DEPAUL UNIVERSITY
DEPARTMENT OF ECONOMICS

Emerging financial markets (EFMs) are special in that they lack much of the necessary institutional infrastructure that enables their well-developed counterparts to function smoothly. This course will concentrate on problems inherent in the development of financial markets in transitional economies and in developing sound institutional structures. Some of the major topics we will focus on include: financial repression, financial development, liberalization, asymmetric information problems in financial markets, macroeconomic stabilization policies, the role of government ownership, guarantees and regulation, and institution building. This course will emphasize the economic theory behind financial market development, in general, and apply these theories to understanding and analyzing the particular problems associated with emerging market financial systems and in developing policies to enable them to operate efficiently and soundly.

Syllabus

Lecture Review
  CH 1-3 Fin Repression and Liberalization
  CH 4 Legal Institutions
  Ch 5 Information Problems
  CH 7 Problems with Banks
  Lecture 01MAY- Monitoring and Discipline of Banks
  CH 6 Macroeconomic Stabilization
  CH 8 Financial Crises

Readings

Quiz Solutions
  Quiz 1
  Quiz 2
  Quiz 3
  Quiz 4