Development Finance

Lecture 01: Global Financial System and the Role of Finance in Economic Growth and Development

Nguyen Xuan Thanh

Readings:

1. World Bank (2001), Finance for Growth: Policy Choices in a Volatile World. Chapter 1: "Making Finance Effective", pp. 31-44

2. "International Institutions", HBS case 9-796-116, February 13, 1996 & FETP cập nhật 2013

Reference:

1. P. K. Rao (2003), Development Finance, Chapter 1&2

2. Levine R. (2004), Finance and Growth: Theory and Experience. Working Paper 10766. NBER.

Lecture 2: Financial System in Vietnam

Do Thien Anh Tuan

Readings:

1. Huynh The Du, Nguyen Minh Kieu (2005), Vietnam Financial System

2. SBV (2011), "Overview of Credit Institutions in Vietnam"

Case study 1: Capital Access by Vietnamese businesses

Huynh The Du

Readings

1. Mr. Nam's Dilemma, KSG case study

Paper 1 due

Lecture 03: Financial Repression and Liberalization

Nguyen Xuan Thanh

Readings:

1. Jay K. Rosengard và Huỳnh Thế Du (2008), Funding Economic Development: A Comparative Study of Financial Sector Reform in Vietnam and China.

2. Ronald I. McKinnon (1992), The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy. Chapter 4: "Instruments of Financial Repression".

3. Nguyen Xuan Thanh, "Vietnam: the Journey to Interest Rate Liberalization".

4. Nguyen Xuan Thanh, "Financial Liberalization", lecture note.

References:

1. Charles W. Calomiris, David O. Beim (2000), Emerging financial markets, Chapter 2: "Financial Repression and Financial Liberalization".

2. Asli Demirgüç-Kunt và Enrica Detragiache (1998), "Financial Liberalization and Financial Fragility", World Bank Annual Conference on Development Economics.

Lecture 04: Capital Account Liberalization

Do Thien Anh Tuan

Readings:

1. WB (2012) "Global Development Finance: Foreign Debt of Developing Countries"

2. J. Frankel & et al. (2007), "World Trade and Payments, an introduction", Chapitre 15 "The Balance of payments accounts", p. 273 - 290

3. IMF Institute, Financial Programming and Policy, 1999 - Unit 5: "Analysis of the Balance of Payments".

4. Stiglitz, Joseph (2005). "Liberation of capital market, globalization, and IMF," Oxford Review of Economic Policy, Vol. 20, No. 1, pgs.57-71.

Case study 2: Interest Rate Control in Vietnam 2008-2012

Huynh The Du

Readings:

1. "The Interest Rate Race 2008-2012", FETP Case Study

Paper 2 due

Lecture 05: The Theory of Financial Crisis – First and Second Generation Models

Nguyen Xuan Thanh

Readings:

1. The World Bank (2001), Chapter 2, "Prevention and Mitigation of Crisis".

Lecture 06: The Theory of Financial Crisis – Third Generation Model

Nguyen Xuan Thanh

Readings:

1. N.X.Thanh, "Models of Monetary Crisis: 1st and 2nd generations", lecture notes

2. N.X.Thanh, "Model of Monetary Crisis: 3rd generation", lecture notes.

Case study 3: Financial Crisis in Vietnam

Nguyen Xuan Thanh

Readings:

1. The Asia Program at Harvard Kennedy School and the Fulbright Economics Teaching Program at the University of Economics, HCMC, "Policy Paper: Structural Reform for Growth, Equity, and National Sovereignty", Jan. 2012.

2. The Asia Program at Harvard Kennedy School and the Fulbright Economics Teaching Program at the University of Economics, HCMC, "Policy Paper No. 4", Jan. 2009.

3. Huỳnh Thế Du và Jay Rosengard, "Vietnamese Economy Dealing With Challenges".

Paper 3 due.

Lecture 07: Central Bank

Do Thien Anh Tuan

Readings:

1. IMF Institute, Financial Programming and Policy, 1999 - part 7: "Analysis the monetary field".

2. Vũ Thành Tự Anh (2010), "Building a Modern Central Bank."

Lecture 08: Commercial Bank

Do Thien Anh Tuan

Readings:

1. Huynh The Du (2010), "Positive signals from regulations on operational safety of Vietnamese banks".

2. Beim and Calomiris (2000). Chapter 7: "The trouble with banks".

3. The World Bank (2001), Chapter 2: "Preventing and Minimizing Crises," pp. 90-119. (Vietnamese version: Chapter 2, pp. 123-166.

Case Study 4: Cross Ownership in Vietnamese Commercial Banks

Nguyen Xuan Thanh

Readings:

1. FETP case study, "Ownership Structure in Vietnamese Commercial Banks".

Paper 4 due.

Lecture 09: Non-Bank Financial Sector

Do Thien Anh Tuan

Readings:

1. Mishkin (2003), Chapter 12: "Nonbank Finance," pp. 287-307.

2. N.X. Thanh, "The HIFU", Case study.

Case Study 5: Micro Finance

Do Thien Anh Tuan

Readings:

1. KSG Case, "Commercial Bank Providing Micro Finance Services: Sogesol in Haiti."

2. Jonathan Morduch (1999), "The Microfinance Promise"

3. Karla Hoff and Joseph E. Stiglitz (1990), The Economics of Rural Organization,

4. Perspectives", World Bank Economic Review.

Paper 5 due.

Lecture 10: Money Market

Guest Speaker: Nguyen Duc Mau, Director of Currency Trading and Speculation, Indovina Bank

Readings:

1. Frank J. Fabozzi (2002), "Capital markets: institutions and instruments" – 3rd ed., Prentice Hall Publishing House.

Lecture 11: Stock Market

Guest speaker: Trinh Hoai Giang, HSC Vice President

Readings:

1. CIEM and UNDP (2004), "Vietnam Financial Market: Reality, Issues, and Policy Solutions", Publishing House. Chapters 3 and 4.

2. World Bank, Vietnam Development Report 2009.

Paper 6 due.

Lecture 12: Bond Market

Guest Speaker: Nguyen Tan Thang, HSC Bond Research Director

Readings:

1. World Bank, Vietnam Development Report 2009.

Lecture 13: Restructuring Vietnam's Financial System

Nguyen Xuan Thanh

Readings:

1. Decision 254/QĐ-TTg on "Restructuring Credit Institution Systems period 2011-2015".

2. Daniela Klingebiel (2001), Ch. 13.

Case Study 7: Choosing Monitoring Model for Financial System

Do Thien Anh Tuan

Readings:

1. Charles W. Calomiris, David O. Beim (2000), Emerging financial markets, Chapter 4: "Legal Foundations" and Chapter 9: "Building Financial Institutions"

2. Huỳnh Thế Du, "Choosing Monitoring Model for Financial System in Vietnam".

Paper 7 due.

Review

Final Exam