NYU DC ECON-UA 9225 DC1 Financial Crises

Fall 2018

Instructor Information ● John Volpe, Lecturer in Finance and Economics ● I do not have scheduled office hours but will be available before and after each class and by arrangement. Contact me by e-mail to arrange a phone or in-person meeting. ● Cell Phone: 301-938-1734 (only when necessary) ● Available before and after class and by arrangement ● E-Mail Address: [email protected]

Course Information ● ECON-UA 9225 DC1 ● Financial Crises ● This course will examine a series of selected global financial crises, with particular attention to and a detailed investigation of the U.S. (and global) financial crisis of 2007- 2009. ● Prerequisites: Both: (1) ECON-UA 1/9001 Intro to Macroeconomics (or BPEP-UB 2, or ECON-AD 102), and (2) ECON-UA2/9002 Intro to Microeconomics (or ECON-UB 1, or ECON-AD 101) ● Wednesdays, 1:15 pm to 4:15 pm Room B101

Course Overview and Goals Topics covered include: the Great Depression in the United States (1929- 1941); the U.S. savings and loan crises of the 1980s and 1990s; the Mexican financial crisis (1994-1995); the Asian financial crisis (1997-1998); the U.S. financial crisis (2007-2009) and the impact of this financial crisis on various world economies (Ireland, Iceland, Italy, France, Greece, and the United Kingdom). For each of the above-mentioned crises, the origins, economic impact, role of financial institutions, government monetary, fiscal, regulatory and other policy responses, and aftermath will be examined (by the instructor and by individual students) and discussed. The course will be a combination of lecture (including a guest lecture), discussion, outside events, and student presentations.

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Upon Completion of this Course, students will be able to: ● What were the causes of each of the financial crises noted in the syllabus? How were these various financial crises resolved? ● What were the sources, if any, of market failure? ● What emergency measures were taken in response to these financial crises? Were monetary and fiscal policies effective in mitigating the impact of these financial crises on the various economies in question and on the financial institutions involved? ● What regulatory changes were put into place as a result of these financial crises and will they be effective in preventing future financial crises? ● What were the lessons learned and applied as a result of each financial crisis? With respect to the U.S. financial crisis of 2007-2009, what was the impact on financial institutions and on the U.S. economy of: shadow banking; financial derivatives, such as credit default swaps; collateralized debt obligations; government-sponsored entities; securitization; repurchase agreements; credit rating agencies; and other types of financial innovation in mortgage markets?

Course Requirements

Class Participation

Students are expected to be on time for and prepared to participate in all classes, and at all times to be courteous and respectful of the views of other students. Students are expected to participate in assignments noted below.

Assignment 1 Students will be required to attend a lecture/presentation/meeting on a topic related to financial crises (to be determined by the instructor) and write up a summary (worth 5%) of the salient points made by the presenter(s). Every effort will be made to provide students with a choice of presentations, dates/times to accommodate internships, work schedules, and the like. ( Total: 5% of the final grade )

Assignment 2 One term paper (approximately 15 pages in length), properly researched and footnoted, on a topic related to the 2007-2009 financial crisis in the United States or selected European nations, or to the U.S. Great Depression, or to either the Asian or Mexican financial crises, or to the U.S. savings and loan crisis of the 1980s and 1990s, chosen by the student and approved by me . See course outline below for due date. The paper is worth 20% of the final grade. Each student will make an oral presentation of his/her research findings to the class (5% of the final grade). See rubric at the end of the syllabus for the research paper/oral presentation grading criteria. ( Total: 25% of the final grade )

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Assignment 3 Student Presentations . Each student will be required to prepare in written form and deliver orally two summaries of two of the topics of each week’s lecture and discussion. For example, a student might be asked to discuss securitization (one topic) and the Dodd-Frank Act (a second topic). The written summary should be approximately five pages long and must be circulated to the class prior to presenting the topic orally so that students can adequately prepare to discuss the topic in question. Oral presentations should be between 15 and 20 minutes. Each written presentation will be worth 5% and each oral presentation 5%. ( Total: 20% ).

Tests & Quizzes

Two exams based upon the scheduled topics/readings found in the syllabus (below), and a non- cumulative final exam, each of which is worth 15% of the final grade. (Total: 45% of the final grade)

Attendance/participation in classroom discussions (Total: 5% of the final grade).

Assigned Readings

There is no required text for this course. However, students are encouraged to acquire where necessary and read at least some of the supplemental books noted below.

Supplemental Texts: Acharya, Viral and Richardson, Matthew, Restoring Financial Stability: How to Repair a Failed System, NYU Stern School of Business, March 2009 (ISBN: 0470499346). (available for free)

Ben S. Bernanke, The Courage to Act, W.W. Norton & Company, 2015 (ISBN: 978-0-393- 24721-3)

Financial Crisis Commission, “Financial Crisis Inquiry Report,” 2011 (available online)

Timothy Geithner, Stress Test: Reflections on Financial Crises, Broadway Books, 2014 (ISBN: 978-0-8041-3861-1)

Henry M. Paulson, On the Brink: Inside the Race to Stop the Collapse of the Global Financial System, 2011 (ISBN: 10-0446561940)

Peter Wallison, Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis and Why It Could Happen Again, Encounter Books, 2015 ( ISBN:978-1594037702)

Martin Wolf, The Shifts and Shocks: What We’ve Learned – and Still Have to Learn – from the

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Financial Crisis, Penguin Books, 2015 (ISBN: 978-0-14-312763-5)

Additional Readings: The Washington Post has a group of useful articles about the financial crisis. See this online article called, “The Crash: What Went Wrong?”

The New York Times published a list of articles exploring the causes of the financial crisis under the search, “The Reckoning.”

Useful Videos: For a review of the origins and mission of the Federal Reserve, its actions during the post-World War II period, and most importantly for purposes of this class, the Federal Reserve’s response to the financial crisis and its aftermath, see former Fed Chair Ben Bernanke’s lectures at George Washington University found on the Federal Reserve’s Webpage.

See this YouTube video entitled, Timothy Geithner & Henry Paulson: "Reflections on Financial Crises"

For an in-depth discussion of the Asian Financial Crisis, see this YouTube video entitled, “Why the Asian Financial Crisis Happened: Diagnosis, Remedies & Prospects (1998)”

Grading of Assignments The grade for this course will be determined according to the following formula: Assignments/Activities % of Final Grade

Class participation 5%

Quizzes (two + final exam) 15% each, 45% total

Outside Lecture, Meeting 5%

Two Student Presentations 10% each, 20% total

Term Paper 25%

Letter Grades Letter grades for the entire course will be assigned as follows:

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Letter Grade Points Percent

A 4.00 94-100

A- 3.67 90-93

B+ 3.33 87-89

B 3.00 84-86

B- 2.67 80-83

C+ 2.33 77-79

C 2.00 74-76

C- 1.67 70-73

D+ 1.33 67-69

D 1.00 65-66

F .00 Below 65

View Grades

All student grades will be posted on NYU Classes.

Course Schedule

Topics and Assignments

Week/Date Topic Reading Assignment Due

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Week/Date Topic Reading Assignment Due

Spencer Anderson, “A History of the AN OVERVIEW OF THE Past 40 Years in Financial Crises,” FINANCIAL CRISES COURSE International Financing Review, 2000. ● Review of the Syllabus; http://www.ifre.com/a-history-of-the- Overview of the Course past-40-years-in-financial-crises/21 102949.full article ● Outline of Selected Financial Session 1 Matthew Davis, Online Article, Crises from the Great 29-Aug-18 “Common Elements in Financial Depression to the Present: Crises,” National Bureau of Domestic, Foreign, and Economic Worldwide Research, Wednesday, January 4, 2017. ● Similarities and Differences Among Selected Jon D. Stanford, PDF Document, Financial Crises “Six Financial Crises: Are There Common Threads?”

Ben S. Bernanke, “Understanding the Great Depression,” (video in THE GREAT DEPRESSION three parts), Board of Governors of (U.S. 1929-1941) the Federal Reserve System.

● The Statistical Bare Bones Milton Friedman, YouTube Video, “Milton Friedman Explains the

Cause of the Great Depression.” ● Explanations for the Great

Depression: Monetarists, G. Fernandez de Cordoba and Keynesians, Austrians, and Timothy Kehoe, PDF Document, the International View “The Current Financial Crisis: What Discussion and Should We Learn from the Great assignment of Session 2 ● 1929-1932: Fiscal and Depressions of the Twentieth topics for student 5-Sept-18 Monetary Policy Actions to Century?” Federal presentations Counter the Great Depression Reserve Bank of Minneapolis, Research Department Staff Report

421, March 2009. ● The Glass-Steagall Act (The

Banking Act of 1933) Paul Krugman, The Return of Depression Economics and the ● The Great Depression and the Crisis of 2008. W.W. Financial Crisis of 2007-2009: Norton (2009). Comparing and Contrasting Monetary Christina Romer C-Span Video, and Fiscal Policy Actions “Economics Lessons from the Great Depression,” 2013.

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Week/Date Topic Reading Assignment Due

Robert J. Samuelson, Article, “The Financial Crisis and the Great Depression,” The Washington Post, April 20, 2009.

Federal Deposit Insurance Corporation, PDF Document, “The Banking Crises of the 1980s and Early 1990s: Summary and Implications,” Part 1, in History of the Eighties, Lessons for the Future, Volume 1. Washington, DC: FDIC, 1997. Marcel Fratzscher, “Why Are Currency Crises Contagious? A Comparison of the Latin American Crisis of 1994-1995 and the Asian Crisis of 1997-1998,” Weltwirtschaftliches Archiv; Jena 134.4 (Dec 1998): 664-691. THE U.S. SAVINGS & LOAN CRISIS: 1980S AND 1990S, Timothy Geithner, Stress Test: CAUSES AND Reflections on Financial Crises, CONSEQUENCES Chapter 2.

Session 3 THE MEXICAN FINANCIAL Francisco Gil-Diaz, PDF Document,

12-Sept-18 CRISIS: 1994-1995, CAUSES “The Origin of Mexico’s 1994 AND CONSEQUENCES Financial Crisis,” The Cato Journal, Vol. 17, No. 3, Winter 1998.

THE ASIAN FINANCIAL Morris Goldstein, Online Article, CRISIS: 1997-1998, CAUSES “The Asian Financial Crisis,” AND CONSEQUENCES Peterson Institute for International Economics, Policy Brief 98-1, March 1998.

Aldo Musacchio, PDF Document, “Mexico’s Financial Crisis of 1994- 1995,” Harvard Business School , Working Paper 12-101, May 8, 2012.

National Commission on Financial Institution Reform, Recovery and Enforcement, Online Article, “Origins and Causes of the S&L Debacle: A Blueprint for Reform,” July, 1993, -

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Week/Date Topic Reading Assignment Due

pp. 1-76.

Steven Radelet and Jeffrey Sachs, PDF Document, “The Onset of the East Asian Financial Crisis,” Harvard Institute for International Development, March 30, 1998.

Kenneth Robinson, Online Article, “Savings and Loan Crisis: 1980- 1989,” Federal Reserve Bank of Dallas, November 22, 2013.

Federal Deposit Insurance Corporation, PDF Document, “The Banking Crises of the 1980s and Early 1990s: Summary and Implications,” Part 1, in History of the Eighties, Lessons for the Future, Volume 1. Washington, DC: FDIC, 1997. Marcel Fratzscher, “Why Are Currency Crises Contagious? A Comparison of the Latin American Crisis of 1994-1995 and the Asian Crisis of 1997-1998,” Weltwirtschaftliches Archiv ; Jena 134.4 (Dec 1998): 664-691.

Timothy Geithner, Stress Test: Reflections on Financial Crises , Chapter 2.

Francisco Gil-Diaz, PDF Document, “The Origin of Mexico’s 1994 Financial Crisis,” The Cato Journal, Vol. 17, No. 3, Winter 1998.

Morris Goldstein, Online Article, “The Asian Financial Crisis,” Peterson Institute for International Economics, Policy Brief 98-1, March 1998.

Aldo Musacchio, PDF Document, “Mexico’s Financial Crisis of 1994- 1995,” Harvard Business School ,

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Week/Date Topic Reading Assignment Due

Working Paper 12-101, May 8, 2012.

National Commission on Financial Institution Reform, Recovery and Enforcement, Online Article, “Origins and Causes of the S&L Debacle: A Blueprint for Reform,” July, 1993, - pp. 1-76.

Steven Radelet and Jeffrey Sachs, PDF Document, “The Onset of the East Asian Financial Crisis,” Harvard Institute for International Development, March 30, 1998. Kenneth Robinson, Online Article, “Savings and Loan Crisis: 1980- 1989,” Federal Reserve Bank of Dallas, November 22, 2013.

Acharya and Richardson, Restoring Financial Stability: How to Repair a Failed Financial System, ch.1 (“Mortgage Originators and Securitization in the Financial Crisis”), pp. 121-130 (The U.S. AN OVERVIEW OF THE 2007- housing market and mortgage 2009 FINANCIAL CRISIS IN financing – private and public sector THE UNITED STATES finance).

Tobias Adrian and Adam B. ● Origins of the Ashcraft, PDF Document, “Shadow GUEST SPEAKER Financial Crisis Banking: A Review of the Session 4 Literature,” Federal Reserve Bank of (SPEAKER AND 19-Sept-18 ● The Role of Financial New York Staff Reports, Staff SUBJECT TO BE Institutions (Banking and Shadow Report no. 580, October 2012. DETER- MINED) Banking) Martin Neil Baily, Robert E. Litan, ● Risk and Financial and Matthew S. Johnson, PDF Instability in the Financial Document, “The Origins of the System Financial Crisis,” Initiative on Business and Public Policy, The Brookings Institution, November 2008.

Ben S, Bernanke, Online Article, “Causes of the Recent Financial and

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Week/Date Topic Reading Assignment Due

Economic Crisis,” Statement by Ben S. Bernanke, Chairman of the Board of Governors of the Federal Reserve System, before the Financial Crisis Inquiry Commission, Washington, DC, September 2, 2010.

Ben S. Bernanke, Online Article, “Four Questions about the Financial Crisis,” Morehouse College, Atlanta, Georgia, April 14, 2009.

Ben S. Bernanke, Online Article, “Some Reflections on the Crisis and the Policy Response,” Board of Governors of the Federal Reserve System, April 13, 2012.

James Bullard, Christopher J. Neely, and David C. Wheelock, PDF Document, “Systemic Risk and the Financial Crisis: A Primer,” Federal Reserve Bank of St. Louis Review, September/October 2009, 91(5, Part 1), pp. 403-17.

Council of Economic Advisers, Economic Report of the President PDF Document, January 2017, pp. 349-422.

J. Bradford DeLong, Online Article, “The Great Depression from the Perspective of Today, and Today from the Perspective of the Great Depression,” University of Missouri, Columbia, September 2013.

The Economist, Online Article, “Minsky’s Moment,” July 30, 2016.

The Economist, Online Article, “The Origins of the Financial Crisis,” September 7, 2013.

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Week/Date Topic Reading Assignment Due

The Financial Inquiry Commission, PDF Document, “Shadow Banking” chapter 2, pp. 27-37.

Timothy Geithner, Stress Test: Reflections on Financial Crises , Introduction, Chapter 5.

Alan Greenspan, PDF Document, “The Crisis,” Brookings Papers on Economic Activity, Spring 2010.

Jeff Holt, “A Summary of the Primary Causes of the Housing Bubble and the Resulting Credit Crisis: A Non-Technical Paper,” The Journal of Business Inquiry, 2009, 8, 1, pp. 120-129.

Paul Krugman, Video, “The Economic Meltdown: What Have We Learned, if Anything?” February 5, 2010. (video).

William Poole, “Causes and Consequences of the Financial Crisis of 2007-2009,” Harvard Journal of Law and Public Policy, 33.2 (Spring 2010). http://www.harvard-jlpp.com/33-2/42 1.pdf

Zoltan Pozsar, Tobias Adrian, Adam Ashcraft, and Hayley Boesky, “Shadow Banking,” Staff Report, Federal Reserve Bank of New York, July 2010.

Raghuram Rajan, “The True Lessons of a Recession: the West Can’t Borrow and Spend Its Way to Recovery,” Foreign Affairs, May/June 2012. https://www.foreignaffairs.com/articl es/2012-04-20/true-lessons-recessi on

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Week/Date Topic Reading Assignment Due

Robert Shiller, “Banking: Successes and Failures,” Yale University, 2008 (video). http://oyc.yale.edu/economics/econ- 252-08/lecture-13#ch5

Robert J. Shiller, How Today’s Global Financial Crisis Happened and What to Do About It, Perseus Books LTD, 2008.

Philip Swagel, “The Financial Crisis: An Inside View,” Brookings Papers on Economic Activity, Spring 2009.

Anjan V. Thakor, “The Financial Crisis of 2007-2009: Why Did It Happen and What Did We Learn?” Review of Corporate Finance Studies, Sep2015, Vol. 4, Issue 2, pp. 155-205. http://ezproxy.library.nyu.edu:2130/e ds/pdfviewer/pdfviewer?sid=f121f9 de-3156-4 971-a875-1f81d293e71e%40sessio nmgr102&vid=2&hid=111

Philip Wallach, Online Journal Article, “Competing Institutional Perspectives in the Life of Glass- Steagall,” Studies in American Political Development, 28 April 2014), 26-48.

Peter Wallison, “The True Origins of this Financial Crisis,” The American Spectator, February 2009.

Peter Wallison, Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis and Why It Could Happen Again, Chapter 1.

Peter Wallison, “The GSEs, the Financial Crisis, and the Dodd-Frank Act,” Cayman Financial

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Week/Date Topic Reading Assignment Due

Review, 1 st Quarter, Issue 38, January 30, 2015. http://www. caymanfinancialreview.com/2015/01 / 30/the-gses-the-financial-crisis-an d-the-dodd-frank-act/

Martin Wolf, The Shifts and Shocks: What We’ve Learned – and Still Have to Learn – from the Financial Crisis , Chapters 1-4.

Session 5 FIRST IN-CLASS STUDENT

26-Sept-18 EXAMINATION (ONE-HALF PRESENTATIONS CLASS PERIOD)

Acharya and Richardson, Restoring Financial Stability: How to Repair a Failed Financial System, chs. 3 (“The Rating Agencies”), 6 (“Hedge Funds in the Aftermath of the Financial Crisis”), 10 (“Derivatives – the Ultimate Financial Innovation”), 12 (“Short Selling”).

Adam Ashcraft and Til Schuermann, CAUSES OF THE U.S. “Understanding the Securitization of FINANCIAL CRISIS Subprime Mortgage Credit,” Federal Reserve Bank of New York Staff Reports , March 2008. ● Securitization and Its Session 6 https://www.newyorkfed.org/mediali Consequences 3-Oct-18 brary/media/research/staff_reports/s r318.pdf ● The Erosion of Lending Standards Ben S. Bernanke, “The Subprime Mortgage Market,” Remarks at the

Federal Reserve Bank of Chicago, May 17, 2007.

Excerpt from “Fannie Mae, Freddie Mac, and the Federal Role in the Secondary Mortgage Market,” Congressional Budget Office, December 2010.

Kristopher Gerardi, Andreas

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Week/Date Topic Reading Assignment Due

Lehnert, Shane Sherland, and Paul Willen, “Making Sense of the Subprime Crisis,” Brookings Papers on Economic Activity, The Brookings Institution, Fall 2008, pp. 69-145. http://www.brookings.edu/~/media/P rojects/BPEA/Fall-2008/2008b_bpe a_gerardi. PDF

Andreas Jobst, “What Is Securitization?” IMF, September, 2008. https://www.imf.org/external/pubs/ft/f andd/2008/09/pdf/basics.pdf

Richard Rosen, “The Role of Securitization in Mortgage Lending,” Chicago Fed Letter, No. 244, November 2007. https://www.chicagofed.org/publicati ons/chicago-fed-letter/2007/novemb er-244

Rajdeep Sengupta, “Alt-A: The Forgotten Segment of the Mortgage Market,” Federal Reserve Bank of St. Louis Review, pp. 55-71, January/February 2010. https://research.stlouisfed.org/public ations/review/10/01/Sengupta.pdf

Robert Shiller, “Real Estate Finance and Its Vulnerability to Crisis,” Yale University, 2008 (video). http://oyc.yale.edu/economics/econ- 252-08/lecture-12

“Summary Report of Issues Identified in the Commission Staff’s Examinations of Select Credit Rating Agencies,” U.S. Securities and Exchange Commission, July 2008.

Peter Wallison, Hidden in Plain Sight: What Really Caused the World’s Worst Financial

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Week/Date Topic Reading Assignment Due

Crisis and Why It Could Happen Again , chapters 4, 9, 10.

Lawrence J. White, PDF Document, “Credit Rating Agencies: An Overview,” Annual Review of Financial Economics , 6/19/13.

Ben S. Bernanke, The Courage to Act , W.W. Norton & Company, 2015 (ISBN: 978-0-393-24721-3), pp. 248-269.

Timothy Geithner, Stress Test: Reflections on Financial Crises, Chapters 5-6. THE CRITICAL WEEK Lawrence G. McDonald, A Colossal Session 7 (SEPTEMBER 2008): Failure of Common Sense: The 10-Oct-18 LESSONS IN CRISIS Inside Story of the Collapse of POLICYMAKING Lehman Brothers. New York: Crown Business, 2009.

J.S. Stewart, “Eight Days,” The New Yorker, September 2009.

Online Article, “Three Weeks that Changed the World,” The Guardian, December 27, 2008.

Ben S. Bernanke, “Reflections on a Year of Crisis,” Speech Delivered at the Federal Reserve Bank of Kansas City’s Annual Economic Symposium, August 2009.

Ben S. Bernanke, “The Crisis and Policy Response,” Stamp Lecture, Session 8 FEDERAL RESERVE RESCUE London School of Economics, 17-Oct-18 OPERATIONS January 13, 2009. https://www.federalreserve.gov/new sevents/speech/bernanke20090113 a.htm

Ben S. Bernanke, The Courage to Act Part II.

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Week/Date Topic Reading Assignment Due

S.A. Brave and H. Genay, “Federal Reserve Policies and Financial Market Conditions during the Crisis,” Federal Reserve Bank of Chicago, July 2011.

Stephen Cechetti, Money, Banking and Financial Markets, chapter 16 (“The Structure of Central Banks: The Federal Reserve and the European Central Bank”), pp. 401-413.

Federal Reserve Board, Website with Links, “Credit and Liquidity Programs and the Balance Sheet,”; review all links.

Donald L. Kohn, “The Federal Reserve’s Policy During the Financial Crisis and Lessons for the Future,” Speech given at Carleton University, May 2010.

STUDENT Session 9 SECOND IN-CLASS PRESENTATIONS 24-Oct-18 EXAMINATION (ONE-HALF CLASS PERIOD)

Ben S. Bernanke, “Four Questions about the Financial Crisis,” Speech Given at Morehouse College, April THE INTERACTIONS 2009. BETWEEN THE FINANCIAL CRISIS OF 2007-2009 AND “Economic Report of the President,” THE RECESSION OF Council of Economic Advisers, 2009, Chapter 2. 2008-2009 Session 10

31-Oct-18 “Economic Report of the President,” MONETARY POLICY, 2000- Council of Economic Advisers, 2011 2010, Chapter 6.

FISCAL POLICY, 2000- Alan Greenspan, The Age of 2011 Turbulence (2008, paperbound) epilogue (April 15, 2010).

J.B. Taylor, “Getting Back on Track:

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Week/Date Topic Reading Assignment Due

Macroeconomic Policy Lessons from the Financial Crisis,” Federal Reserve Bank of St. Louis, Economic Review, May 2010. pp. 165-176.

Session 11 FIELD TRIP

7-Nov-18 (destination and subject matter to be determined)

Alan S. Blinder and Mark Zandi, Online Article, “The Financial Crisis: Lessons for the Next One,” Center on Budget and Policy Priorities, October 15, 2015.

The Brookings Institution, PDF Document, “Dodd-Frank at Five: A Conversation with Treasury Secretary Jacob J. Lew,” July 8, 2015.

Peter Eavis, “Wall St. Wins a Round in a Dodd-Frank Fight,” The New York Times, December 12, 2014.

Financial Stability Oversight Council, Session 12 THE DODD-FRANK ACT “Annual Report,” 2011, pp. 3-17, Ch.

14-Nov-18 (2010) AND THEREAFTER 6.

Timothy Geithner, Stress Test: Reflections on Financial Crises , Chapter 10.

Carter H. Klein and Lee Dionne, “An Executive Summary of the Dodd-Frank Financial Reform Act,” Jenner & Block, August 2, 2010. https://jenner.com/system/assets/pu blications/273/original/Dodd_Frank_ Financial_Reform_Act_8.2.2010.pdf ?131980 9629

Meghan Milloy, “The Impact of Dodd-Frank 5 Years Later,” American Action Forum, 2015.

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Week/Date Topic Reading Assignment Due

http://americanactionforum.org/dodd -frank

21-Nov-18 Thanksgiving Break - No Class

George C. Bitros, “From Rages to Riches Or what Went Wrong in Greece,” Journal of Economic and Social Measurement , 38 (2013) 5- 39, December 31, 2013. https://www.gpo.gov/fdsys/pkg/ERP- 2017/pdf/ERP-2017.pdf

Nicholas Crafts, “The Eurozone: If Only It Were the 1930s,” VOX: CEPR’s Policy Portal. http://www.voxeu.org/article/eurozo ne-if-only-it-were-1930s

Barry Eichengreen, PDF Document, GLOBAL REPERCUSSIONS “The Irish Crisis and the EU from a OF THE U.S. FINANCIAL Distance,” IMF, January 2015. CRISIS OF 2007-2009 ● Europe Session 13 European Commission, TERM PAPER ● The United Kingdom 28-Nov-18 “Representation in Ireland,” PRESENTATIONS ● Greece http://ec.europa.eu/ireland/key-eu-p ● Iceland olicy-areas/economy/index_en.htm ● Ireland ● Italy Iceland Chamber of Commerce, “Iceland’s Financial Crisis.” http://www.vi.is/files/1350175258Icel andic%20Financial%20Crisis.pdf

James K. Jackson, “Iceland’s Financial Crisis,” Congressional Research Service, March 2010.

Michael Lewis, “When Irish Eyes Are Crying,” Vanity Fair, March 2011.

P. Mauro and Jan Zilinsky, “Greece: An Economic Tragedy in Six Charts,” Peterson Institute for

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Week/Date Topic Reading Assignment Due

International Economics, February 10, 2015. http://blogs.piie.com/realtime/?p=48 20

H.S. Shin, “Reflections on Northern Rock: The Bank Run that Heralded the Global Financial Crisis,” JEP, Winter 2009.

Katy Stoddard, “How Iceland’s Financial Crisis Unfolded,” The Guardian, January 26, 2009. http://www.theguardian.com/world/2 009/jan/26/iceland-crisis-timeline

Martin Wolf, The Shifts and Shocks: What We’ve Learned – and Still Have to Learn – from the Financial Crisis, Chapter 2.

Basel Committee on Banking Supervision, “Progress Report on Basel III Implementation,” Bank for International Settlements, October 2012.

Ben S. Bernanke, The Courage to Act , Chapter 20.

Alan S. Blinder, “Two Cheers for the BASEL I, II, AND III: CAPITAL New Bank Capital Standards,” The Session 14 AND LIQUIDITY REFORMS Wall Street Journal, September 5-Dec-18 POLICY RESPONSES IN THE 2010. EU EU STRESS TESTING Gerald Caprio Jr., “Safe and Sound Banking: A Role for Countercyclical Regulatory Requirements?” Discussion Paper, Department of Economics Williams College, June 2009.

“G10 Central Bank Governors and Heads of Supervision Endorse the Publication of the Revised Capital

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Week/Date Topic Reading Assignment Due

Framework,” BIS, Press Release, June 2004.

“Strengthening the Resilience of the Banking Sector – Consultative Document, BIS, December 2009.

FINANCIAL ARCHITECTURE

Brunnermeier et. al., “The Fundamental Principles of Financial Regulation,” International Center for Monetary and Banking Studies, June 2009, chs. 1-2.

Financial Stability Oversight Council, “Annual Report,” 2012, Ch. 7. http://www.treasury.gov/initiatives/fs oc/Documents/2012%20Annual%20 Report.pdf

Johan Norberg, “Financial Crisis II: European Governments Fail to Learn from History.” Reason Magazine, May 2012.

William A. Sahlman, “Management and the Financial Crisis (“We Have Met the Enemy and He Is Us”), Harvard Business School, 2009.

Session 15 Finals Week - Week of 10-Dec-18

Tests and Quizzes ● First Examination: September 26 ● Second Examination: October 24 ● Final Examination: December 12

Course Materials

Required Textbooks & Materials ● No required Text

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Optional Textbooks & Materials

● See Syllabus for suggested supplementary readings

Resources ● Access your course materials: NYU Classes (nyu.edu/its/classes) ● Databases, journal articles, and more: Bobst Library (library.nyu.edu) ● Assistance with strengthening your writing: NYU Writing Center (nyu.mywconline.com) ● Obtain 24/7 technology assistance: IT Help Desk (nyu.edu/it/servicedesk)

Course Policies

Attendance and Tardiness Study abroad at Global Academic Centers is an academically intensive and immersive experience, in which students from a wide range of backgrounds exchange ideas in discussion- based seminars. Learning in such an environment depends on the active participation of all students. And since classes typically meet once or twice a week, even a single absence can cause a student to miss a significant portion of a course. To ensure the integrity of this academic experience, class attendance at the centers is mandatory, and unexcused absences will affect students' semester grades. Students are responsible for making up any work missed due to absence. Repeated absences in a course may result in failure. At all Global Academic Centers, unexcused absences will be penalized with a two percent deduction from the student’s final course grade (for courses that meet once per week; for courses that meet twice per week, it is a one percent reduction per missed class).

To seek an excused absence for medical reasons, students must use the online absence reporting form within 24 hours of their first missed class. Students may be required to produce a doctor’s note with that day’s date, especially if the student has missed any classes already that semester or if exams/presentations/papers occurred in the missed class.

Non-medical absences must be discussed with the Academic Staff at least 7 days before the missed date(s) in question. If faculty members do not receive notification of an excused absence, the student has not procured an excused absence.

NYU Washington, DC expects students to arrive to class promptly (both at the beginning and after any breaks), to be attentive, and to remain for the duration of the class. If full class attendance and participation becomes a problem, it is the prerogative of each lecturer to apply the rule for unexcused absences, which may include a two percent deduction from the student’s final course grade.

Students are responsible for making up any work missed due to absence. This means they should initiate email and/ or office hour discussions to discuss any missed lectures and assignments and arrange a timeline for submitting missed work.

Final exams must be taken at their designated times. Final exams may not be taken early, and students should not plan to leave Washington, DC before the end of the finals week.

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Please note that for classes involving a field trip or other external visit, transportation difficulties are never grounds for an excused absence. It is the student’s responsibility to arrive at the announced meeting point in a punctual and timely fashion. Staff members may always be reached by cell phone for advice regarding public transportation.

Late Assignment

1) Written work due in class must be submitted during the class time to the professor. 2) Late work should be emailed to the faculty as soon as it is completed. 3) Late work will be reduced for a fraction of a letter grade (e.g., A to A-, A- to B+, etc.) for every day it is late, including weekends. 4) Written work during the semester that is submitted 5 days after the submission date (including weekends) without an agreed extension fails and is given a zero. 5) Students who arrive to class late for an exam do not have automatic approval to take extra time to complete the exam. 6) Students who miss an exam (including the final) without previously arranged permission will receive a zero on that exam. 7) Assignments due during finals week that are submitted more than 3 days without previously arranged extensions will not be accepted and will receive a zero. Any exceptions or extensions for work during finals week must be discussed with the Site Director.

Incomplete Grade Policy An “incomplete” is a temporary grade that indicates that the student has, for good reason, not completed all of the course work. This grade is not awarded automatically nor is it guaranteed; rather, the student must ask the instructor for a grade of “incomplete,” present documented evidence of illness, an emergency, or other compelling circumstances, and clarify the remaining course requirements with the instructor.

In order for a grade of “incomplete” to be registered on the transcript, the student must fill out a form, in collaboration with the course instructor and the academic administration at the site; it should then be submitted to the site’s academic office. The submitted form must include a deadline by which the missing work will be completed. This deadline may not be later than the end of the following semester.

Academic Honesty/Plagiarism

As the University's policy on "Academic Integrity for Students at NYU" states: "At NYU, a commitment to excellence, fairness, honesty, and respect within and outside the classroom is essential to maintaining the integrity of our community. By accepting membership in this community, students take responsibility for demonstrating these values in their own conduct and for recognizing and supporting these values in others." Students at Global Academic Centers must follow the University and school policies.

The presentation of another person’s words, ideas, judgment, images, or data as though they were your own, whether intentionally or unintentionally, constitutes an act of plagiarism.

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NYU Washington, DC takes plagiarism very seriously; penalties follow and may exceed those set out by your home school. All your written work must be submitted as a hard copy AND in electronic form to the lecturer. Your lecturer may ask you to sign a declaration of authorship form.

It is also an offense to submit work for assignments from two different courses that is substantially the same (be it oral presentations or written work). If there is an overlap of the subject of your assignment with one that you produced for another course (either in the current or any previous semester), you MUST inform your professor.

For guidelines on academic honesty, clarification of the definition of plagiarism, examples of procedures and sanctions, and resources to support proper citation, please see:

NYU Academic Integrity Policies and Guidelines

NYU Library Guides

Disability Disclosure Statement Academic accommodations are available for students with disabilities. Please contact the Moses Center for Students with Disabilities (212-998-4980 or [email protected]) for further information. Students who are requesting academic accommodations are advised to reach out to the Moses Center as early as possible in the semester for assistance.

Religious Observances Students observing a religious holiday during regularly scheduled class time are entitled to miss class without any penalty to their grade. This is for the holiday only and does not include the days of travel that may come before and/or after the holiday.

Students must notify their professor and the Washington, DC Academics team in writing via email at least 7 days before being absent for this purpose.

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