Graduate level, 7.5 hp (ECTS)
A key question in the research on financial and monetary systems is whether they leadto economic growth and modernization - or rather - in which cases financial systemsare able to do so and in which cases they do not. The course deals with the criteriathat are assumed to lead to well-functioning monetary and financial systems both intheory and in practice, both present and historical.From the early 1990s (after the EMS crisis) until the 2007–2008 crisis, ideas about theimportance of financial systems for economic growth circulated in many parts of theworld. Leading academics and institutions, such as the World Bank, the OECD andothers, saw the financial system as a key to economic growth and development.However, this positive attitude towards the role of the financial system quickly endedwith the outbreak of the 2007/08 crisis. Many countries still suffer from the recessionwith increasing debt, low or non-existent growth and poor confidence in the future.The aim of this course is to understand these contradictory views on financial andmonetary systems as necessary for economic growth and development, but at thesame time how financial and monetary systems can, under certain conditions, lead toinstability and crises.