M600 - Historical Perspective to Financial Crises

The aim of this course is to analyse the current global financial crisis and some previous paradigmatic financial crises. This course will introduce students to the relevant theory and empirical analysis of financial crises. We will consider historical and econometric analyses of financial crises and their effects, drawing on contemporary and historical evidence. The lectures will cover case studies of particular experiences and the broad evidence as considered by econometric/cliometric studies. Topics will include financial crises of the interwar period; financial crises associated with bubbles in infrastructural investment in more advanced countries (e.g., the dot-com crisis in 2000); those associated with the process of 'catching-up' among more advanced countries (e.g., the 1980s financial problems of Japan); financial crises associated with the process of 'catching-up' of more advanced developing countries (e.g., the 1997 Asian Crisis); recent financial crises in Latin America associated with capital account liberalisation; and the 2007-08 more 'systemic' global financial crisis.