|| ECM1310 |
|| INTERNATIONAL FINANCE POLICY AND FINANCIAL REGULATIONS |
|| 2003/2004 |
|| Dr Mark J Rhodes |
|| Semester 1 |
| Course delivery
|| Lecture || 12 Hours |
|| Seminars / Tutorials || 5 Hours |
|Assessment Type||Assessment Length/Details||Proportion|
|Semester Exam||2 Hours ||80%|
|Semester Assessment|| 2,000 word assignment||20%|
|Supplementary Assessment|| Examination ||100%|
On completion of the module students will be able to
? Explain the rationale for intervention in financial markets both at a national and international level.
? Outline the financial and regulatory structure in the UK and its relationship to other institutions.
? Discuss the interdependence of transnational financial institutions in achieving policy objectives.
? Critically evaluate how financial architecture is drawn from the rationale for regulation.
? Apply the above learning outcomes to the policy challenges of a national or transnational institution.
The module will examine the causes and consequences of market failures in financial services and markets. We will then discuss the rationale for intervention in financial markets both when this serves to address market failures and when intervention is motivated by other factors. The structure and nature of financial regulation in the UK will be used to illustrate how the principles discussed translate into practice. The rationale for intervention when a firm or market faces a crisis also informs our understanding of the structure and activities of international financial institutions such as the world bank and international monetary fund. The second part of the module will discuss the formation and role of these institutions.
** Recommended Text
C Goodhart, P Hartman, D Llewellyn, L Rojas-Suarez, S Weisbrod (1998) Financial regulation; Why, how and where now?
C Briault (2002) Revisiting the rationale for a single financial services regulator
Financial Services Authority, Occasional Paper 16
D W Daimond & P H Dybvig (1983) Bank runs, deposit insurance and liquidity
Journal of Political Economy, Vol.91, No., pp.401-419.
H Evans (2000) Plumbers and Architects A supervisory perspective on international financial architecture
Financial Services Authority, Occasional Paper 4
M Fry (1994) Money, Interest and Banking in Economic Development
2nd edition. John Hopkins
D Llewellyn (1999) The Economic rationale for Financial Regulation
Financial Services Authority, Occasional Paper 1
G M Meier (1989) Leading Issues in Economic Development
5th edition. Oxford
B V Yarbrough & R M Yarbrough (2000) The world economy; Trade and Finance
5th edition. Dryden
This module is at CQFW Level 7