FM447      Half Unit
Global Financial System

This information is for the 2013/14 session.

Teacher responsible

Dr Jon Danielsson OLD 4.20


This course is available on the MSc in Accounting and Finance, MSc in Finance (part-time), MSc in Finance and Economics and MSc in Finance and Economics (Research). This course is not available as an outside option.


Students should have a strong background in microeconomics, and be comfortable with formal arguments.

Course content

This course examines the academic and policy debates on the operation of the global financial system. The course will aim to be topical, but the analysis of the issues will be based on rigorous economic arguments. The course begins with a brief overview of the history of the international financial system. Several theories of financial crises are then developed in some detail, and are assessed by reference to historical experience and the mechanics of speculative of attack, including the current liquidity crisis. Special emphasis is placed on the analysis of coordination failures and their implications for economic policy. The course concludes by analysis of the current liquidity crisis in the context of the models and historical experience discussed earlier in the course.


20 hours of lectures and 8 hours of seminars in the MT. 2 hours of seminars in the LT.

Formative coursework

Students are expected to attempt the problem sets and essay questions set in the classes.

Indicative reading

Most material will be provided by the book Global Financial Systems, by Jon Danielsson, published by Pearson.  Students may also benefit from a review of the material in a microeconomics textbook at the graduate level, such as J Green, A Mas-Colell & M Whinston, Microconomic Theory.


Exam (100%, duration: 2 hours) in the main exam period.

Key facts

Department: Finance

Total students 2012/13: 89

Average class size 2012/13: 17

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Problem solving
  • Application of numeracy skills
  • Specialist skills