Course description

The financial sector plays a central role in a modern economy by mobilising savings and distributing capital. At the same time, the financial sector appears to be fundamentally unstable, and the economic history is full of financial crises. This course introduces the most important financial institutions, and their productive role is discussed theoretically and empirically. The weaknesses of the financial system are then discussed theoretically and empirically on the basis of historical examples of financial crises. The questions we ask are why these crises occur, what their repercussions are and what can be done about them. Finally, time will be dedicated to discussing the credit crisis of 2007-2009.

Jonas Vlachos. Office hours: Office hours are during lecture days. Days of morning lectures, office hours are between 13-14. Days of afternoon lectures, office hours are between 9.30-10.30, room: A776, phone: 08- 16 30 46, e-mail:

Veronika Wallinder. Office hours: Mon-Thu, 12.30-13.30, room A491,
phone 08 16 31 12, e-mail:

Course information

Literature: The main textbook is Frederic Mishkin ”The Economics of Money, Banking and Financial Markets, Global Edition”, latest edition, or Frederic Mishkin and Stanley Eakins ”Financial Markets and Institutions, Global Edition”, latest edition.