PPT-The Financial Crisis Class 5: Derivatives- Financial WMDs?

What were the contributing factors to the financial crisis How did the crisis begin What did the government do in response We focused mostly on big pictures Discussion so far Dictionary definition financial instrument whose value is derived from one or more other underlying assets. in an Open Economy:. Sweden in the Global Crisis and Beyond. Ralph C. Bryant. Dale W. Henderson. Torbjörn. Becker. November 21, 2011. Sweden is highly open to the rest of the world, dependent on extensive cross-border transactions in goods, services, and financial assets and liabilities. . By: Hong Lai. Sylvia . Zheng. Discussion Topics. Background Information. Greece’s Imports and Exports. Causes of Financial Crisis. Financial Crisis in Greece. How Greece Financial Crisis Affect Other Countries. . 4 Lectures. . 1. The financial crisis of 2007-09. 2. How banking regulation is changing. 3. The euro area crisis and the Italian economy. 4. The new European governance, the ECB monetary policy and theBanking Union. Chapter . 20 of . Macroeconomics. , . 9. th. . edition, by N. Gregory . Mankiw. ECO62. . Udayan. Roy. Chapter Outline. The Financial System: What is it? . Financial Crises: Six common features. Case Study: Great Recession of 2008-9. . Jamil. . Salmi. OECD Conference. 29-30 June 2009. 2. outline of the presentation.... importance of . tertiary education for development. impact of the financial crisis. the way forward. 3. solid evidence from the OECD. What is financial derivative . A financial derivatives . A financial derivative is a financial product that is valued depending on another asset, called the underlying asset.. It is used to protect against and manage risks, and very often also serve arbitrage or investment purposes, providing various advantages compared to securities. . Homework: P. 591 #1. Financial System 101. Channels . funds from borrowers to lenders. . Maturity transformation. . Pools . risk for those who are risk averse. . Allows for diversification.. Equity . Introduction to Derivatives . Agenda. In this session, you will learn . about:. What are Derivatives?. Need for Derivatives. Concept of Underlying Asset. Participants in a Derivative Market. Hedgers. Understand . what derivatives are and how they are used to manage risks.. Understand . how to account for derivatives.. Analyze . whether a hybrid/compound instrument issued for financing purposes . represents a . October 16, 2010. House prices rose rapidly from 2000 to 2006. Subprime mortgages expanded rapidly as well. Increase in house prices slowed down in 2007. Households with excessive debt began to face problems. Joseph E. Stiglitz. March 2009. A Deep and Prolonged Downturn. The first truly global downturn of the modern era of globalization. Downturn in the U.S. will be the most severe since the Great Depression. October 16, 2010. House prices rose rapidly from 2000 to 2006. Subprime mortgages expanded rapidly as well. Increase in house prices slowed down in 2007. Households with excessive debt began to face problems. November 6, 2010. We talked about the economic side of things. Macro: The housing bubble, the stock market crash, and . gov’t. response. Micro: What derivatives are and the role they played in the crisis.. Leeds University Business School . Developing Countries in the Global Financial Crisis: A Minskyan Account. Motivation. Outline. Neoclassical Models of Financial (Foreign Exchange) Crisis . Post Keynesian Theories of Financial Crisis.