Regulation, Innovation, Excess

The Great Courses
Show More

Related videos

Planet Finance
Part of the Series: The Ascent of Money
By the beginning of the 21st century, the systems of credit, insurance, bond trading and stock markets had transcended all national boundaries to create a truly global economic system, opening the door to unprecedented growth, but also worldwide instability in the event of one nation's downturn. In an effort to…
The Economics of Uncertainty Series
Learn to cope with uncertainty and risk with advice from a master economist. Economic uncertainty is like the weather: you can't stop storms, but understanding them prepares you. Uncertainty is beyond our control, but when you take the mystery and dread out of uncertainty, you can respond much more effectively.…
The Business Cycle’s Wheel of Fortune
Nothing is as certain and yet so unpredictable as the business cycle; economic expansion is invariably followed by a recession--and vice versa--but economists are at a loss to forecast the timing. Study different theories of the business cycle, and learn how to prepare for the next boom or bust.
Man, Nature, and Economic Uncertainty
Professor Fullenkamp begins with "black swan" events--occurrences that are considered as improbable as black swans. A notable recent example is the 2008 financial crisis. This leads to an examination of the nature of uncertainty and the best strategy for dealing with it.
Uncertainty in the Numbers
Statistics are essential tools for dealing with uncertainty, but they should be used with caution. Put numbers such as the unemployment rate and consumer price index into context, probing how such statistics are measured and what the sampling error and confidence interval say about their reliability.
Five Ways to Face the Unknown
In dealing with uncertainty, it makes sense to have an arsenal of different strategies. Explore five techniques for risk management that can be used in every sphere of life: producing information, diversifying, sharing risk, avoiding risk, and absorbing risk. Probe instructive examples of each.
How We Misjudge Likelihood and Risk
Improve your ability to handle uncertainty by studying two ways that people reach decisions. System 1 excels at making snap judgments, while System 2 is analytical, methodical, and more time-consuming. Weigh the strengths and weaknesses of each, focusing on the problem of estimating probabilities.
The Reward in Risk
Having learned to convert uncertainty to risk in Lecture 2, now go deeper by investigating how probabilities can gauge rewards and risks. Test risk-assessing tools used in finance, including expected value, variance, standard deviation, coefficient of variation, Sharpe ratio, covariance, and beta.
Extreme Markets
At any given moment, some market somewhere is making headlines because it's either hitting record highs or crashing down to earth. Learn how to approach the uncertainty of financial markets with savvy and common sense. Focus on strategies that can help you reach your financial goals.
Global Trade in Employment
Free trade produces uncertainty and anxiety in economic players at all levels. Understand how comparative advantage governs who benefits in the competition for international trade. Then hear Professor Fullenkamp's tips for how individuals can cultivate their own comparative advantage in the labor market.
Stress Testing Your Finances
Close by learning how to take the economic "stress test," inspired by bank evaluations made in the wake of the 2008 financial crisis. This simple exercise helps you anticipate the most significant reversals you are likely to meet, helping you approach uncertainty with confidence and calm.
The Principal-Agent Problem: When Mice Play
Focus on a special case of moral hazard: the principal-agent problem, in which an agent is appointed to handle a matter beyond the expertise of the person doing the hiring (the principal). The agent may easily take unfair advantage of this situation, which covers everything from home repair to government…