This course opens with a brief survey of some of the major characteristics, issues, and challenges of financial systems today, and then examines earlier experience with these phenomena. Topics to be examined include: the role of finance
in economic development historically; the relationship between finance and
government, and the extent to which it has changed over time; the lessons from
early stock market, real estate, canal, railroad, and even tulip bubbles, for modern financial systems; the effect of institutions (laws, norms, and culture) and
political systems in shaping the impact of finance, as illustrated by comparisons
between Mexico and the U.S., among other cases. The course also examines the
tools that were developed in earlier epochs to deal with different risks, evaluate
their efficacy, and consider lessons for modern financial regulation. Implications
and lessons for current financial issues will be discussed throughout. Format:
seminar. Evaluation will consist of three short papers, one draft and the final research paper, at least one oral presentation and contributions to class discussions.
Prerequisites: Economics 363, 384 or permission of instructor. Enrollment limit:
19 (expected: 19). Preference will be given to senior Economics majors.