Content, progress and pedagogy of the module

Through this module, the student will gain insight into how the financial and economic crisis has posed a number of explanatory challenges to modern macroeconomic theory: how could the financial crisis arise without any warnings? How did a crisis in the financial sector propagate into a real economic crisis?

During the module, the student is introduced to how financial crises can arise. This is done by looking at both historical crises and establishing a theoretical foundation that explains how crises can occur. In addition to examining how financial crises can arise, the link between the financial side of the economy and the real side will also be explored: how does a financial crisis propagate into a real economic crisis?

Based on knowledge and theories about both historical crises and the current crisis, the causes of the crises will be discussed, as well as the possibilities for overcoming the crises.

Learning objectives

Knowledge

The aim is that after the module the student has knowledge of:

• how financial crises can arise.
• how financial instability can occur.
• how financial instability can spread to the real side of the economy.

Skills

The aim is that after the module the student has skills to:

• highlight the link between the financial side and the real side of the economy.
• explain and identify warning signs for an economy.

Competences

The aim is that after the module the student has the competencies in:

• set up and understand financial models.
• assess and discuss how an economy can recover from a crisis.

Type of instruction

For information see §17.

Exam

Exams