ECON 3462 — Bubbles, Busts, and Bailouts: Market and Regulatory Failures in the Financial Crisis
4 semester hoursUndergraduateLectureNUpath SI
Investigates economic and financial bubbles together with the busts and bailouts that usually follow. Analyzes how and why bubbles form in markets such as housing and stocks, emphasizing the financial crisis of 2007-2008, but covers others as well. Also examines the lasting effects on markets and the economy from the collapse of such bubbles and the need for bailouts and other policies that are often used. Applies a range of perspectives to identify the market failures and regulatory failures that can cause bubbles—failures of assumptions about information, about incentives, and about oversight. Includes perspectives from microeconomics, behavioral economics, finance, and public policy.