"Lec 8 - Theory of Debt, Its Proper Role, Leverage Cycles" Financial Markets (2011) (ECON 252) Professor Shiller devotes the beginning of the lecture to exploring the theoretical determinants of the level of interest rates. Eugen von Boehm-Bawerk names technical progress, roundaboutness, and time preference as the crucial factors. Professor Shiller complements von Boehm-Bawerk's analysis with two of Irving Fisher's modeling approaches, the view of the interest rate as the equilibrium variable in the savings market and the perspective of simple Robinson Crusoe economies on the determination of interest rates. Subsequently, Professor Shiller focuses his attention on present discounted values and derives the price for discount bonds, consols, annuities, as well as corporate bonds. His treatment of the term structure of interest rates leads him to forward rates and the expectations theory of the term structure of interest rates. At the end of the lecture, he offers insights on usurious loan practices, from ancient times until today, and describes the improvements in consumer financial protection that have been made after the financial crisis of the 2000s. 00:00 - Chapter 1. Introduction 01:24 - Chapter 2. Theories for the Determinants of Interest Rates 28:11 - Chapter 3. Present Discounted Values, Compounding, and Pricing Bond Contracts 47:50 - Chapter 4. Forward Rates and the Term Structure of Interest Rates 01:03:29 - Chapter 5. The Ancient History of Interest Rates and Usurious Loans 01:11:08 - Chapter 6. Elizabeth Warren and the Consumer Financial Protection Bureau Complete course materials are available at the Open Yale Courses website: http://oyc.yale.edu This course was recorded in Spring 2011.
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Lec 1 - Introduction and What this Course Will Do for You and Your Purposes
Lec 2 - Risk and Financial Crises
Lec 3 - Technology and Invention in Finance
Lec 4 - Portfolio Diversification and Supporting Financial Institutions
Lec 5 - Insurance, the Archetypal Risk Management Institution, its Opportunities and Vulnerabilities
Lec 6 - Guest Speaker David Swensen
Lec 11 - Behavioral Finance and the Role of Psychology
Lec 12 - Misbehavior, Crises, Regulation and Self Regulation
Lec 14 - Guest Speaker Maurice
Lec 15 - Forward and Futures Markets
Lec 16 - Guest Speaker Laura Cha
Lec 20 - Professional Money Managers and their Influence
Lec 21 - Exchanges, Brokers, Dealers, Clearinghouses
Lec 22 - Public and Non-Profit Finance
Lec Last - Finding your Purpose in a World of Financial Capitalism