Home > Uncategorized > Teaching finance for the 21st century students

Teaching finance for the 21st century students

from Maria Alejandra Madi and the WEA Pedagogy Blog

Considering the current global scenario, the search for financial stability is one of the main contemporary policy issues. In this context, teaching finance presupposes great heterogeneity among  national economic structures, institutions and social outcomes and its target is to enlarge the comprehension of the real- world in its economic dimensions.

What we should teach in undergraduate courses in order to deal with finance from a real-world perspective- both in microeconomics and macroeconomics curriculum?. The understanding of the current financial challenges requires the adoption of new perspectives in a significant learning process where the pillars should be a solid  theoretical background in economics  and a critical attitude towards the political, economic and social reality where the students live.

Finance is not just related to management techniques, procedures or product phenomena, but involves institutions, behaviours and policies. The existence of a monetary economy of production is founded on credit relations, organized markets of financial assets, speculation and uncertainty. Indeed, in a framework of uncertainty and speculation, a set of interrelated portfolios and cash flows between banks, income-producing firms and households may influence the evolution of credit, the pace of investment, and the valuation of capital assets.   read more

  1. May 10, 2016 at 6:32 am

    I’m trying not to be flippant about all this. Sociologist Neil Fligstein argues that the basic drift of any particular market and its actors, even allowing for competition, is toward stabilization. Not equilibrium but stabilization. Competition is bad. It reduces earnings and thus profits. In modern markets banks are among the more committed to this organization of markets. They supply the debt that keeps everything going. They do not want anything interfering with their pursuit of more debt. And they certainly don’t want the creation and holding of debt examined too closely, and not at all if possible. Since it began just after the Civil War the financialization of capitalism has consistently opposed capitalism. For financial transactionists markets that actually operate as markets are an obstacle to be overcome. And financialists, mostly bankers and traders have been generally successful in this effort. And most of the time the rest of us don’t even notice the sleight of hand.

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