ECON 251: Financial Theory
Lecture 07 - Shakespeare's Merchant of Venice and Collateral, Present Value and the Vocabulary of Finance. While economists didn't have a good theory of interest until Irving Fisher came along, and didn't understand the role of collateral until even later, Shakespeare understood many of these things hundreds of years earlier. The first half of this lecture examines Shakespeare's economic insights in depth, and sees how they sometimes prefigured or even surpassed Irving Fisher's intuitions. The second half of this lecture uses the concept of present value to define and explain some of the basic financial instruments: coupon bonds, annuities, perpetuities, and mortgages. (from oyc.yale.edu)
| Lecture 07 - Shakespeare's Merchant of Venice and Collateral |
| Time | Lecture Chapters |
| [00:00:00] | 1. Introduction |
| [00:01:33] | 2. Contracts in Merchant of Venice |
| [00:20:23] | 3. The Doubling Rule |
| [00:36:07] | 4. Coupon Bonds, Annuities, and Perpetuities |
| [00:54:24] | 5. Mortgage |
| [00:59:15] | 6. Applications of Financial Instruments |
| References |
| Lecture 7 - Shakespeare's Merchant of Venice and Collateral Instructor: Professor John Geanakoplos. Transcript [html]. Audio [mp3]. Download Video [mov]. |
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