ECON 510
Financial Development and Regulation Spring 2023
Division II
Cross-listed ECON 510 / ECON 352
This is not the current course catalog

This course focuses on the financial system in developing countries and its role in economic development. The first part explores the functions of finance, how it contributes to growth and poverty alleviation, as well as examines what can be done to increase financial inclusion. What are the key parts of the infrastructure that are needed to improve access to financial services, including via ‘fintech,’ which is taking off in many developing countries? We will look at experiences with financial sector repression and subsequent liberalization and investigate the causes and impact of financial crises, as well as how to manage them. Then we will study how to make finance effective in dealing with a variety of risks facing societies, including aging and climate change. A key focus will be how to prevent or minimize crises, analyzing government’s role as regulator, supervisor, standard setter, contract enforcer, and owner, including how regulation should respond to climate risk. In this final part, attention will be devoted to the role of institutions (laws, norms, culture) and incentives in financial sector development.