This free online course, offered by Yale University and taught by Professor Robert Shiller, provides an in-depth exploration of financial markets. Students will experience:
Participants will emerge from the course with a solid foundation in the complexities of financial markets, enabling them to navigate current economic headlines with confidence.
This module introduces the course, outlining its objectives and relevance. Professor Shiller discusses the themes covered, recommended textbooks, and how this course complements Professor Geanakoplos's course on Financial Theory.
In this module, Professor Shiller delves into the relationship between risk and financial crises. He discusses historical financial crises, their implications for risk management, and how understanding risk is crucial for navigating financial markets.
This module emphasizes the significant role finance and insurance play in our economy and society. Professor Shiller highlights topics such as behavioral finance, financial technology, and the importance of understanding financial instruments.
In this module, statistics and mathematics are explored as foundational elements of finance. Key concepts like probability theory, variance, and present value are discussed, highlighting their importance in financial analysis and risk management.
This module covers the intersection of technology and finance. Professor Shiller discusses innovations such as insurance contracts and information technology, emphasizing their roles in managing risks and shaping modern financial systems.
In this module, the concept of portfolio diversification is introduced as a fundamental aspect of risk management. Professor Shiller explains how asset allocation affects expected returns and risks within investment portfolios.
This module focuses on insurance as a vital risk management tool. It discusses how pooling risks among individuals helps minimize overall risk and addresses issues related to moral hazard and selection bias in the insurance industry.
In this module, various theories regarding stock price analysis are examined. The efficient markets hypothesis and random walk theory are discussed, along with empirical tests that explore the challenges of predicting stock price movements.
This module explores behavioral finance and its impact on financial decision-making. It introduces psychological factors that lead to irrational behavior, discussing insights from prominent theories such as Kahneman and Tversky's Prospect Theory.
This module discusses the importance of regulation in financial markets. It examines how psychological phenomena can distort behavior and the role of regulatory bodies in protecting investors and maintaining market integrity.
This module highlights the strategies for long-term investing as discussed by David Swensen. He emphasizes the significance of asset allocation, diversification, and the importance of understanding hedge funds in the context of long-term investment success.
This module analyzes debt markets, including the mechanics of public and private debt issuance. It discusses how interest rates are determined by market forces and the implications of the term structure for investment decisions.
This module addresses the significance of real estate finance and its susceptibility to economic crises. It discusses factors that influence real estate investments and the relationship between real estate and financial stability.
This module provides an overview of banking systems and their evolution. Professor Shiller discusses the roles of different banking institutions, highlighting issues like adverse selection, moral hazard, and liquidity in the functioning of banks.
In this module, the efficiency of financial markets is critically analyzed. Andrew Redleaf shares insights based on his experiences, discussing the challenges of market efficiency and psychological barriers that can hinder optimal decision-making.
This module features a guest lecture by Carl Icahn, an influential activist investor. He shares insights into his career, his views on corporate America, and the opportunities and challenges present in today's economy.
This module discusses the evolution of monetary policy and the roles of central banks. It traces the history of monetary policy, examining how central banks respond to economic crises and their impact on financial stability.
This module focuses on investment banking and its role in secondary markets. Professor Shiller discusses the mechanics of underwriting securities and the changing landscape of investment banking in response to market dynamics.
In this module, the influence of professional money managers is examined. It discusses their roles in assisting individuals with personal finance and the regulations that govern their activities to protect investors.
This module explores the role of brokerage and electronic communication networks (ECNs) in securities trading. It discusses how exchanges function to create market prices and the advancements in trading technologies over time.
This module focuses on private equity and its relationship with the financial crisis. Stephen Schwarzman discusses his insights on the industry and shares perspectives on future challenges and opportunities in global finance.
This module introduces forwards and futures markets, explaining their historical context and current significance. It discusses how these markets provide risk management tools and opportunities for hedging and arbitrage.
This module examines stock index futures and their expanded applications in modern finance. It discusses pricing dynamics such as backwardation and contango, along with the implications for investors.
This module covers options markets and their importance in portfolio management. It explains the key concepts behind options pricing, including the Black-Scholes model and the diverse applications of options across asset classes.
This final module addresses the democratization of finance, highlighting tools for individual risk management. It discusses the significance of social insurance programs and considerations of morality and purpose in financial decision-making.
This module reflects on lessons learned from past financial crises. Professor Summers discusses the role of monetary policy in economic fluctuations and the need for models to understand systemic risks in finance.
In this concluding module, Professor Summers continues the discussion on financial crises, emphasizing the importance of monitoring financial intermediation capital and the regulatory response needed to stabilize the economy.