|| ECM1310 |
|| INTERNATIONAL FINANCE POLICY AND FINANCIAL REGULATIONS |
|| 2004/2005 |
|| 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 Exam||2 Hours ||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.
This module will consider why financial firms and markets are subject to specific and often strict regulation. Discussion then moves to consider how international institutions have emerged to co-ordinate or mimic regulation at a national level.
Rationale for Regulation
Institutional Structure in the UK
Interdependence of Financial Firms and Markets
Bretton Woods - Causes and Consequences
Other International Financial Institutions (IFI)
Roles of IFIs in Protecting Financial Stability
** Recommended Text
D Llewellyn (1999) The Economic rationale for Financial Regulation
Financial Services Authority, Occasional Paper 1
H Evans (2000) Plumbers and Architects A supervisory perspective on international financial architecture
Financial Services Authority, Occasional Paper 4
C Briault (2002) Revisiting the rationale for a single financial services regulator
Financial Services Authority, Occasional Paper 16
M Fry (1994) Money, Interest and Banking in Economic Development
2nd edition. John Hopkins
G M Meier (1989) Leading Issues in Economic Development
5th edition. Oxford
C Goodhart, P Hartman, D Llewellyn, L Rojas-Suarez, S Weisbrod (1998) Financial regulation; Why, how and where now?
B V Yarbrough & R M Yarbrough (2000) The world economy; Trade and Finance
5th edition. Dryden
D W Daimond & P H Dybvig (1983) Bank runs, deposit insurance and liquidity
Journal of Political Economy, Vol.91, No., pp.401-419.
This module is at CQFW Level 7