Regulatory and Policy Environment
A decade ago this course would probably appear unnecessary. Since the 1980s, policy-makers and
opinion-makers alike were increasingly convinced that modern financial markets should enjoy large
degrees of freedom from governmental regulation. The common sentiment was that the ever more
sophisticated financial instruments should be treated as any other instance of economically-productive
innovation, i.e. that they should not by stifled by conservative bureaucrats.
‘Brutal’ is a rather mild way of describing the way in which global financial markets were awaken from
this sanguine dream of innovation and sophistication during the global catastrophe that started in
2007. Throughout the highly developed world, the response of choice has been to reverse the course
on financial deregulation and subject financial institutions to a much higher level of governmental
scrutiny. Apparently not ashamed of their record, the financial industry has generally responded with
vehement opposition to this regulatory change. As the memory of the financial crisis begins to fade,
these regulatory counterrevolution seems to be gaining speed. (For more information check the syllabus.)
Please check the the syllabus.
Quizzes will constitute 30% of the final grade. Because the importance of "hard facts" is much more
pronounced in an MSc Program (as compared to an MBA), quizzes will be given at the beginning of each session.
They won't be about checking some deep understanding of the topic, but simply whether a student did her assigned readings. The quiz questions will be chosen from a broader list which I will post on Moodle in the morning of the day of the class. The idea here is that you do the readings without knowing the range of questions - and then maybe spend 30 minutes over lunch on the day of the class to double-check things that will actually be on the quiz.
In a small group, your participation is imperative. That's why, as much as 50% of the final grade will be the class participation in Session 1-7 (10% for each session). The participation will be graded by the instructor, the student will see the grade after each session via Moodle.
For Session 8, you will be asked to do a role-play exercise in a group of 2 or 3.The final exercise will constitute 20% of the grade.