1. Why Finance?
Monetary Principle (ECON 251)
This lecture provides a quick historical past of the younger subject of monetary concept, which started in enterprise colleges fairly separate from economics, and of my rising curiosity within the subject and in wall road. A cornerstone of ordinary monetary concept is the environment friendly markets speculation, however that has been discredited by the monetary disaster of 2007-09. This lecture describes the sorts of questions normal monetary concept nonetheless solutions nicely. It additionally introduces the leverage cycle as a critique of ordinary monetary concept and as an evidence of the disaster. The lecture ends with a category experiment illustrating a scenario wherein the environment friendly markets speculation works surprisingly nicely.
00:00 – Chapter 1. Course Introduction
10:16 – Chapter 2. Collateral within the Normal Principle
17:54 – Chapter 3. Leverage in Housing Costs
33:47 – Chapter 4. Examples of finance
46:13 – Chapter 5. Why Examine finance?
50:13 – Chapter 6. Logistics
58:22 – Chapter 7. A Experiment of the Monetary Market
Full course supplies can be found on the Yale On-line web site: on-line.yale.edu
This course was recorded in Fall 2009.