Public Finances and Financial Markets 4.17.E.469

Public Finance is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones by using financial markets. But, the mutual interdependence of private banks and the government caused increasing strain on national budgets in Europe. European governments had to intervene serveral times to prevent private banks from failing.
Following topics and institutions are discussed during lectures and exercises:
* financial system, the role of fiscal- and monetary policies
* public finance: definition and functions
* state budget
* local budget
* budget revenue and expenditures
* budget deficit and public debt
* money creation by Central Banks
* Public development and business banks
* mutual funds, public pension funds
* European Stability Mechanism (ESM)
* Money laundering, task forces
* Challenges for central banks by cryptocurrencies and global IT- giants, social media- platforms to protect national and global financial systems

Supplementary literature

Falzon, Joseph: Bankperformance, Risk and Securitization (Regulatons) Swizerland 2013^ Michie, Jonathan/ Blasi, Joseph/ Borzaga, Carlo: The Oxford Handbook of Mutual, Co-operative and Co-owned Business, UK 2017 Fitoussi, Jean-Paul/ Creel Jerome: How to Reform the European Central Bank, London 2002 Bonin, John P./ Szekely, Istvon P.: The Development and Reform of Financial Systems in Central and Eastern Europe, Vermont USA 1994 Colombo, Emilio/ Driffill, John: The Role of Financial Markets in the Transition Process, Milano – New York 2003

Type of course

obligatory courses
foreign languages
obligatory courses

Mode

(in Polish) Realizowany w terenie

Course coordinators

Detlev Hummel
Robert Poskart

Learning outcomes

Public finance and financial markets - knowledge of basic terms. Role of state budget and fiscal balance. Structure of financial system. Knowledge of functioning of financial intermediaries.

Assessment criteria

Lecture: Written exam.
Exercises: assessment of 6 projects.

Practical placement

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Bibliography

Allen et al.: The International Handbook of Public Financial Management, London 2013
Francke, Hans H./Ketzel, Eberhart/Kotz, Hans H.: Handbook of Public Credit in Europe, Berlin, New York 2000
Finkelstein, Ben: Politics of Public Fund Investing, New York 2006
Pepino, Silvia: Sovereign Risk and Financial Crisis, The International Politcal Economy oft he Eurozone, London 2015
Gaillard, Norbert: When Sovereigns go Bankrupt – A Study on Sovereign Risk, London 2014
Cavallo et al.: Fiscal Policies in High Debt Euro-Area Countries, Swizerland 2018
Andritzky, Jochen: Sovereign Default Risk Valuation – Implications of Debt Crises and Bond Restructurings, Berlin New York 2006
Mishkin, F.: The Economics of Money, Banking and Financial Markets, 2016
Witzany, Jiri: Credit Risk Management, Pricing, Measurement and Modeling, (Regulation) Prag 2017
Docherty, Adrian/ Viort, Franck: Better Banking – Understanding and Addressing the Failures in Risk Management, Governance and Regulation

Additional information

Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system:

Description of 4.17.E.469 in USOSweb