The Structure & Regulation of Financial Markets - ECO00013H

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  • Department: Economics and Related Studies
  • Module co-ordinator: Prof. Peter Spencer
  • Credit value: 20 credits
  • Credit level: H
  • Academic year of delivery: 2019-20

Related modules

Co-requisite modules

  • None

Prohibited combinations

  • None

Module will run

Occurrence Teaching cycle
A Autumn Term 2019-20 to Spring Term 2019-20

Module aims

This module advances the student's understanding of financial market failure and regulation, with particular reference to the British financial system. It introduces modern theories of asymmetric information and applies them to financial institutions, relating the analysis to current developments.

Module learning outcomes

On completing the module a student will be able to:

  • Appreciate the nature of asymmetric information and its implications
  • Understand the reasons for financial market failure and regulation
  • Argue the case for and against industrial self-regulation
  • Apply theories of agency capture and moral hazard to the regulator
  • Have a broad institutional knowledge of the UK and US financial systems and the main differences between these and continental financial systems

Assessment

Task Length % of module mark
University - closed examination
The Structure and Regulations of Financial Markets
3 hours 100

Special assessment rules

None

Reassessment

Task Length % of module mark
University - closed examination
The Structure and Regulations of Financial Markets
3 hours 100

Module feedback

Information currently unavailable

Indicative reading

The basic text for the module is:

  • Spencer, P D. (2000). The Structure and Regulation of Financial Markets. Oxford University Press.

Required reading: A good introduction to this material is provided by:

  • Mishkin, F S. (2002). The Economics of Money, Banking and Financial Markets. 6th ed. New York: Addison-Wesley. Chapter 8 provides a useful introduction to the theory of asymmetric information and the way it can be applied to financial institutions. Chapters 10-12 provide a useful description of the US system, including the 1999 Financial Services Modernisation Act.
  • Pagano, M. & Roell, A. (1992). Failure of Financial Markets in Newman, Milgate and Eatwell (eds) The New Palgrave: Dictionary of Money and Finance. Macmillan.
  • Davis, E P. (1993) Theories of Intermediation, Financial Innovation and Regulation. National Westminster Bank Review. May, 41.



The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.