they relate to current problems.

 

Learning outcomes - Skills

The students will acquire skills necessary to distinguish between different theories about causes and effects of financial crises, and apply this knowledge for analytical purposes. Moreover, students will obtain the skills to work on tasks within supervision, the development of financial structure, ratings and the rating industry, etc. Acquired knowledge will also be important for management tasks in business and the civil service.

Learning Outcome - Reflection

On completion of the course the students will have a solid basis for ethical reflection upon ethical dilemmas connected to unfolding financial crises and have developed ability for critical theoretical and methodological reflection.

Course content

The coursewill address the following themes:

  • Theories on financial crises
    • Minsky-Kindleberger
    • The Monetarist school
    • Other approaches
  • Domestic debt and sovereign debt crises
  • Regulation and supervision
  • Four historical and comparative cases
    • The Nordic banking crises, 1987-1995
    • The Wall-street crash, the great depression and the crises of the 1930s
    • The Scandinavian banking crises of the 1920s
    • The US. subprime crisis 2007-2009 and the subsequent global financial crisis
Learning process and requirements to students

The course consists of lectures, casework/assignments and presentations.

Software tools
No specified computer-based tools are required.
Additional information

For electives re-sit is normally offered at the next scheduled course. If an elective is discontinued or is not initiated in the semester it is offered, re-sit will be offered in the electives ordinary semester.

Qualifications

Higher Education Entrance Qualification.

Required prerequisite knowledge

No specific prerequisites required.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
ELE37321
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
100Yes5 Hour(s)
  • Bilingual dictionary
Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • Bilingual dictionary
Duration:5 Hour(s)
Comment:
Exam code:ELE37321
Grading scale:ECTS
Resit:Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching36Hour(s)
Review of assignments in plenary8Hour(s)
Group work / Assignments25Hour(s) Casework and assignments
Prepare for teaching6Hour(s)Preparation for presentations
Self study120Hour(s)
Examination5Hour(s)
Expected student effort:
Workload activity:Teaching
Duration:36 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:8 Hour(s)
Comment:
Workload activity:Group work / Assignments
Duration:25 Hour(s)
Comment: Casework and assignments
Workload activity:Prepare for teaching
Duration:6 Hour(s)
Comment:Preparation for presentations
Workload activity:Self study
Duration:120 Hour(s)
Comment:
Workload activity:Examination
Duration:5 Hour(s)
Comment:
Sum workload: 
200

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.

Talis literature

Obligatorisk/Compulsory

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Mishkin, Frederic S. 2016 The economics of money, banking, and financial markets 11th ed., Global ed Pearson  
Aliber, Robert Z.; Kindleberger, Charles P. 2015 Manias, panics and crashes: a history of financial crises 7th ed Palgrave Macmillan  
Document
Authors/Editors År Tittel Edition Publisher StudentNote
Knutsen, Sverre   Selection of articles - Financial bubbles, crashes and crisis   Handelshøyskolen BI  

Anbefalt/Recommended

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Jonung, Lars; Vartia, Pentti; Kiander, Jaakko cop. 2009 The Great financial crisis in Finland and Sweden: the Nordic experience of financial liberalization   Edward Elgar 241 pages
Reinhart, Carmen M.; Rogoff, Kenneth cop. 2009 This time is different: eight centuries of financial folly   Princeton University Press Page 1-292
Chapter
Authors/Editors År Tittel Journal Edition Publisher StudentNote
Sjögren, Hans; Knutsen, Sverre   Why do banking crises occur? : an evolutionary model of Swedish banking crises Why do banking crises occur? : an evolutionary model of Swedish banking crises