1. Why Finance?





The interactive transcript could not be loaded.



Rating is available when the video has been rented.
This feature is not available right now. Please try again later.
Uploaded on Apr 1, 2011

Financial Theory (ECON 251)

This lecture gives a brief history of the young field of financial theory, which began in business schools quite separate from economics, and of my growing interest in the field and in Wall Street. A cornerstone of standard financial theory is the efficient markets hypothesis, but that has been discredited by the financial crisis of 2007-09. This lecture describes the kinds of questions standard financial theory nevertheless answers well. It also introduces the leverage cycle as a critique of standard financial theory and as an explanation of the crisis. The lecture ends with a class experiment illustrating a situation in which the efficient markets hypothesis works surprisingly well.

00:00 - Chapter 1. Course Introduction
10:16 - Chapter 2. Collateral in the Standard Theory
17:54 - Chapter 3. Leverage in Housing Prices
33:47 - Chapter 4. Examples of Finance
46:13 - Chapter 5. Why Study Finance?
50:13 - Chapter 6. Logistics
58:22 - Chapter 7. A Experiment of the Financial Market

Complete course materials are available at the Yale Online website: online.yale.edu

This course was recorded in Fall 2009.

All Comments

Comments are disabled for this video.
When autoplay is enabled, a suggested video will automatically play next.

Up next

to add this to Watch Later

Add to

Loading playlists...