Objectives and competences
Qualifying student with: comprehensive knowledge of different macroeconomic, microfinancial and other determinants that in the past led to different financial crises, the role of central banks and other relevant actors in prevention and crisis management of financial crises; critical evaluation of existent research on causes and management of financial crises; a critical evaluation of alternative methodological approaches to research of financial crises and independent scientific research in the field; dissemination of the own research findings
Content (Syllabus outline)
The purpose of this course is to study the economics of financial crises with special emphasis on the crisis of 2008 and Euro crisis.
1. Origin and propagation of financial crisis
• Origin and types of financial crises
• Basic characteristics of financial crises
2. Interaction between financial and business cycle
• Models of interaction between the cycles
• Indicators of finanical stess
• Analysis of financial stress spillovers
3. Financial crises and the role of economic policy
• The role of monetary policy
• The role of fiscal policy
• Microprudential and macroprudential policy
• The role of economic polic in financial crises prevention
4. Analysis of recent episodes of financial crises
• The Global financial crisis
• The euro area crisis
Intended learning outcomes - knowledge and understanding
Knowledge base: Qualifying student with: comprehensive knowledge of causes, consequences and management of financial crises, costs to the national economies, and what policies can be undertaken to make them occur less frequently. Ethical issues: is aware of ethical dilemmas by solving economic issues at the scientific level. Analysis: with critical awareness can evaluate different theories and empirical research related to financial crises and their management research; Synthesis: can synthesize theoretical and empirical findings in the research of financial crises and their management and construct a scientific explanation; Application: in problem solving acts independently, with originality and can independently evaluate the results of the findings.
Intended learning outcomes - transferable/key skills and other attributes
Key/Transferable Skills The learner: Learning resources: is able to use different learning resources; Management of information: is able to undertake research tasks autonomously; Autonomy: is independent and self-critical while performing research; Team work: can work successfully in team(s); Application of skills: can operate in complex environment and knows the good practises; Autonomy: acts independently, responsibly and self-critically; Technical expertise: can adapt skills and design or develop new skills/procedures for new situations; Autonomy in skill use: can act in a professional capacity for self/others, with responsibility.
Readings
Reinhart, C. M., Rogoff, K. S. (2011). This Time is Different: eight centuries of financial folly. Woodstock: Princeton University Press.
Forbes, K.J., Rigobon, B. (2002). No Contagion, only Interdependence: Measuring Stock Market Comovements. The Journal of Finance, 57(5): 2223-2261.
Claessens, S., Kose, M. A., Laeven, L., Valencia, F. (2014). Financial Crises, Consequences, and Policy Responses. Washington: IMF.
Holló, D., Kremer M., in Lo Duca M. 2012. CISS – A Composite Indicator of Systemic Stress in the Financial System. ECB Working Paper Series No. 1426.
Apostolakis, G., in Papadopoulos, A. P. (2014). Financial stress spillovers in advanced economies. Journal of International Financial Markets, Institutions, and Money, 32, September 2014: 128-149.
Kremer, M. (2016). Macroeconomic effects of financial stress and the role of monetary policy: A VAR analysis for the euro area. International Economics and Economic Policy, 13: 105-138.
Drugi izbrani znanstveni članki/Other selected scientific articles
