Financial Bubbles and Crises

Overview

1. Causes of bubbles and financial crises
2. Effects of bubbles and crises on the financial system and economy
3. How policymakers respond to bubbles
4. The antidotes to bubbles and crises
5. Timing the market – how investors can ride bubbles and profit from crashes
6. Case studies of famous bubbles and crashes – to include Bitcoin, China bubble of 2015, Eurozone crisis, 2008 global financial crisis, dotcom mania, the Asian crisis, the Japanese bubble, 1987 stock market crash, Great Depression, railway mania, and South Sea bubble.

Learning Objectives

Upon successful completion of this module, students will:

1. understand why financial bubbles and crises occur
2. be familiar with the various policy responses to bubbles and financial crises
3. appreciate the effects of bubbles and crises on the economy and well being
4. be able to appraise critically the investment strategies employed during bubbles and crashes
5. know about the major booms and busts which have occurred throughout time.
6. be familiar with how to write blog posts and use social media to disseminate information

Skills

1. Analytical skills
2. Communication skills – written and oral
3. Critical thinking
4. Digital skills

Assessment

Students must achieve an overall mark of 40% in the module to pass