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