Financial Development of World (Provisional)
Course outline
The goal of this course is to understand global monetary and financial issues such as inflation and hyperinflation, deflation and depression, and financial crisis and to draw necessary insights and lessons forupgrading Korean economy.
To this end, the first part of this course addresses the basic theories of monetary and financial institutions from comparative and historical perspective. The second part tries to address policy issues focusing on theprevention of pathological phenomena such as inflation,deflation and financial crises.
Evaluation
The evaluation will be made on the basis of the exam results.
-Mid-exam 30%
-Final exam 50%
-Attendance and Participation 20%
Major Reference books(Reference with * is required reading)
*Mishkin, F. S., The Economics of Money, Banking and Financial Markets 10th ed.
Kindleburger, Manias, Panics and Crashes: A History of Financial Crisis.
Capie, eds. Major Inflations in History
Reinhart and Rogoff (2011), This Time Is Different
Alan Blinder (2013), After the Music Stopped
Geithner (2014), Stress Test
Bernanke (205), The Courage to Act
Part I: Foundation and History
Session 1: Introduction,
Mishkin, chap 1-3
Session 2: Financial Markets
Mishkin, chap. 4-7
Session 3-4: Financial Institutions
Mishkin, chap 8-11
Session 5-6: Central banking (UK, US and Asia3 (Japan. Korea and China)
Mishkin, Chap. 13
TBA for the central banks of Korea, Japan and China
Session 7: Industrial Banking and Investment Banking
Gershenkron (1962), Economic Backwardness in Historical Perspective, Harvard University Press.
Poel eds , Handbook on the History of European Banks,.
Part II: Pathologies and Policies
Session 8-9: Principle and Conduct of Monetary and Financial Policy
Mishkin, chap 14-18, 21
Alan Blinder (2013), After the Music Stopped
Session 10-11: From Inflation to Deflation
(Inflation)
Cagan (1956) in Capie, eds. Major Inflations in History
Bresciani-Turroni(1937), in Capie, eds. Major Inflations in History
Sargent (1982), in Capie, eds. Major Inflations in History
(Deflation)
Shirakawa (2012),Demographic Changes and Macroeconomic Performance: Japanese Experiences
Bernanke (1999) Japanese Monetary Policy: A Case of Self-Induced Paralysis?
Session 12-15: Banking and Financial Crisis around the World
(General)
Mishkin chap. 12
Reinhart and Rogoff (2011), This Time Is Different
(Financial crisis in the US, Europe and Asia)
Bernanke(1983),Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression, AER
Taniguchi, Japan’s banks and the bubble economy of the late 1980s,
Moon, The Causes of the Korean Currency Crisis and Policy Mistake Reexamined, 1999.
(Global and euro crisis: the causes and consequences)
TBA
1