ELE 3732 Financial bubbles, crashes and crises
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.
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.
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.
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.
The coursewill address the following themes:
- Theories on financial crises
- 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
The course consists of lectures, casework/assignments and presentations.
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.
Higher Education Entrance Qualification.
No specific prerequisites required.
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination when next scheduled course
|Form of assessment:||Written submission|
|Support materials:|| |
|Resit:||Examination when next scheduled course|
|Workload activity||Duration||Type of duration||Comment student effort|
|Review of assignments in plenary||8||Hour(s)|
|Group work / Assignments||25||Hour(s)||Casework and assignments|
|Prepare for teaching||6||Hour(s)||Preparation for presentations|
|Workload activity:||Review of assignments in plenary|
|Workload activity:||Group work / Assignments|
|Comment:||Casework and assignments|
|Workload activity:||Prepare for teaching|
|Comment:||Preparation for presentations|
|Workload activity:||Self study|
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.
|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|
|Knutsen, Sverre||Selection of articles - Financial bubbles, crashes and crisis||Handelshøyskolen BI|
|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|
|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|