Financial crises appeared with the creation of the first capital markets in the Netherlands in the 17th century and they have been with us ever since. Many of these crises began with the formation and bursting of asset bubbles. When bubbles burst, banks and the financial sector amplify the shock to the wider economy. This course surveys many of these bubbles from the 17th century to the most recent.
 
Teaching goals: The purpose of this course is to learn how societies responded to bubbles:  what "lessons" did they draw from them, moral, political, and economic? How did they attempt to apply these lessons? How were these lessons manifested and propagated in culture? The course will also develop students' skills in working with primary sources, statistics, and presentations.

Contact information 
Instructor: Jon Jucovy
Email: [email protected]
Webpage: https://www.jjucovy.org

Rules
1. You must be sat at your desk with necessary materials when the late bell rings. Three tardies will result in a reduction of 1 point from your final grade.
2. To reduce distractions, our classroom is a screen-free environment. In addition to the school’s new no-phone policy, use of all other technological devices (including laptops and tablets) is prohibited — except for during designated digital time.
3. Notes must be taken everyday using pen and paper. Notes are subject to inspection.
4. Respect is fundamental. Disrespectful behavior towards ANYONE will not be tolerated.
Grade: There will be two exams and a final for this course. Grades depend on classroom participation and one group project. Students are expected to carefully prepare the readings for each class. Classroom participation will count toward 40% of the final grade.
 
Group project: Students form groups (depending on final enrollment 3-5 persons per group) and pick a financial crisis not covered in class. Students will present their findings in one of the last sessions.
 
In their discussion of the crisis in question students have to cover the following points:

1. Provide a short summary of the episode
2. Provide an analysis of the crisis – what happened and why?
3. What elements of this crisis are relevant for understanding financial crises more generally?
4. How does this crisis relate to the broad overview we have discussed? I.e. what are new insights and what are parallels with other crises?
5. Discuss the policy prescriptions that can be drawn from this event.

Schedule 

1. The Bubble Triangle, Read Boom and Bust, chapter 1, Powerpoint
2. Dutch Panics: Tulipmania and 1672, Read Tulipmania, Powerpoint
3. 1720 and the Invention of the Bubble, Read Boom and Bust, chapter 2, Powerpoint,  Montesquieu, Persian Letters,
4. Mary Poppins on Banking clip 1 and clip 2
5. 1763: European Banking Crisis, Read Crisis of 1763
6. The Panic of 1819, Read The Many Panics of 1819
7.  The U.S. Panic of 1837, Read: Panic of 1837
8. Marketability Revived: The First Emerging Market Bubble, Read Boom and Bust, chapter 3,  Mr. Hop the Twig​
9. Democratizing Speculation: The Great Railway Mania, Read Boom and Bust, chapter 4
10. Explaining the Business Cycle: Say and Marx
11. Solving the Business Cycle: Bagehot, Panic of 1866
12. Other People’s Money: The Australian Land Boom, Read Boom and Bust, chapter 5
13. Wheeler-Dealers: The British Bicycle Mania, Read Boom and Bust, chapter 6
14. The Roaring Twenties and the Wall Street Crash, Read Boom and Bust, chapter 7
15. The Great Debate: Keynes vs. Hayek, 
16. Blowing Bubbles for Political Purposes: Japan in the 1980s, Read Boom and Bust, chapter 8
17. The Dot-Com Bubble, Read Boom and Bust, chapter 9 and watch "Greed is Good" from Wall Street
18. 'No More Boom and Bust’: The Subprime Bubble, Read Boom and Bust, chapter 10 and watch The Big Short
19. Casino Capitalism with Chinese Characteristics, Read Boom and Bust, chapter 11
20. Predicting Bubbles, Read Boom and Bust, chapter 12