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2014/2015 BA-BINBO1339U GLOBE Finance and Financial Institutions in Society
| English Title | |
| GLOBE Finance and Financial Institutions in Society |
Course information |
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| Language | English |
| Course ECTS | 7.5 ECTS |
| Type | Mandatory |
| Level | Bachelor |
| Duration | One Quarter |
| Course period | Second Quarter |
| Timetable | Course schedule will be posted at calendar.cbs.dk |
| Study board |
Study Board for BSc in International
Business
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| Last updated on 03-07-2014 | |
| Learning objectives | ||||||||||||||||||||||||
In order to get a 12 the student must:
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| GLOBE students only. | ||||||||||||||||||||||||
| Examination | ||||||||||||||||||||||||
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| Course content and structure | ||||||||||||||||||||||||
| The primary overall aim of this course is to
bring together the knowledge and skills that the students have
attained from the first five quarters and to allow them to put
their future courses into a context that brings together economic,
political, social and cultural – or, broadly conceived,
institutional – developments. This course will allow the students
to use their foundational skills but it will also force them to
think out of the box, and to consider the often path dependent and
time and space specific character of institutions and
organizations.
The course is not a finance or corporate finance course and it is not a strategy course, but it allows the students to draw on their competencies within these areas. The course provides the students with a critical, contextual and institutional foundation for further study in these fields. Over the last 20-30 years, the international financial sector has developed into an economically highly important as well as a culturally and politically contested industry. In particular, the 2007-2009 financial crisis has stressed the importance of the financial sector as a systemic breakdown was averted only by massive public intervention in financial markets. This intervention has led to other problems such as moral hazard and massive public debt problems in the US and European Union. At the same time global economic and financial imbalances such as increasing inequality and a basic shift in economic power from the Western world to Asia seems to be accelerating. As a result the interplay between the financial industry and society has become topical and much debated. Do we need more regulation of the financial sector, or smarter regulation, or is the problem the exact opposite that too much state intervention in markets have led to moral hazard and irresponsible rent seeking by huge financial actors? At the more general societal level, the crisis has provoked a new confrontation between Keynesian and neo-liberal (and Austrian) approaches to the market, the economy and society in general. Moreover, the focus on share holder value has been questioned along with problems of rising inequality, and more generally the values and the financial industry’s compensation and share of the economy have been hotly debated. The debate on the financial industry, economic and finance theory, regulation, and the role of the state is likely to continue. Competing narratives will struggle to define the future role of finance and business in society. |
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| Teaching methods | ||||||||||||||||||||||||
| Before each class the students will be asked to
relate the class readings to study questions that will then be
debated in class. The students are expected to be well prepared for
each class, and to follow the financial coverage in papers such as
the Financial Times, the New York Times and the Economist during
the run of the course. The students are expected to present and to
debate each others’ presentations in class.
In general, the course is based on • Short introductory lectures • Discussion in class • Student presentations • Guest lectures by invited speakers |
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| Expected literature | ||||||||||||||||||||||||
| Provisional course readings - subject to change:
“25 People to Blame for the Financial Crisis. The good intentions, bad managers and greed behind the meltdown.” Time Magazine: http://www.time.com/time/specials/packages/completelist/0,29569,1877351,00.html#ixzz1OgGVty5k Baker, George & George D. Smith, The New Financial Capitalists. Kohlberg, Kravis Roberts and the Creation of Corporate Value, Cambridge University Press 1998, Chapter 1, pp. 1-44 Bhidé, Amar, “In Praise of more Primitive Finance” in Economists’ Voice, February 2009 Calomiris, Charles, “Banking Crises Yesterday and Today”, Financial History Review, vol. 17, no. 1, 2010, pp. 3-12 Cassidy, John, “What good is Wall Street?”, The New Yorker, November 29, 2010 Coffee, Jr, John C., “A Theory of Corporate Scandals: Why the USA and Europe Differ”, Oxford Review of Economic Policy, Vol. 21, no. 2, 2005, pp. 198-211 Dore, Ronald, “Financialization of the Global Economy”, Industrial and Corporate Change, vol. 17, no. 6, 2008, pp. 1097-1112 Eichengreen, Barry, “The Great Detour: European Money and Banking in the Second Half of the 20th Century”, in Rathkolb, Oliver, Theodor Venus and Ulrike Zimmer, Bank Austria Creditanstalt. 150 Jahre Österreichische Bankengeschichte in Zentrum Europas, 2005 Eichengreen, Barry, “The Crisis and the Euro”, Working Paper, April 2009. http://www.econ.berkeley.edu/~eichengr/crisis_euro_5-1-09.pdf Eichengreen, Barry & Peter Temin, “Fetters of Gold and Paper”, Oxford Review of Economic Policy, Vol. 26, no. 3, 2010, pp. 370-384 Fox, Justin, “Cultural change is key to reform”, Financial Times, 26-03-2010 Goodhart, Charles, “How should we regulate bank capital and financial products? What role for living wills?” Adair Turner et al, The Future of Finance. The LSE Report, London School of Economics and Political Science, London 2010: http://harr123et.files.wordpress.com/2010/07/futureoffinance-chapter51.pdf Hamilton, Stewart & Alicia Micklethwait, Greed and Corporate Failure. The Lessons from Recent Disasters, Palgrave MacMillan: New York 2006. Chapters 2, 3 and 9 Hansen, Making sense of financial crisis and scandal. A Danish bank failure in the era of finance capitalism”, Working Paper, 2011 Ho, Karen, “Disciplining Investment Bankers, Disciplining the Economy: Wall Street’s Institutional Culture of Crisis and the Downsizing of Corporate America”, American Anthropologist, vol. 111, no. 2, 2009, pp. 177-189 James, Harold, The Creation and Destruction of Value. The Globalization Cycle. Harvard University Press, 2009 Johnson, Simon, “The Quiet Coup”, The Atlantic, May 2009, http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/7364/ Jones, Geoffrey, Ivar Kreuger andthe Swedish Match Empire, Harvard Business School Case no. 9-804-078. This text must be purchased and downloaded from http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=804078&referral=2340 Kindleberger, Charles, A Financial History of Western Europe, New York: Oxford University Press 1993, pp. 264-279 Lai, Linda, “The Norwegian banking crisis: Managerial Escalation of Decline and Crisis”, Scandinavian Journal of Management, 10(4): 397-408. Lamoreaux, Naomi, “Scylla or Charybdis? Historical Reflections on Two Basic Problems of Corporate Governance”, Business History Review, vo. 83, (Spring 2009), pp. 9-34 Minsky, Hyman, “A Theory of Systemic Fragility”, in Edward I. Altman & Arnold W. Sametz (eds.), Financial Crises: Institutions and Markets in a Fragile Environment, New York, Wiley 1977, pp. 138-52. Moss, David A., “Reversing the Null. Regulation, Deregulation and the Power of Ideas”, Harvard Business School Working Paper, 10-080, 2010 North, Douglas C., “Institutions and the Performance of Economies Over Time” in Claude Menard & Mary M. Shirley, Handbook of New Institutional Economics, Dordrecht, 2005, pp. 21-30 Punch, Maurice, Dirty Business. Exploring Corporate Misconduct.Analysis and Cases, London: Sage 1996, chapters 1-3, pp. 1-83. This text is included in the compendium. Republican Commissioners on the Financial Crisis Inquiry Commission, Financial Crisis Primer. Questions and Answers on the Causes of the Financial Crisis, December 15, 2010 ( http://republicanleader.house.gov/UploadedFiles/Financial_Crisis_Primer_Final.pdf) Schumpeter, Joseph A., “The Process of Creative Destruction”, in Schumpeter, Capitalism, Socialism and Democracy, 1944. pp. 81-6. Schwartz, Anna, “Origins of the Financial Market crisis of 2008”, Cato Journal, vol. 29, no. 1, pp. 19-23 Smith, George David, Richard Sylla, and Robert E. Wright, “The Diamond of Sustainable Growth” Smith, Roy & Ingo Walter, Governing the Modern Corporation. Capital Markets, Corporate Control, and Economic Performance, Oxford: Oxford University Press 2006, chapter 11, pp. 270-292. Wade, Robert, »From global imbalances to global reorganizations«, Cambridge Journal of Economics, vol. 33, 2009, pp. 539-562. White, Lawrence H., “How did we get into this financial mess?” Cato Institute Briefing Papers, No. 110, November 18, 2008. http://www.cato.org/pubs/bp/bp110.pdf Østrup, Finn, “The Danish Bank Crisis in a Transnational Perspective”, Danish Foreign Policy Yearbook, 2010, pp. 75-112 |
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Last updated on
03-07-2014