Lectures (Video)
- 1. Finance and Insurance as Powerful Forces in Our Economy and Society
- 2. The Universal Principle of Risk Management: Pooling and the Hedging of Risks
- 3. Technology and Invention in Finance
- 4. Portfolio Diversification and Supporting Financial Institutions (CAPM Model)
- 5. Insurance: The Archetypal Risk Management Institution
- 6. Efficient Markets vs. Excess Volatility
- 7. Behavioral Finance: The Role of Psychology
- 8. Human Foibles, Fraud, Manipulation, and Regulation
- 9. Guest Lecture by David Swensen
- 10. Debt Markets: Term Structure
- 11. Stocks
- 12. Real Estate Finance and Its Vulnerability to Crisis
- 13. Banking: Successes and Failures
- 14. Guest Lecture by Andrew Redleaf
- 15. Guest Lecture by Carl Icahn
- 16. The Evolution and Perfection of Monetary Policy
- 17. Investment Banking and Secondary Markets
- 18. Professional Money Managers and Their Influence
- 19. Brokerage, ECNs, etc.
- 20. Guest Lecture by Stephen Schwarzman
- 21. Forwards and Futures
- 22. Stock Index, Oil and Other Futures Markets
- 23. Options Markets
- 24. Making It Work for Real People: The Democratization of Finance
- 25. Okun Lecture: Learning from and Responding to Financial Crisis, Part I
- 26. Okun Lecture: Learning from and Responding to Financial Crisis, Part II
Financial Markets - Lecture 3
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Lecture 3 - Technology and Invention in Finance
Technology and innovation underlie finance. In order to manage risks successfully, particularly long-term, we must pool large amounts of risk among many, diverse people and overcome barriers such as moral hazard and erroneous framing. Inventions such as insurance contracts and social security, and information technology all the way from such simple things as paper, and the postal service to modern computers have helped to manage risks and to encourage financial systems to address issues pertaining to risk. The tax and welfare system is one of the most important risk management systems.
Prof. Robert Shiller
ECON 252 Financial Markets, Spring 2008 (Yale University: Open Yale) http://oyc.yale.edu Date accessed: 2009-01-06 License: Creative Commons BY-NC-SA |
