Dr Jon Danielsson

This course is available on the MSc in Accounting and Finance and MSc in Financial History. This course is available with permission as an outside option to students on other programmes where regulations permit.

This course is not open to students on the MSc Economics and Managements and students from the following departments: Economics, Finance, Mathematics, and Statistics

Students should have some background in economics, and be comfortable with formal arguments

This course examines the academic and policy debates on the operation of the global financial system. The course will aim to be topical, where the analysis of the issues will be based on economic arguments. The course begins with analysis of systemic risk, followed by an overview of important financial crises and key institutions. The role of cryptocurrencies, central bank digital currencies, fintec and artificial intelligence on the financial system will be discussed. Several theories of financial crises are then developed in some detail, and are assessed by reference to historical experience. The course concludes by analysis of the latest policy and regulatory developments (including Basel III and macroprudential regulations), monetary policy and interest rate normalization and their relationship with inequality, inflation, the current situation in the European Union, the role of China and the Unites States, and finally the impact of Covid-19 and Russia’s invasion of Ukraine on the financial system.

20 hours of lectures and 10 hours of seminars in the MT.

Students are expected to attempt the problem sets and essay questions set in the classes.

Most material will be provided by the book Global Financial Systems (www.globalfinancialsystems.org), by Jon Danielsson, published by Pearson

Exam (100%, duration: 2 hours) in the summer exam period.