Bachelor
2021/2022
International Finance
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
3 year, 3 module
Mode of studies:
distance learning
Online hours:
16
Open to:
students of one campus
Language:
English
ECTS credits:
3
Contact hours:
30
Course Syllabus
Abstract
This course follows the course Financial Economics and provides a deeper understanding of international financial markets and exchange rate determination. We will discuss who are the main players in the foreign exchange market, what are the major instruments, and what is the structure of these markets. We will study the major models of exchange rate determination and look into the main determinants of foreign exchange fluctuations. We will study currency investment strategies, such as the carry trade, currency momentum and value strategies. We will discuss empirical evidence of profitability and risks of these strategies. We will also talk about the main mechanisms of currency hedging.
Learning Objectives
- To familiarize students with the foreign exchange market, the dynamics of exchange rates and factors affecting exchange rates
Expected Learning Outcomes
- Learn currency risk management techniques
- Learn the most popular currency investment strategies
Course Contents
- Online part. 1. Introduction to international trade and finance
- Online part. 2. Exchange rates
- Online part. 3. Currency issues
- Online part. 4. The Euro crisis
- Online part. 5. International trade overview
- Online part. 6. Crises and responses to them
- Main part. 1. The foreign exchange market: An overview
- Main part. 2. An asset approach to exchange rate determination
- Main part. 3. Money, interest rates and exchange rates
- Main part. 4. Currency investment strategies
- Main part. 5. Inflation and exchange rates in the long run
- Main part. 6. Financial globalization and international asset pricing
Assessment Elements
- 4 in-class quizzesIf a student misses a quiz due to an illness, the final grade is determined as follows: Final grade = Cumulative grade/(1-ωi/2), where ωi is the weight of quiz i.
- Class participation
- Group project
- Mid-term test
- Final test
- 4 in-class quizzesIf a student misses a quiz due to an illness, the final grade is determined as follows: Final grade = Cumulative grade/(1-ωi/2), where ωi is the weight of quiz i.
- Class participation
- Group project
- Mid-term test
- Final test
Interim Assessment
- 2021/2022 3rd module0.1 * Mid-term test + 0.05 * Class participation + 0.2 * 4 in-class quizzes + 0.15 * Group project + 0.5 * Final test
Bibliography
Recommended Core Bibliography
- Betz, F. (2016). Stability in International Finance : Applications of Price Disequilibrium Theory. Cham: Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1163244
- International economics : theory & policy, Krugman, P. R., 2012
- Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2015). International Finance: Theory and Policy, Global Edition (Vol. Tenth edition, Global edition). Harlow, Essex: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419051
- Major, A. (2014). Architects of Austerity : International Finance and the Politics of Growth. Stanford, California: Stanford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=713319
Recommended Additional Bibliography
- Giancarlo Gandolfo. (2016). International Finance and Open-Economy Macroeconomics. Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.spr.sptbec.978.3.662.49862.0
- Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2017). International Finance: Theory and Policy, Global Edition (Vol. Eleventh edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1649947