21. Exchanges, Brokers, Dealers, Clearinghouses

Financial Markets (2011) (ECON 252) As the starting point for this lecture, Professor Shiller contrasts the view of economics as the theory of the allocation of scarce resources with the view of economics as the study of exchange. After a discussion of the difference between brokers and dealers, he outlines the history of securities exchanges from ancient Rome, to the Amsterdam Stock Exchange and Jonathan s Coffee House in London, until the formation of the New York Stock Exchange. He complements this hist