Faculty
Alfred Reckendrees

Course Coordinator
Søren H. Jensen,

English proficiency is required; exams are taken in English. The course requires a basic knowledge of macro- and micro-economic theory.

The world economic crisis that began in 2007 was / is the worst economic crisis since the 1930s; it has prompted enormous economic stimulus packages and a new discussion about financial regulation. The aftermath of this crisis will restrict future fiscal and social possibilities for most countries. - What were the reasons for this crisis, how might it be explained? How was it possible and why is it so difficult to learn from past experience?

Financial and economic crisis are all but singular events. This course compares the recent world economic crisis (2007-2010?) with the Great Depression (1929-33) and its aftermath, and also with the international oil-price crisis (1973/74), the Asian-crisis (1997) and the so-called dot.com bubble (1999-2000) that did not similarly infect the world economy. These crises offer empirical evidence for a general analysis of financial and economic crises. The course focuses on a comparative analysis of crises and on the analysis of political and corporate responses to crises on the national and international level.

Based on (1) the analysis of the long-term development of the ‘international monetary system’ and the ‘financial globalization’, (2) on the discussion of theoretical explanations of financial crisis, and (3) on a comparative historical analysis of past crises and corporate responses to crisis, the students analyze the course and the causes of the recent world economic crisis and strategies of governments, international institutions, and companies to cope with it.

The aims of this course are to

- engross the students’ understanding of economic crises as well as theoretical reflections on crisis,
- expand their knowledge and understanding of international institutions (financial, political, etc.),

- enhance the students’ ability to analyze complex economic processes,

- find out whether there are specific corporate strategies to survive economic crisis,

- point out the possible gains of historical comparison and warn against (hopefully) wrong historical parallels.

The course will enlarge the students’ capability to analyze critical industrial and economic development that is necessary for the design of corporate or political institutions’ strategy towards crisis; it will, however, not train technical tools.

The course will be taught in 15 weeks (2h each). Due to the overall objective, a substantial part of the course is based on lectures combined with classroom discussions. The discussion will be partly based on students’ presentations and group discussions. Preparatory reading of approx. 500pp is required.

Students improve their capability to analyze general economic development and their knowledge and understanding of financial and economic crises (and respective theoretical approaches). They learn to identify and to analyze the impact of different institutional arrangements, the role of the state and international organizations on the courses of financial and economic crises and they will create knowledge on approaches how to cope with crises both on the macro (governmental) and the micro (corporate) level.

Furthermore, the students enhance their capacity to apply theoretical concepts in order to explain economic and industrial development and to analyze corporate strategies. By comparative analysis of different countries, industries and time periods they, furthermore, increase inter-cultural competences and historical knowledge.

The project/home assignment must be related to the broad theme of the course [economic and financial crisis, corporate response to crisis, policy response to crisis, studies on industrial branches or companies, social impacts of economic crisis (…)] – a list of topics will be distributed at the beginning of the course.

In order to achieve Grade 12 (7 point scale) the students must

· develop a well defined and coherent research question,

· construct a wide empirical base and a theoretical/methodological concept that allows for an answer to the research question,

· use material, literature, and data that goes beyond the syllabus.

· The project must be based on this empirical material and the discussion of the relevant literature.

· It has to prove evidence of a comprehensive knowledge of both the empirical case and the literature, and

· it must demonstrate a high level of command of the methods/theories used.

· Competing explanations must be discussed critically.

· The research question has to be analyzed and answered in a comprehensible, precise, structured and logical manner.

Final exam: Project exam/home assignment (15 pages)

Re-take exam: Project exam/home assignment (15 pages)

The course requires intensive reading in order to prepare the classes (appr. 40p. for each class) and additional reading beyond the syllabus in order to write the project.

A compendium and a compulsory syllabus with up-to-date papers and articles will be constructed until 15 August 2010 (the recent crisis is a field of ongoing research).

Books