1:30 PM - 2:50 PM
Course ID
Spring 2018
Certificate Program
Economic Policy

This course has an ambitious goal – to investigate both the tools of risk management at the firm level
through hands-on training and practice, and the lessons of macroeconomic or systemic risk through
examination of financial crises throughout history. These lessons are important – whether it is the South
Sea Company crisis of 1700s or the mortgage debt crisis in the United States in the 2000s, financial crises
have shaped our world. Understanding history is the first step towards intelligent policy.
To examine the financial and economic history we will read some of the classic (and also some of the
newer) texts in this area:

A Monetary History of the United States, 1857-1960 by Milton Friedman & Anna Jacobson Schwartz
Manias, Panics, and Crashes by Charles P. Kindleberger (for a history of financial panics)

Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay (for a history of
the 18th century South Sea Bubble in Britain and the Sword Blade Bank and Mississippi
Company in France)

This Time is Different – Eight Centuries of Financial Folly by Carmen Reinhart & Kenneth Rogoff
(for why this time is not different – financial folly has a long history)

Fragile by Design by Charles Calomiris & Stephen Haber (for a cogent and disciplined analysis of
banking systems across time and across countries – US, Canada, UK, Mexico, and Brazil)