Module description
This module explores the role of finance, specifically financial and monetary policy, in development processes in emerging economies from a theoretical, historical, and policy perspective. This is done building on students’ pre-existing basic macroeconomic knowledge especially around exchange rate movements in the global economy, introducing and explaining more complex concepts in international economics and finance. The module discusses major theories addressing the role of finance in development – including, for instance, classical development economics, structural and dependency thought as well as New Keynesian, and post-Keynesian theories. The module subsequently scrutinises these theories by applying them to real-world examples of finance for development challenges. The module covers economic thinking and policy making in the area of finance for development since the mid-20th century.
The second part of the module addresses major policy concepts and instruments put forward by major policy institutions and development economists. These include, among others, financial deepening as way to growth, microfinance as development intervention, financial inclusion, and blended finance instruments.
The module allows students to critically appraise and challenge competing theories of finance for development, applying those theories to emerging economies. It provides students with the tools to critically analyse the role of financial and monetary policy in the development of emerging economies. Furthermore, it prepares students to present their own ideas.
The module is organised in a way that allows the learning outcomes to be achieved through a range of teaching and learning activities. The first four weeks of the course are dedicated to cover different theoretical perspectives on finance and development. Here, the lectures will provide an outline of the key issues and present different theoretical frameworks for the critical analysis of policy instruments. From week five, specific policy tools and interventions, which have been popular in the area of finance and development over the past five decades or so, are introduced. Seminar activities aim to foster student-centred learning in this module. From week five onwards, students will be asked to critically evaluate specific policy instruments and interventions based on their theoretical knowledge gained in the first half of the module. Each week, they will have the chance to create the outline of a policy blog while working in groups. Through these activities students will acquire the knowledge and skills necessary to complete their first assignment, writing a policy blog discussing current policy challenges when financing development. The written exam at the end of the module will assess overall knowledge and learning in the course of the module.
Assessment details
The assessment format for this module has not yet been confirmed.
Full year study abroad students will be required to sit any online or in person exams as planned.
Semester 1 only study abroad students will be required to sit any online exams. If the exam is in person, semester 1 only study abroad students will be offered an alternative assessment, to be confirmed later in the semester.
Educational aims & objectives
This module explores the role of finance in development from a theoretical, historical, and policy perspective. It engages in depth with major development theories, identifying the place these assign to financial and monetary structures and agents in the process of development. The module then focuses on the changing policies formulated by major international financial institutions such as the World Bank and the International Monetary Fund since the middle of the last century. It traces how major policy concepts such as microfinance, financial inclusion or blended finance emerged, were operationalised as policy, and morphed over time in response to empirical evidence and criticism. In this way, it provides students with an overview of cutting-edge debates around finance and development and the tools to critically analyse the role of financial and monetary policies in emerging economies. Furthermore, it gives the students the opportunity to scrutinise financial theory, apply it to real-world events and critically debate its strengths and weaknesses.
Learning outcomes
At the end of this module, students will be able to:
· Critically engage with the macro- and microeconomic theories, concepts, and policy instruments relating to the role of finance in development.
· Apply relevant theory and concepts to the context of emerging economies and demonstrate a deep and critical understanding of how finance can shape development.
· Apply the key concepts and approaches used in the analysis of financial and monetary policy for development.
· Understand the impact of monetary and financial structures on development outcomes.
· Understand the interdependency between national policies and international financial and monetary structures.
· Understand and critically assess contemporary key policy developments and instruments related to finance for development such as blended finance and development-impact bonds.
Teaching pattern
1 hour lecture and 1 hour seminar over 10 weeks or 2 hour workshop over 10 weeks