Money, Credit and Banking

Description

Practical information Course ID: FEB13021 Credits: 4 EC Instruction language: English Registration procedure: Via OSIRIS Secretariat: Support Office Business Economics, E2-28, 010-4081200, office.be@ese.eur.nl Course description Content: The 2007/8 global financial crisis and 2011 Euro crisis demonstrate the importance of well functioning financial markets and organizations. In addition, banks play a crucial role in the allocation of capital and credit in the economy. This course teaches you to recognize the common mechanisms behind current and past crises. First, you will conceptually understand why we have a financial system in the first place, what financial institutions do, and how you can understand and recognize even the most obscure and complex institutions. Then we will turn to banks, see why they are special, and better understand the business they are in. As it turns out, their main contributions to society are also the source of the vulnerability, and we study which bank risks are important and how they are measured. Then we will turn to financial markets, and show how banks, money, and credit are connected and created. These processes help shape a financial system that can INHERENTLY lead to crisis periods. We will then use these concepts to better understand how the 21-st century financial system actually works, and apply this to a case study by a investment professional from a lange financial asset manager Main topics of this course are: - Financial systems and the link between money and credit: - Banks - Financial markets - The creation and sudden evaporation of elasticity in the financial system: - Regulations that manage discipline and elasticity in financial institutions and markets Learning goals: - At the end of this course, students should understand the mechanisms through which money and credit markets work, and roles and functions of banks. - Students know these characteristics, how they have contributed to recent crises, and may contribute to future crises. - Students will understand liquidity inside financial institutions and in financial markets. - Students will understand the policies of central banks directed at managing such liquidity, or otherwise Extra: The course consists partially of pre-recorded videos that supplement the lectures. These videos will be available separately and should be watched before these lectures: this should make the lectures shorter and more interactive. Study materials De Haan, J., Schoenmaker, D., & Wierts, P. (2020). Financial Markets and Institutions: A European Perspective (4th ed.). Cambridge: Cambridge University Press. doi:10.1017/9781108643849 Entrance requirements Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Econometrics ECON-DIV, Cursist Econometrics and Operations Research Economics and Business Economics International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Premaster Accounting, Auditing & Control Premaster Economics and Business Period Enrolment periods: Enrolment period: 29 September 2025 until 7 November 2025 23:59 Unenrolment: until 7 November 2025 23:59 Period of education: 27 oktober 2025 until 19 december 2025 Assessment Assessment materials: Academic articles and lecture / tutorial materials Assessments (result in OSIRIS): Test weight: 50; Test weight: 50; Test weight: 100%