2017-18 Academic Catalog

This course provides a historical perspective on financial crises and highlights their main empirical patterns. This course also introduces economic theories of financial crises, in which leverage, moral hazard, mistaken beliefs, and coordination problems play a central role. We will also discuss some policy instruments used to balance risk exposure, such as deposit insurance, collective action clauses, exchange controls, and foreign reserves. Prerequisite: Economics 110 and 111