Lecture Details :
Financial Theory (ECON 251)
This lecture gives a brief history of the young field of financial theory, which began in business schools quite separate from economics, and of my growing interest in the field and in Wall Street. A cornerstone of standard financial theory is the efficient markets hypothesis, but that has been discredited by the financial crisis of 2007-09. This lecture describes the kinds of questions standard financial theory nevertheless answers well. It also introduces the leverage cycle as a critique of standard financial theory and as an explanation of the crisis. The lecture ends with a class experiment illustrating a situation in which the efficient markets hypothesis works surprisingly well.
Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses
This course was recorded in Fall 2009.
Course Description :
This course attempts to explain the role and the importance of the financial system in the global economy. Rather than separating off the financial world from the rest of the economy, financial equilibrium is studied as an extension of economic equilibrium. The course also gives a picture of the kind of thinking and analysis done by hedge funds.
Other Resources :
Other Economics Courses
- Introduction to Economics,Fall 2011 by UC Berkeley
- Game Theory by Yale
- Econ 2450A Public Economics by Harvard
- Psychology and Economics,Fall 2011 by UC Berkeley
- Erskine Seminars in Economics by University of Canterbury
- International Trade,Fall 2010 by UC Berkeley
- Introductory Game Theory 2007 by University of Canterbury
- Introduction to Environmental Economics and Policy,Fall 2011 by UC Berkeley
- Introduction to Econometrics by University of Oregon
- Monetary Theory and Policy by University of Oregon
» check out the complete list of Economics lectures