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KFIN 2530A - Introduction to regulation

Type d'enseignement : Seminar

Semester : Autumn 2017-2018

Number of hours : 24

Language of tuition : English

Pre-requisite

Strong economic culture.

Course Description

This course discusses why and how public authorities intervene in financial markets. The first part deals with market failures, i.e. the reason why the outcome of free private exchanges may not be efficient. The "invisible hand" of free markets may partly fail due to externalities, the existence of public goods or asymmetric information. The second part of the course discusses the various kinds of public intervention in financial markets in order to mitigate these market failures, comparing their costs and potential benefits. Public authorities may use a large spectrum of instruments, including taxation, balance-sheet constraints, etc. Finally, in the third part, the course will discuss financial crisis and the dream to eradicate what is indeed the worst manifestation of market failures.

Teachers

LANDAU, Jean-Pierre (Professeur associé à Sciences Po)

Pedagogical format

12 sessions of 4 hours.

Course validation

Weighted average of three notes, based on the participation to the course, a mid-term exam and a final exam.

Required reading

The Fundamental Principles of Financial Regulation: Geneva Reports on the World Economy, International Center for Monetary and Banking Studies, June 2009

Additional required reading

Information Economics, U. Birchler and M. Bütler, Routledge, 2007