Development and Structure of the World Financial System (4 op ma 12-14)

Compensations

Korvaavuudet: oj 6, 8.1

Content

The suggested course would give an overview of the long-term development of the world capital markets from a political and economic history point of view. The cornerstone of the present global financial system is the free movement of capital. In this respect it bears rather close resemblance to the liberal world financial order in the pre-World War I period. Between the two periods international capital markets were relatively strictly regulated by national governments and international agreements.

Devotion to liberal world economic and financial order has also raised criticism. Free movement of capital over national borders enables efficient allocation of capital at the global level and promotes economic growth. However, there is less room for independent political decision making at the national level. Moreover, in the allocation process the capital markets also pay only a little attention for social aspects.

The aim of this course would be to explain the birth and development of the present world financial system. It would also assess the impact of the global financial system on economic growth and international economic and political relations. On the other hand, it would evaluate the influence of the political developments and balance of power between difference interest groups on the willingness of the national governments to regulate financial markets.

Course work and forms of study

The exam will take place on December 1st in the same lecture room, same time.