11 August 2016
Financial Market Reform in the European Union
The course will focus on the principles and fundamentals underlying the organizational structure and policy reforms being implemented within the European Union as a result of the financial crisis and subsequent Eurozone calamity. A historical review of the economic and financial events of the past decade will form the groundwork for the analysis. The objective of the course is to introduce students to the operations, regulatory framework, and policy tools impacting global financial markets within the European Union. Coverage will include regulatory reforms in the financial sector and the debate about what new directions ECB monetary policy should consider in order to increase the pace of economic growth. On the regulatory side, the basic building blocks for the Banking Union are now set, but the rulewriting and practice of policy implementation have a long way to go. A much sounder financial sector depends on having significantly increased uniformity organized through the EU single rulebook for financial institutions. Homogenous depositor protection and structural arrangements governing failing banks are key parts of the single rulebook framework build by the Banking Union. EU institutional agreement to establish a Single Supervisory Mechanism and a Single Resolution Mechanism for banks has now been reached and institutional framework building is taking place. While the core focus of the Banking Union is countries in the euro‐area, non‐euro‐area countries are also likely to participate. Finally we will look at how transatlantic relations covering financial services regulations can be expected to impact international financial institutions and operation both within the Eurozone and the City of London. Global financial markets require increased EU‐US regulatory cooperation on constructing and implementing regulatory reforms.
The course will include a field trip to the European Commission in Brussels.
The course is suited for students studying political economy or economics, political science, international relations, and international business.
By the end of the course students will demonstrate the ability to: articulate the primary causes and effects of the financial crisis across the European Union; distinguish among the primary macroeconomic policy instruments and tools which were used to combat the economic downturn; and outline the major structural economic reforms and regulatory changes which have been implemented to fundamentally alter and strengthen financial markets and institutions.
EUR 900: Course fee only.