《西方金融理论文选（双语）》课程教学大纲

1、西方金融理论文选（双语）课程教学大纲课程代码：FIAB2022课程性质：专业必修课程授课对象：金融专业开课学期：春总 学时：54学时 学 分：3学分讲课学时：54学时 实验学时：0学时 实践学时：0学时指定教材：徐涛，现代金融理论文选，苏州大学出版社，2012年参考书目（五号黑体）1. Zvi Bodie, Robert C. Merton, Finance, Pearson Education, 2002. 102. Lawrence S. Ritter, William L. Silber, Gregory F. Udell, Principles of Money, Banking, a

2、nd Financial Markets, Pearson Education, 2002.93. James C. Van Horne, Financial Management and Policy, Prentice Hall,1989, 8th edition4. Charles P. Jones, Investments, John Wiley & Sons, 1997, 6th edition5. 杜朝运，金融投资专业英语，机械工业出版社，2009年3月第1版6. 陈庆柏，金融英语阅读，世界图书出版公司，2003年10月第2版7. Walsh, C. E., Monetar

3、y Theory and Policy, Third Edition, The MIT Press Cambridge Massachusetts, 2010 教学目的：随着中国经济开放度的日益提高，英语在金融业务中的使用越来越广泛，对于金融专业本科毕业生来说，具备用英语就金融业务与知识进行交流的能力是进一步发展的必要保障。此外，学习西方金融理论对于将来进行金融理论研究也是十分必要的。本课程的教学旨在达到以下目的：1、学生掌握必要的金融专业术语的英文表述方式，能够满足正常金融业务的需要；2、学生具备熟练阅读英文金融文献及材料的能力，能够查阅大量的英文文献；3、学生具备运用英文表达与金融实务及理

4、论，能够用英文进行金融现象的分析。第一章 Money and Financial Institution 课时：1周，共3课时教学内容第一节 Concepts and Reading 一、Money versus Barter 教学要点：The importance of moneyWithout money, the economy would have to rely on the more cumbersome barter system to exchange goods and services. Only a primitive mechanism would exist for

5、channeling savings into productive investments. The level of economic welfare would be lower on both counts. 二、Financial Institutions and Markets 教学要点：The function of financial institutions and marketsThe financial institutions and markets have acted as the channel for the funds to flow from the fun

6、ds suppliers to the money demanders.第二节 Financial Instruments, Markets, and Institutions一、Types of Financial instruments教学要点：Direct financial instruments; indirect financial instruments二、Financial markets教学要点：Capital market; money market; foreign exchange market; gold market思考题：1. What are the roles

7、 of money in the economy?2. What are the functions of financial intermediaries and markets?3. Describe the types and functions of financial instruments. 第二章 Money and Financial Institution 课时：1周，共3课时教学内容第一节 Concepts and Reading 一、Functions of Money 教学要点： Money in the EconomyFive major functions of m

8、oney 第二节 TheoriesFinancial Intermediary Theories 一、Credit intermediary theory 教学要点：Financial intermediary is the place for the creditors and loaners to finish their transaction. 二、Credit creation theory 教学要点：Financial intermediary can create credit in addition to absorbing deposit and making loans.

9、三、Credit substitution theory (Gurley & Shaw, 1956) and Bank behavior theory (Tobin) 教学要点：Banks can issue a kind of indirect security to exploit the economies of scale and to diversify risks. 四、Information asymmetry and adverse selection 教学要点：Mainly emphasizes the situation before the loan. Banks

10、 have the advantage of low-cost information collection and screening. 五、Monitoring and execution cost theory 教学要点：Mainly emphasizes the situation after the loan has been made. Compared with the direct financing channel, banks have the advantage in low-cost monitoring and execution. 六、Credit rationin

11、g theory 教学要点：Without a strong banking system, the credit rationing will lead to withered lending transactions. 七、Functional perspective (Merton, 1993) 教学要点：Whats important for banks is their function, not their form. Bank should be an institution good at collecting and processing information.Summar

12、ize: a. Information asymmetry; b. Transaction cost思考题：1. What are the major functions of money?2. How do the main theories interpret the roles of financial intermediaries?3. What is the main meaning of credit rationing theory?第三章 Financial Regulation 课时：1周，共3课时教学内容第一节 Concepts and Reading 一、Financia

13、l regulation 教学要点若干字 二、Financial risk第二节 Financial fragility hypothesis (Minsky) 一、Financial fragility hypothesis 教学要点：There are three kinds of investments: discrete investment, speculative investment and Ponzi investment, with an increased order of riskiness. In the booming period, the speculative

14、investment and Ponzi investment will overwhelm. 二、Causes of financial fragility 教学要点：This hypothesis suggests that financial fragility will emerge endogenously in the economy. Rising debt levels relative to income, together with unsustainable asset prices, lead to a collapse in investment and asset

15、prices, causing a possibly precipitous economic downturn. So financial and banking crises arise endogenously in Minskys vision of contemporary capitalism.第三节 Financial regulation theory 一、Free bank theory 教学要点：Full competition will make financial regulation unnecessary. 二、Market failure theory 教学要点：

16、Market failure caused by externality, monopoly and information asymmetry requires the government to adopt financial regulation. 三、Theory of innovation 教学要点：The financial regulation will bring about financial innovation. The innovation will bring some benefit and loss to the social welfare. So, the r

17、egulators should decide how they should adjust the regulatory system to maximize the social welfare. 四、Contestability theory of multimarket competition 教学要点：To achieve greater stability, the regulators should control the entry and exit of the banking industry. In an economy where the regulators try

18、to compete for the supports, the regulation should be adjusted all the time. 五、Interest group theory of financial development 教学要点：Some groups with private interest will oppose the financial development because it will lead to greater competition in financial and industrial sectors. So financial reg

19、ulation is necessary.思考题：1. Explain the financial fragility hypothesis.2. Whats the major point of view of the free bank theory?3. Why should there be financial regulation according to the market failure theory?4. What is the main idea of theory of innovation?第四章 Financial Innovation 课时：1周，共3课时教学内容第

20、一节 Concepts and Reading 一、Financial innovation（五号宋体） 教学要点Definition of financial innovation 二、Transaction cost 教学要点Definition of transaction cost and its implication in finance 三、 The Trend of Financial Innovation 教学要点：Financial innovation is in the field of financial instruments, financial institut

21、ion, financial transaction, etc.第二节 TheoriesDeterminants of financial innovationTaxes and regulations; Risk transfer and “completing the market”; Transaction costs; Technological improvement; Institutional Demands and Financial Marketing; Agency cost 一、Taxes and regulations 教学要点Miller thought that t

22、he taxes and regulations have led to financial innovation, while Kane thought they can influence each other. 二、Risk transfer and “completing the market” (Duffie and Rahi, 1995; Tufano, 2003) 教学要点Financial innovation can complete the market and transfer risk. 三、Transaction costs (Merton, 1989) 教学要点Th

23、e innovations enable market participants to do something that was already possible in a more efficient manner. 四、Technological improvement 教学要点Technology improvement can boost financial innovation. 五、Institutional Demands and Financial Marketing (Ross, 1989) 教学要点Financial innovation itself is in a c

24、ycle, from customized products to standardized so to meet the institutional demands through financial marketing. In turn, there will be new financial innovation for certain customers. 六、Agency cost (Ross, 1989) 教学要点Financial innovation is aimed to lower the agency cost, such equity options. Whats mo

25、re, financial innovation can force the managers to reveal true information so as to lower the agency cost.思考题：1. Describe the present situation of the financial innovation.2. Explain the transaction costs theorys point of view on financial innovation.3. Whats the agency cost theorys idea on financia

26、l innovation?第五章 Financial Development and Economic Growth 课时：2周，共6课时教学内容第一节 Concepts and Readings 一、Financial development 教学要点Definition of financial development and relevant readings 二、Financial repression 教学要点Definition of financial repression and relevant readings 三、Financial liberalization 教学要点

27、Financial liberalization and relevant readings 第二节 Theories 一、Financial structure and financial development (Goldsmith) 教学要点：Financial structure: the meaning of financial structureFinancial Interrelation ratio (FIR): the concept of financial interrelation ratio 二、Financial liberalization (Shaw) 教学要点

28、：Financial repression and financial deepeningDebt intermediary: in undeveloped economies, money is only the debt intermediary and the enterprises can get funds only through internal finance. 三、Financial repression theory (McKinnon) 教学要点：Financial repression and its consequences 四、Financial restraint

29、 theory (Hellmann, Murdock, Stiglitz, 1997) 教学要点：They take the perspective that competitive markets are not necessarily efficient. They show how a simple set of policies namely deposit rate controls and restrictions on entry into banking create positive incentives that work towards aligning private

30、incentives of banks with socially efficient incentives. Creating temporary “patent protection” of newly entered markets induces banks to invest in deposit taking infrastructure in rural areas. In a word, they think that the government should adopt some policies, such as low interest rate, to encoura

31、ge banks思考题：1. What is the relationship between FIR and economic development?2. Describe the financial liberalization theory and financial repression theory.3. Why was the financial restraint theory put forward?第六章 Money Demand 课时：2周，共6课时教学内容第一节 Concepts and Reading 一、Money demand 教学要点Definition and

32、 measurement of money demand and relevant readings 二、Money velocity 教学要点Definition of money velocity and relevant readings 第二节 Theories 一、Quantity theory of money 教学要点Fisher equationMV= PT V is constant in short-run, depends on institutions, technology that change slowlyY is at full employment level

33、, also constant in short-run 教学要点Cambridge equationMd= KPYMd is depends on income NOT interest rates 二、Liquidity preference theory 教学要点M= L (Y, i)Three motives to holding money: a. transactions motive; b. precautionary motive; c. speculative motiveVelocity fluctuates with the interest rate. Both of

34、them are procyclical 三、Monetarism theory (Modern quantity theory) 教学要点Md= M (P, Yp, U, rm, rb,re, (1/P)* (dP/dt)Md as asset demand. It is determined by both wealth and return relative to other assets.Increase in Yp will increase Md; increase in relative returns of bonds, equity or money will decreas

35、e Md.Money and goods are substitutes.Yp: more important than current income 四、Money utility theory 教学要点Money has been included in the utility theory. So with the maximization approach, we can get the optimal money demand.U= U(C, M)Money has been considered more and more as a kind of asset, not merel

36、y a means of transaction.思考题：1. Describe the classical money demand theories.2. What are the differences between the classical money demand theories?3. Describe the liquidity preference theory.4. Describe the monetarism theory and money utility theory.第七章 Money Supply 课时：1周，共3课时教学内容第一节 Concepts and

37、Readings 一、Money supply 教学要点Definition of money supply and relevant readings. 二、Definition of M0, M1, and M2 教学要点M0 refers to the cash in circulation; M1 refers to M0 plus check account deposit; M2 refers to M1 plus time deposit and savings account deposit.第二节 Theory: 一、Endogenous money supply and r

38、elevant readings 教学要点：Political point of view:Because of the political pressure, the central bank has to satisfy the money demand by supply more money aggregate.Investment point of view:Investment can determine the savings:a. Verticalism (Basil.J.Moore): I: financial asset issuing (deposit & loa

39、n) , S, MSb. Keynes: I: Y, S, MSRead the materials and answer the questions in the textbook. 二、Exogenous money supply 教学要点：Definition of exogenous money supplyClassical economic theories, esp. the quantity theory of money.Implications of exogenous money supplyRead the materials and answer the questi

40、ons in the textbook.思考题：1. What are the components of the different levels of money?2. Explain the meanings of endogenous money supply and exogenous money supply.第八章 Central Bank 课时：1周，共3课时（五号宋体）教学内容第一节 Concepts and Readings（五号黑体） Central bank independence 教学要点Definition of central bank independence

41、Consequence of central bank independence 第二节 TheoryLevels of independence 一、Grilli, Masciandaro, and Tabellini s view (1991) 教学要点：a. “political independence”: institutional characteristics that insulate the central bank from political influence in defining its policy objectives b. “economic independ

42、ence”: those aspects that allow the central bank to freely implement policy in pursuit of monetary policy goals 二、Debelle and Fischers view (1994) 教学要点：a. “goal independence” refers to the central banks ability to determine the goals of policy without the direct influence of the fiscal authority. b.

43、 “instrument independence” refers only to the central banks ability to freely adjust its policy tools in pursuit of the goals of monetary policy. 三、Rogoffs Conservativism Central Banker Theory: 教学要点：When the central banks weight on inflation exceeds that of the elected government, the central bank i

44、s described as a Rogoff-conservative central bank (Rogoff 1985). 四、Objective Maximization Function Theory 教学要点：An alternative way to model central bank independence is to view the central bank as having its own objectives, but it must also take into account the governments objectives when deciding o

45、n policy. If actual policy is set to maximize a weighted average of the central banks and the governments objectives, the relative weight on the central banks own objectives provides a measure of central bank independence. With complete independence, no weight is placed on the governments objectives

46、; with no independence, all weight is placed on the governments objectives. 思考题：1. What are the reasons for central bank independence?2. What are the meanings of central bank independence?3. How can central bank independence be achieved?第九章 Central Bank as the Lender-of-Last-Resort 课时：2周，共6课时教学内容第一节

47、 Concepts and Readings Lender-of-last-resort 教学要点Definition of lender-of-last-resort and its implication. Relevant readings.第二节 Theory: The classical doctrine一、Thornton (1802) and Bagehot (1873)s view 教学要点Lend only against good collateral (Solvent banks)Lend at a penalty rate (Illiquid banks)Announc

48、e readiness to lend without limits (Credibility)二、Other views 教学要点After the panic that followed the Overend - Gurney failure (1866), LLR operations became standard practice, first in the UK (Barings crisis, 1890) then in continental Europe (novel by Ken Follett: “A dangerous fortune”.)Bordo (1990) p

49、rovides historical evidence of the use of LLR functions as a way to mitigate banking crises.Timberlake (1984) shows that US private clearing houses played a LLR role during the national banking era (1857-1907), before the creation of the FED and the discount window (1913) Calomiris (1999), among man

50、y others, questions the role of the IMF as an international LLR.第三节 Theory: Criticisms to the Classical Doctrine一、Goodhart (1985)s view 教学要点Impossibility of clearly drawing a line between illiquid and insolvent banks.二、Solow (1982) s view 教学要点Central Bank also responsible for stability of the financ

51、ial system -sometimes rescue insolvent banks -moral hazard三、Kaufman (1991) s view 教学要点Public intervention subject to political pressure and regulatory capture. Discount window = disguised means to bail out insolvent banks.四、Goodhart - Huang (1999) s view 教学要点Trade-off between contagion risk and bank

52、s moral hazard.“Rescue insolvent banks above a certain size(Too Big To Fail) + random intervention (Constructive Ambiguity).”五、Freixas (1999) s view 教学要点Make intervention conditional on the amount of uninsured debt issued by the distressed bank: “Constructive ambiguity limits moral hazard.”六、Goodfri

53、end and King (1988) s view 教学要点(a) Monetary Policy (aggregate liquidity)(b) Banking Policy (interventions on individual banks)Argue that with modern interbank markets, banking policy has become redundant.“A solvent bank cannot be illiquid”LLR could be replaced by private Lives-Of-Credit (LOC) servic

54、es (Goodfriend-Lacker, 1999)LOC have an explicit contractual character:Maximum loan and interest rate specified in advance.A fee is paid up-front by the borrower.By contrast LLR policy is not contractual :(1) No fee is paid ex-ante(2) Loan granted at the discretion of the Central Bank(3) Commitment

55、problem (political pressure, conflict of interest with banking supervisors).思考题：1. What are the advantages and disadvantages for the central banks to be the lender-of-last-resort?2. What is the proposed alternative for the lender-of-last-resort?第十章 Transmission Channels of Monetary Policy 课时：2周，共6课时教学内容第一节 Concepts and Readings 一、Monetary pol