Course description

Financial bubbles, crashes and crises

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.

Course content

The course will address the following themes:

  • Theories on financial crises
    • Minsky-Kindleberger
    • The Monetarist school
    • Other approaches
  • Domestic debt and sovereign debt crises
  • Regulation and supervision
  • 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 outcome 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.

 

Exam organisation

  • Written exam: 100%