Financial Markets 2011
by Robert Shiller
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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.
||1. Introduction and What this Course Will Do for You and Your Purposes||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.”||3/29/2012||Free||View in iTunes|
||2. Risk and Financial Crises||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.||3/29/2012||Free||View in iTunes|
||3. Technology and Invention in Finance||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.||3/29/2012||Free||View in iTunes|
||4. Portfolio Diversification and Supporting Financial Institutions||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.||3/29/2012||Free||View in iTunes|
||5. Insurance, the Archetypal Risk Management Institution, its Opportunities and Vulnerabilities||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.||3/29/2012||Free||View in iTunes|
||6. Guest Speaker David Swensen, Chief Investment Officer at Yale University||Complete course materials are available at the Open Yale Courses website: http://oyc.yale.edu This course was recorded in Spring 2011.||3/29/2012||Free||View in iTunes|
||7. Efficient Markets||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.||3/29/2012||Free||View in iTunes|
||8. Theory of Debt, Its Proper Role, Leverage Cycles||Professor Shiller devotes the beginning of the lecture to exploring the theoretical determinants of the level of interest rates.||3/29/2012||Free||View in iTunes|
||9. Corporate Stocks||Professor Shiller emphasizes the worldwide importance of corporations by looking at World Bank data for corporate stocks as traded on global stock markets.||3/29/2012||Free||View in iTunes|
||10. Real Estate||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.||3/29/2012||Free||View in iTunes|
||11. Behavioral Finance and the Role of Psychology||Deviating from an absolute belief in the principle of rationality, Professor Shiller elaborates on human failings and foibles.||3/29/2012||Free||View in iTunes|
||12. Misbehavior, Crises, Regulation and Self Regulation||After talking about human failures and foibles in the last lecture, this lecture is concerned with regulation to minimize the impact of human errors.||3/29/2012||Free||View in iTunes|
||13. Banks||Banks are among our enduring of financial institutions. Their survival in so many different historical periods is testimony to their importance.||3/29/2012||Free||View in iTunes|
||14. Guest Speaker Maurice “Hank” Greenberg||This is a guest lecture by Maurice “Hank” Greenberg, former Chief Executive Officer at American International Group.||3/29/2012||Free||View in iTunes|
||15. Forward and Futures Markets||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.||3/29/2012||Free||View in iTunes|
||16. Guest Speaker Laura Cha||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.||3/29/2012||Free||View in iTunes|
||17. Options Markets||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.||3/29/2012||Free||View in iTunes|
||18. Monetary Policy||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.||3/29/2012||Free||View in iTunes|
||19. Investment Banks||Professor Shiller characterizes investment banking by contrasting it to consulting, commercial banking, and securities trading.||3/29/2012||Free||View in iTunes|
||20. Professional Money Managers and their Influence||Professor Shiller argues that institutional investors are fundamentally important to our economy and our society.||3/29/2012||Free||View in iTunes|
||21. Exchanges, Brokers, Dealers, Clearinghouses||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.||3/29/2012||Free||View in iTunes|
||22. Public and Non-Profit Finance||As an introduction, 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.||3/29/2012||Free||View in iTunes|
||23. Finding your Purpose in a World of Financial Capitalism||After reviewing the main themes of this course, Professor Shiller shares his views about finance from a broader perspective.||3/29/2012||Free||View in iTunes|
This course is terrific. I listened to it in the car so I have the audio version not the video version. So I'm not sure if it would be even better to see the slides that he refers to. I do however download and print the pdf docs.
I listened to the original Financial Markets (2006 release I believe), and this one is a nice review of that material and a good update. He talks about current economic conditions in this version, it's a little more relevant. Although, because I didn't have any of the slides to look at, and obviously didn't attend any of the TA led workshops I definitely needed twice through this course to fully grasp everything.