Financial crises, either that we are currently in one or about to be in one or some other country is in one, are all the rage in popular media today. More often than not financial crises are the result of bubbles in certain assets classes or can be linked to a specific form of financial innovation. This course will explore theoretical and policy perspective of modern global financial crises in the world. We will review the conflicting evidence about the extent of the harm caused by financial collapses. This course will also provide the students with a good economic and behavioral understanding on the effects of financial crises on the US and global economy. The primary goal of this class is to educate the students to understand the causes of past crises in an economic point of view and to develop a conceptual and policy framework in minimizing the risks of future crises and helping students make informed decisions.
- Identify the context of financial crises.
- Explain the four main types of financial crises (banking, sovereign debt, inflation, and exchange rate crises).
- Analyze the major factors influencing the financial crises and their aftermath.
- Demonstrate the effects of financial crises on the global economy.
- Demonstrate the effects of financial crisis on the US fiscal and monetary policy.
- Measure the social and economic significance of a financial crisis on a country.
- Identify possible lessons that could be useful in avoiding future crises.
- Create an individual plan for sustainable financial future.