Money, Banking and Cryptocurrencies

About

The module will explore the role of money and banking in normal and crisis times as well as the most recent developments in the financial industry, namely cryptocurrencies and blockchain technologies.

You will investigate the role of credit for economic growth, why banks exist and how they compete.

You will research how banks possibly triggered the Great Financial Crisis (2007-8) as well as governments’ policies in response.

Finally, you will explore the most recent development in the money and credit markets, such as blockchain technologies and cryptocurrencies, with specific emphasis on bitcoins.

The module will be articulated around standard theoretical models, empirical evidence, policy developments and case studies.

With the latter respect, you will take advantage of the international dimension of the UCL Summer School and draw from the experiences of different countries in the world.

Week One: Why do we Need Money and Banks?
What is Money? What is Credit? Why do Money and Banks Exist? The Concept of Financial Development
How Banks Work and How they Compete. Profit Maximisation through Price and Non-price Competition
Real World Data: Countries and their Levels of Financial Development
Analysis of the Concept of Financial Development. What is the Role of Credit for Economic Growth?

Week Two: When Things Go Wrong: the Great Financial Crisis
The Great Financial Crisis: Causes and the Role of Banks
The Costs and Consequences of the Financial Crisis: Exploring the Literature
What did we Learn? Remedies and Perspectives for the Future

Week Three: Banking without Banks: Bitcoin and Distributed Ledgers
Introduction to Bitcoin and Blockchain
Is Bitcoin Money?
Bitcoin and the Future of Banks (and Central Banks)

Course leader

Dr Silvia Dal Bianco

Course aim

This module aims to:

- Deepen your understanding of money and banking in both normal and crisis conditions, as well as recent developments in the financial industry, with specific reference to blockchain technologies and Bitcoin.
- Explore and justify why money and banks are considered the cornerstones of market economies.
- Examine why economic stability largely depends on the smooth functioning of the money market, and how its malfunction or mismanagement can lead to crises that require government intervention and regulation.
- Highlight that the concepts of money and banking are continuously evolving, with blockchain and Bitcoin representing some of the most striking and controversial recent financial innovations.
- Provide a sound understanding of the economic nature of Bitcoin and the potentially disruptive impact of blockchain technologies on the banking industry.

Fee info