Académique Documents
Professionnel Documents
Culture Documents
February 6, 2017
1
Class teaching
The plan of the course is quite intense as it is, hence there will be no time for students presentations.
However, all students are strongly encouraged to actively participate in class. You can interrupt me at any
time, to ask for clarifications, make comments, express agreement or disagreement, and the like,
There is no textbook for the course. Before each class, I will post a handout for that class. This handout
will contain all the information you need. However, your physical presence in class is fundamental. I might
emphasize and expand on some parts of a handout and instead skip on other parts. If you do not come to class,
you will not be able to understand what is important and what is less important, and might miss important
discussions. At the end of the course, I cannot provide a list of the paragraphs we have skipped or downplayed
and of those that we have emphasized and expanded.
2
This is the tentative program for the course. Additional items will be added along the way
Part 1: Preliminaries
1. Nominal and real interest rates
2. The monetary base and the money supply process
3. The Fed and the Ecb
Part 4: The evolution of the banking system and money markets before the crisis
14. The economics of structured finance
15. Credit default swaps
16. The emerging importance of dealer banks
17. Shadow banking
Part 7: The debate on monetary policy and the banking system in Europe
23. Some terminology: Tier 1 and Tier 2 capital, and the rest
24. The zero lower bound and bank profitability
25. The problem of nonperforming loans
26. Non performing loans in Europe
27. Case study: Non performing loans in Italy
3
28. Banking union and bank resolution
29. Case study: Spain and the cajas
30. Case study: Monte Paschi di Siena
31. Is equity expensive? The bankers new clothes