syllabus of international financial institutions and markets to be followed by jagganathan sir on e classes,,,

Financial Institutions and Markets

COURSE OBJECTIVE:

The objective of this course is to acquaint the students with the broad framework of how the various financial markets function in order to fulfill the role they are expected to perform and provide the many services to the participants. The students are also familiarized with different types of financial institutions as well as instruments used in today’s global markets. The focus in the course is to enable them grasp better the current and future trends that are reshaping the global financial system.

The course is structured for 30 lectures( 1 hour each) including Project presentations

I.                   Overview of the World’s Financial System: Importance of financial markets & institutions, functions of financial markets, structure of financial markets, internationalization of financial markets, function of financial intermediaries - problem of asymmetric information: adverse selection and moral hazard, financial intermediaries, financial assets, financial transactions, conflict of interest in financial industry; Brics and beyond; India – past, present and future

 Readings:

Ch 1, 2, 15, 16: Financial Markets & Institutions by Mishkin & Eakins, 2009

Goldman Sachs Research Paper No 66 (November 2001), No 99 (Oct 2003), No 192 (Dec 2009) and Progress report on the building of the BRICS (July 2011)

Goldman Sachs Research paper No 169 (June 2008)

II.                Fundamentals of Financial Markets – interest rates, efficiency of financial markets

Readings:

I.                   Ch 3,4,5,6: Financial Markets & Institutions by Mishkin & Eakins

III      Major worldwide financial Crisis faced over the last century – the great depression     to the recent crisis

Reading:

-Ch 20: Financial Markets & Institutions by Mishkin & Eakins, 2009

IV    Management & Regulation of Banks/other Financial Institutions & markets - Efficiency, Stability and Government Intervention

Reading:

Ch 17, 20: Financial Markets & Institutions by Mishkin & Eakins, 2009

V       Central Banking and Monetary Policy - Structure of central banks: Federal Reserve system in US; European central bank; Tools, goals and targets of monetary policy.

Reading:

Ch 7, 8: Financial Markets & Institutions by Mishkin & Eakins, 2009

     VI          Money markets,      Bond Markets, Stock Markets, Mortgage Markets,

                        Foreign Exchange Markets & International Financial System,

                        Financial Derivatives Market,

                        Reading:

Ch 9-16: Financial Markets & Institutions by Mishkin & Eakins, 2009

VII         Mutual Fund Industry – Growth of mutual funds, structure and types of mutual funds, fee structure, hedge funds, regulation of mutual funds

Reading:

Ch 21: Financial Markets & Institutions by Mishkin & Eakins, 2009    

     VII             Insurance Companies, Pension Funds

                         Readings:

                        Ch.22- Financial markets & Institutions by Mishkin & Fakins, 2009

IX              Investment banks, security brokers, security dealers, venture capital firms, finance companies – role and functions, growth trends

Reading:

Ch 23: Financial Markets & Institutions by Mishkin & Eakins, 2009

            X          Indian Financial Institutions and Markets – An Overview

                        Readings:

                        Contemporary Literature on the subject.

TEXT & READINGS:

• Sharma, Ruchir, “Breakout Nations: In pursuit of the next economic miracle”, Allen Lane, 1^st Edition 2012
• McKinsey Global Institute, “Debt and deleveraging: The Global credit Bubble and its Economic Consequences” Report Jan 2010 - Updated report dated January 2012
• Mishkin, Frederic S and Eakins, Stanley G, “Financial Markets & Institutions”; Pearson Education 6th edition 2011
• Stiglitz, Joseph, “Free Fall – Free markets and the sinking of the global economy”, W. W. Norton and company First Edition 2010
• Swan, Arthur, “How unregulated capital caused the crash of 2008”, Shree Book Centre First Edition 2009
• Krugman,Paul,” The return of depression economics and the crisis of 2008”, W.W. Norton 1^st Edition 2008
• Madura, Jeff, “Financial Markets and Institutions”, Cengage Learning 2008
• Kohn, Meir, “Financial Institutions & Markets”, Oxford University Press, Second edition 2007
• Saunders, Anthony and Cornett, Marcia M, "Financial Markets & Institutions – An Introduction to the Risk Management Approach”, Tata-McGraw-Hall, 3^rd Edition, 2007

Goldman Sachs Research

·         Global Economics Paper No  66: Building better global economics Brics (November 2001)

·         Global Economics Paper No  99: Dreaming with Brics (October 2001)

·         Global Economics Paper No 169: Ten things for India to achieve its 2050 potential(June 2008)

·         Global Economics Paper No 192: Long term outlook for Brics and N-11 post crisis(December 2009)

·         Brics monthly issue No 11/7: A progress report on the building of the Brics (July 2011)

·         Goldman Sachs’s Global Markets Institute, “Markets take their toll on pension funded status”, Report dated 15^th August 2011