Course: Financial Markets (2011) with Robert Shiller Dnatube
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Lec 1 - Introduction and What this Cours ...
"Lec 1 - Introduction and What this Course Will Do for You and Your Purposes" Financial Markets (2011) (ECON 252) Professor Shiller provides a description of the course, including its general theme, the relevant textbooks, as well as the interplay of his course with Professor Geanakoplos's course "Economics 251--Financial Theory." Finance, in his view, is a pillar of civilized society,...
Lec 2 - Risk and Financial Crises
"Lec 2 - Risk and Financial Crises" Financial Markets (2011) (ECON 252) Professor Shiller introduces basic concepts from probability theory and embeds these concepts into the concrete context of financial crises, with examples from the financial crisis from 2007-2008. Subsequent to a historical narrative of the financial crisis from 2007-2008, he turns to the definition of the expected value...
Lec 3 - Technology and Invention in Finance
"Lec 3 - Technology and Invention in Finance" Financial Markets (2011) (ECON 252) In the beginning of the lecture, Professor Shiller reviews the probability theory concepts from the last class and extends these concepts by the central limit theorem. Afterwards, he turns his attention toward the role of financial technology and financial invention within society, in particular with regard to...
Lec 4 - Portfolio Diversification and Su ...
"Lec 4 - Portfolio Diversification and Supporting Financial Institutions" Financial Markets (2011) (ECON 252) In this lecture, Professor Shiller introduces mean-variance portfolio analysis, as originally outlined by Harry Markowitz, and the capital asset pricing model (CAPM) that has been the cornerstone of modern financial theory. Professor Shiller commences with the history of the first...
Lec 5 - Insurance, the Archetypal Risk M ...
"Lec 5 - Insurance, the Archetypal Risk Management Institution, its Opportunities and Vulnerabilities" Financial Markets (2011) (ECON 252) In the beginning of the lecture, Professor Shiller talks about risk pooling as the fundamental concept of insurance, followed by references to moral hazard and selection bias as prominent problems of the insurance industry. In order to provide an explicit...
Lec 6 - Guest Speaker David Swensen
"Lec 6 - Guest Speaker David Swensen" Financial Markets (2011) (ECON 252) 00:00 - Chapter 1. Introduction, Overview, and "Barron's" Criticism of the Swensen Approach to Endowment Management 15:49 - Chapter 2. Asset Allocation 30:38 - Chapter 3. Market Timing 37:16 - Chapter 4. Security Selection 46:02 - Chapter 5. "Barron's" Criticism Revisited 52:57 - Chapter 6. Questions & Answers...
Lec 7 - Efficient Markets
"Lec 7 - Efficient Markets" Financial Markets (2011) (ECON 252) Initially, Professor Shiller looks back at David Swensen's guest lecture, in particular with respect to the Sharpe ratio as a performance measure for investment strategies. He emphasizes the empirical difficulty to measure the standard deviation, specifically for illiquid asset classes, and elaborates on investment strategies...
Lec 8 - Theory of Debt, Its Proper Role, ...
"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...
Lec 9 - Corporate Stocks
"Lec 9 - Corporate Stocks" Financial Markets (2011) (ECON 252) Professor Shiller emphasizes the worldwide importance of corporations by looking at World Bank data for corporate stocks as traded on global stock markets. He, then, turns his attention to the concept of a corporation, elaborating on the role of shareholders, the board of directors, and the Chief Operating Officer. He compares...
Lec 10 - Real Estate
"Lec 10 - Real Estate" Financial Markets (2011) (ECON 252) Real estate finance is so important that it has a very long and complex history. Describing the history of mortgage financing, Professor Shiller highlights the historical development of well-institutionalized property rights for mortgage contracts. Subsequently, he focuses on modern financial institutions for commercial real estate,...
Lec 11 - Behavioral Finance and the Role ...
"Lec 11 - Behavioral Finance and the Role of Psychology" Financial Markets (2011) (ECON 252) Deviating from an absolute belief in the principle of rationality, Professor Shiller elaborates on human failings and foibles. Acknowledging impulses to exploit these weaknesses, he emphasizes the role of factors that keep these impulses in check, specifically the desire for praise-worthiness from...
Lec 12 - Misbehavior, Crises, Regulation ...
"Lec 12 - Misbehavior, Crises, Regulation and Self Regulation Financial Markets (2011) (ECON 252) After talking about human failures and foibles in the last lecture, this lecture is concerned with regulation to minimize the impact of human errors. Professor Shiller outlines five different levels of regulation: Regulation on the firm level, on the level of trade groups, on the regional, the...
Lec 13 - Banks
"Lec 13 - Banks" Financial Markets (2011) (ECON 252) Banks are among our enduring of financial institutions. Their survival in so many different historical periods is testimony to their importance. Professor Shiller traces the origins of interest rates from Sumeria in 2000 BC, to ancient Greece and Rome, up to the Song Dynasty in China between the 10th and the 12th century. Subsequently, he...
Lec 14 - Guest Speaker Maurice
"Lec 14 - Guest Speaker Maurice " Financial Markets (2011) (ECON 252) This is a guest lecture by Maurice "Hank" Greenberg, former Chief Executive Officer at American International Group. Mr. Greenberg starts his lecture with reflections on his time in the U.S. Army during World War II and the Korean War as well as on his first job in the insurance business as a junior underwriter....
Lec 15 - Forward and Futures Markets
"Lec 15 - Forward and Futures Markets" Financial Markets (2011) (ECON 252) To begin the lecture, Professor Shiller elaborates on the difference between forwards and futures and on the role of futures markets to infer future prices for the underlying commodity or financial asset. Generalizing the discussion beyond futures markets to derivatives markets, he assesses the issue of speculation in...
Lec 16 - Guest Speaker Laura Cha
"Lec 16 - Guest Speaker Laura Cha" Financial Markets (2011) (ECON 252) This is a guest lecture by Laura Cha, former vice chair of the China Securities Regulatory Commission and a member of the Executive Council of Hong Kong. In her introductory remarks, Ms. Cha emphasizes career opportunities in the private as well as the public sector of financial markets, and elaborates on her own career...
Lec 17 - Options Markets
"Lec 17 - Options Markets" Financial Markets (2011) (ECON 252) After introducing the core terms and main ideas of options in the beginning of the lecture, Professor Shiller emphasizes two purposes of options, a theoretical and a behavioral purpose. Subsequently, he provides a graphical representation for the value of a call and a put option, and, in this context, addresses the put-call...
Lec 18 - Monetary Policy
"Lec 18 - Monetary Policy" Financial Markets (2011) (ECON 252) To begin the lecture, Professor Shiller explores the origins of central banking, from the goldsmith bankers in the United Kingdom to the founding of the Bank of England in 1694, which was a private institution that created stability in the U.K. financial system by requiring other banks to have deposits in it. Turning his...
Lec 19 - Investment Banks
"Lec 19 - Investment Banks" Financial Markets (2011) (ECON 252) Professor Shiller characterizes investment banking by contrasting it to consulting, commercial banking, and securities trading. Then, in order to see the essence of investment banking, he reviews some of the principles that John Whitehead, the former chairman of Goldman Sachs, has formulated. These principles are the basis for...
Lec 20 - Professional Money Managers and ...
"Lec 20 - Professional Money Managers and their Influence" Financial Markets (2011) (ECON 252) Professor Shiller argues that institutional investors are fundamentally important to our economy and our society. Following his thoughts about societal changes in a modern and capitalist world, he turns his attention to the fiduciary duties of investment managers. He emphasizes the "prudent person...
Lec 21 - Exchanges, Brokers, Dealers, Cl ...
"Lec 21 - Exchanges, Brokers, Dealers, Clearinghouses" Financial Markets (2011) (ECON 252) As the starting point for this lecture, Professor Shiller contrasts the view of economics as the theory of the allocation of scarce resources with the view of economics as the study of exchange. After a discussion of the difference between brokers and dealers, he outlines the history of securities...
Lec 22 - Public and Non-Profit Finance
"Lec 22 - Public and Non-Profit Finance" Financial Markets (2011) (ECON 252) As an introduction to public and nonprofit finance, Professor Shiller reflects on the remarkable financial structures that we have in support of public causes, making possible the achievement of higher goals that transcend individual satisfaction of needs. He gives examples of nonprofits, illustrating how that...
Lec Last - Finding your Purpose in a Wor ...
"Lec Last - Finding your Purpose in a World of Financial Capitalism" Financial Markets (2011) (ECON 252) After reviewing the main themes of this course, Professor Shiller shares his views about finance from a broader perspective. His first topic, the morality of finance, centers on Peter Unger's Living High and Letting Die and William Graham Sumner's What the Social Classes Owe Each Other....
Financial Markets (2011) with Robert Shiller
Source of these courses is Yale
An overview of the ideas, methods, and institutions that permit human society to manage risks and foster enterprise. Description of practices today and analysis of prospects for the future. Introduction to risk management and behavioral finance principles to understand the functioning of securities, insurance, and banking industries.
Yale Website: http://www.dnatube.com/school/yale
COURSE NAME: Financial Markets (2011) with Robert Shiller