ECC3750

Evolution of the Australian financial system

Offered subject to final university approval

Associate Professor Tony Dingle and Mr Michael White

6 points · Two 1-hour lectures and one 1-hour tutorial per week · First semester · Clayton · Prerequisites: Successful completion of ECC1000 and ECC1010 and any four second-year economics subjects

Objectives On completion of this subject students should be able to: understand the changing roles and functions of financial institutions in Australia's economic development; explain the reasons for changes in the regulatory structure of the financial system; critically examine why financial markets undergo periods of stability and instability; have acquired an historical understanding of the current Australian financial system; have developed analytical, written and oral skills by writing an essay and presenting a tutorial talk.

Synopsis This subject surveys the growth and evolution of Australian banking and finance from the earliest years of European settlement to the present, with a major focus on the last five decades. Particular emphasis is given to the ways in which institutional change has resulted from the demands of an evolving economy and to the impact of changes in financial activity on levels of economic activity, notably during periods of financial instability. Criticisms of the financial system, following the depressions of the 1890s and 1930s, are studied as is the regulation of the system after 1945. The results of deregulating in the 1980s, as Australia became increasingly integrated into the global financial system, are considered in some detail.

Assessment Tutorial assessment: 10% · Essay (3000 words): 40% · Examination (2 hours): 50%

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