Money/Banking:EmergingMkts

3 Credits · Level: Graduate, Undergraduate

This seminar aims at helping students understand modern monetary policy in emerging market economies (EMEs) and to grasp the dynamics of banking crises in this group of countries, with special emphasis on Latin America. The seminar addresses, first, the monetary policy institutional underpinnings and how EMEs formulate and execute monetary policy. It also analyses how different exchange rate regimes and the volatility of capital flows affect the conduct of monetary policy. The seminar then turns to financial sector issues, and discusses the importance of financial deepening for economic development, the fundamentals of financial stability and the roots and unfolding of financial crises, as well as the principles and operational aspects of macroprudential policy, considered the new international standard for preventing financial crises. The seminar will be based on lectures, but will also demand participation from students, who will be required to present case studies. Students attending the seminar are expected to be familiar with basic macro-financial concepts. Classes will be based primarily on papers and books’ chapters so no textbook is required. However, some books could provide background for the topics discussed in the seminar. See for example: - Frederic S. Mishkin: “The Economics of Money, Banking, and Financial Markets,” (2015), Eleventh edition. - Stephen Cecchetti and Kermit Schoenholtz: “Money, Banking, and Financial Markets,” (2014), Fourth edition. Evaluation: Grades will be given according to the following three criteria: Class participation 25%: in-class presentation (case studies). Midterm exam 25%: in-class examination. Final exam 50%: take-home examination. SFS graduate students only. All others with permission of the IBD program.