Financial Crises: A Critical Analysis

This subject has the following teaching availabilities in 2016:

Approximately 2.5 hours of personal study per hour of class time is require to achieve a satisfactory level of performance.

EITHER ECON90024 Financial Economics OR ECON90011 Financial Economics

OR

ECON90033 Quantitative Analysis of Finance I and

ECON90034 Economics of Finance and FNCE90047 Financial Markets and Instruments and

FNCE90016 International Financial Management and

EITHER ACCT90002 Financial Statement Analysis OR ACCT90004 Accounting for Decision Making

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This course examines financial crises and panics throughout history and the lessons that policy makers and market participants should draw from past events. Crises studied may include the Dutch tulip bubble, the South Sea Bubble, the Crash of 1929, the Great Depression, Junk bonds, the Asian financial crises, LTCM, Enron, and the Global Financial Crisis. We will examine the causes, events, and consequences of these crises on the participants and the economy in general. A particular emphasis will be placed on the policy implications one can draw from these periods: what types of regulation work, and what does not work.

On successful completion of this subject students should be able to:

• Explain the background to, progression of and resolution to selected financial crises;
• Develop a sound knowledge of the major crises examined in the subject;
• Explain how these crises affected the global economy and markets in the long- and short-run;
• Critically analyse which policy measures helped to prevent future crises and which were ineffective.

• One written assignment totalling 4000 words due mid-semester (40%)
• 3 hour end of semester exam (60%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication
• Written communication
• Problem solving
• Critical thinking
• Evaluation of data
• Ability to draw conclusions from disparate empirical evidence