Participating Faculty: John Driffill and Michael Schmertzler
Project Duration: Monday, 25 September to Saturday, 7 October
The course is intended to give the students a better understanding of financial markets through a mixture of readings, classes, discussions, meetings with people who work in the markets, and by observing financial markets at work. They should obtain a critical understanding of finance, including a knowledge of how the markets are supposed to work, channeling savings to people who want to borrow and firms who want to invest to promote an efficient allocation of resources, economic growth and prosperity. And they also understand how and why markets may appear dysfunctional, sources of instability, and contributors to inequality, with their own agenda and political influence. We might reflect on the need for regulation (or not), forms of regulation, and the value of implicit public guarantees. The course should also be about international financial centres, the agglomeration of concentrations of financial activity in a few locations.
The students will meet practitioners in financial markets (in banks, stock markets, foreign exchange markets, and central banks), and visit financial institutions in Singapore and Hong Kong, where the practitioners will explain the institutions that that make up the financial centres and how the markets work. They will have readings and classes on the theory of finance and banking to provide background knowledge and enable them to engage with market practitioners.
The course will last about a week, split between a few days in Singapore, and four in Hong Kong.