This course focuses on financial crises. Students will learn 1) why financial crises occur, 2) how they impact the economy and 3) what institutions and regulations have evolved to mitigate them. Thankfully, serious financial crises are rare, but their consequences are often felt for centuries. Students will become familiar with the historical crises that gave rise to today’s institutions and regulatory framework and the theoretical models developed to explain past crises that guide policymakers today. Examples include 1) the bank runs that gave rise to our current global regulatory framework and institutions such as the Federal Reserve, 2) sovereign debt and currency crises, 3) the Great Depression and 2008 Global Financial Crises, and 4) stablecoins and their risks.
There are no essential prerequisites. Familiarity with Introductory econometrics, micro- and macroeconomics is helpful.
Readings: All Readings are available online free of charge.
Grades: grades will be based on empirical homeworks (20%), in-class quizzes (30%) and a cumulative final exam (50%).
Description and/or course criteria last updated: August 11 2025
