Economic Environment of Business (Master in Banking and Finance Law)

02-10-20 web.xrh 0 comment

UNIVERSITY OF PIRAEUS

SCHOOL OF FINANCE &  STATISTICS

DEPARTMENT OF BANKING & FINANCIAL MANAGEMENT

POSTGRADUATE PROGRAMME

MASTER IN BANKING AND FINANCE LAW

ECONOMIC ENVIRONMENT OF BUSINESS

2nd SEMESTER

 

In the course we discuss the basic parameters of the economic environment in a country.  We place special emphasis on the applications of economic theory, i.e., on the discussion of important historical examples and real-time news.  At the end of the course participants should be able to read the economics sections of newspapers and journals, to follow current economic developments and to have an informed opinion of timely economic topics.  We are especially interested in the legal aspects of economics.

 

Book:

Ν. Gregory Mankiw και Mark P. Taylor. Economics, 3rd Edition, 2017.

Topics

  1. Το Gross Domestic Product

What is a country’s GDP and how do we measure it?

(Α) Mankiw-Taylor, chapter 20.

(Β) International Monetary Fund, World Economic Outlook Database, Eurozone/Greece, October 2019, http://www.imf.org/external/pubs/ft/weo/2019/02/weodata/weoselgr.aspx

  1. Long-Term Economic Development Ι: Capital and Technology.

Why are some countries rich, while others are poor?  Why and how does a country grow?  What is the role of capital and technology?  The Solow model.

(Α) Class notes.

(Β) Paul Krugman, “The Myth of Asia’s Miracle,” Foreign Affairs, November-    December 1994, https://www.foreignaffairs.com/articles/asia/1994-11-01/myth-asias-miracle

  1. Long-Term Economic Development ΙΙ: Institutions, Legal Systems and Culture.

What is the link between the strength of a country’s institutions and its economic development and prosperity?  Theories on the fundamental importance of property rights.  Common law v. civil law.  What is the link between culture and economic development?

(Α) Class notes.

(Β) Acemoglu, Daron, “What Makes a Nation Rich? One Economist’s Big Answer,” Esquire, November 18, 2009, http://www.esquire.com/news-politics/a6637/world-poverty-map-1209/

(Γ) Acemoglu, Daron, and James Robinson.  “Economics versus Politics: Pitfalls of Policy Advice,” Journal of Economic Perspectives, Spring 2013, p. 173-192, https://economics.mit.edu/files/10403

(Δ) La Porta, Rafael, Florencio Lopez-de-Silanes, and Andrei Shleifer.  “The Economic Consequences of Legal Origins,” Journal of Economic Literature, June 2008, p. 285-332, http://faculty.tuck.dartmouth.edu/images/uploads/faculty/rafael-laporta/Economic_Consequences_JEL_final.pdf

(Ε) Guiso, Luigi, Paola Sapienza and Luigi Zingales.  “Does Culture Affect Economic Outcomes?” Journal of Economic Perspectives, 2006, http://faculty.chicagobooth.edu/luigi.zingales/papers/research/does_culture_affect_econ.pdf

  1. Business Cycles.

Why is an economy’s course cyclical, rather than linear?  What can cause a recession?  How can a country cope with a recession; The role of monetary and fiscal policy.  Political aspects of recessions.

(Α) Mankiw-Taylor, chapters 30-31.

(Β) Johnson, Simon.  “The Quiet Coup,” The Atlantic, May 2009, https://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/

(Γ) Cassidy, John.  “The Reihart and Rogoff Controversy: A Summing Up,” The  New Yorker, April 26, 2013, http://www.newyorker.com/rational-irrationality/the-reinhart-and-rogoff-controversy-a-summing-up

(Δ) Krugman Paul, “The Great Recession and Aftermath: A Look Around,” February 3, 2015, https://webspace.princeton.edu/users/pkrugman/ECO348.2.2.15.pdf

(Ε) Krugman, Paul.  “The Not-so-bad Economy,” New York Times, December 7, 2015, http://www.nytimes.com/2015/12/07/opinion/the-not-so-bad-economy.html?mtrref=www.google.gr&gwh=DCA9227DD74F0F9CEE0044F8B6ACFFA2&gwt=pay&assetType=opinion

  1. Antitrust Policy and Regulation.

Why do modern economies have antitrust laws in place? Why does the state regulate natural monopolies?   How do antitrust enforcement and monopoly regulation function?  What is the link between antitrust enforcement and long-term economic development?

(Α) Mankiw-Taylor, chapter 14 and class notes.

(Β) Litan, Robert and Carl Shapiro.  “Antitrust Policy in the Clinton Administration,” in J. Frankel and P. Orszag, American Economic Policy in the 1990s, MIT Press, 2002, p. 435-507,  http://faculty.haas.berkeley.edu/shapiro/antitrust.pdf

(Γ) Krugman, Paul.  “Profits without Production,” New York Times, June 20, 2013,

http://www.nytimes.com/2013/06/21/opinion/krugman-profits-without-production.html?partner=rssnyt&emc=rss&_r=0

(Δ) Krugman, Paul.  “Reckonings; Microsoft: What’s Next,” New York Times, April 26, 2000, https://www.nytimes.com/2000/04/26/opinion/reckonings-microsoft-what-next.html

  1. Open Economies.

Why does the size of a country’s imports and exports matter?  What is the relationship between net exports and saving or investment?  What does it mean that a country lives beyond its means;  How are exchange rates determined?

(Α) Mankiw-Taylor chapter 28.

(Β) Eichengreen, Barry.  “Imbalances in the Euro Area,” UC Berkeley, November

2010, http://eml.berkeley.edu/~eichengr/Imbalances_Euro_Area_5-23-11.pdf