Module Identifier ECM1310  
Module Title INTERNATIONAL FINANCE POLICY AND FINANCIAL REGULATIONS  
Academic Year 2003/2004  
Co-ordinator Dr Mark J Rhodes  
Semester Semester 1  
Course delivery Lecture   12 Hours  
  Seminars / Tutorials   5 Hours  
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours  80%
Semester Assessment 2,000 word assignment20%
Supplementary Assessment Examination  100%

Learning outcomes

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.

Aims

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.   

Reading Lists

Books
** Recommended Text
C Goodhart, P Hartman, D Llewellyn, L Rojas-Suarez, S Weisbrod (1998) Financial regulation; Why, how and where now? Routledge
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

Notes

This module is at CQFW Level 7