Lectures

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  1. Economic Development Foundations

  In our introductory lecture, Dr. Charles Calomiris begins our examination of the complex relationship between institutions, finance, and economic development, highlighting how political and institutional choices shape economic trajectories. We explore historical and contemporary factors, emphasizing the role of governance in financial systems. Using empirical evidence, including the 1990s emergence phenomenon, the lecture shows how economic liberalization and strong institutions drive growth, underscoring their crucial role in long-term development.
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  2. Governance and Growth

  In lecture two, we study the relationship between equity market liberalization, institutional quality, and economic growth in emerging markets. Dr. Calomiris explains how reducing barriers to foreign ownership, alongside strong governance, boosts investment, productivity, and GDP growth. Using examples from the 1980s and 1990s, we analyze public and private expropriation risks that hinder foreign participation despite legal liberalization. The lecture concludes by discussing how institutional reforms, particularly in corporate governance and minority shareholder protection, can help mitigate these risks, though implementing such changes often faces political resistance from entrenched interests.
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  3. Emerging Market Reforms

  In lecture three, we explore the evolution of corporate governance reforms in emerging markets following the 1997 Asian financial crisis, examining various country cases including Korea, Indonesia, Bulgaria, Russia, and China. We analyze how different approaches to governance reform, from government-mandated changes to voluntary initiatives like Brazil's Novo Mercado, have impacted firm valuations and market performance. Finally, Dr. Calomiris introduces recent advancements in using textual analysis to assess country-specific risks and their influence on equity prices, capital flows, and exchange rates in real-time.
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  4. Debt and Risk

  In lecture four we learn about the institutional foundations of debt markets in emerging economies, emphasizing public governance challenges that impact debt issuance and market development. Namely, we see how weak rule of law and corruption limit fiscal resources, leading to financial repression and reliance on foreign currency debt. We examine how creditors' rights, sound public finance, and stable monetary policies foster stronger banking systems and economic growth, with evidence showing that better institutions enhance credit availability and financial stability.
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  5. Credit and Risk

  In lecture five we investigate how creditors' rights impact banking development and economic growth, emphasizing the role of stronger protections in expanding credit access. We also explore the risks of emerging markets accumulating US dollar-denominated debt, which surges during low US interest rates but raises default risks as rates rise. Lastly, we discuss how financial development affects economic inclusion and how US monetary policy influences emerging market debt issuance.
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  6. Emerging Market Dynamics

  In lecture six, we explore sovereign debt risk and financial market dynamics in emerging economies, focusing on the challenges of managing capital flows, banking system stability, and regulatory frameworks. We examine case studies including Venezuela's 2018 debt crisis and successful regulatory reforms in countries like Chile and Argentina in the 1990s, highlighting how market-based supervision and limited deposit insurance can enhance banking system stability. The lecture concludes by discussing how emerging markets learn from liberalization experiences, suggesting that despite initial challenges, long-term institutional improvements are possible.