Introduction to International Finance

International Trade 2105-EPE-L-D2INTR
Macroeconomics 2105-EPE-L-D2MACR

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The student gets to know the functioning of international economies and finances. The student learns to have the ability to identify, interpret and explain phenomena using knowledge from international finance, markets and international financial institutions. The student critically finds out how to evaluate the achievements of the theory and thought of microeconomics, macroeconomics, history of economics, finance and theory of trade.

Grades will be based upon a comprehensive final exam (70 %), and a tutorial results (30%).

1. The Global Macroeconomy

2. Introduction to Exchange Rates and the Foreign Exchange Market

3. Exchange Rates I: The Monetary Approach in the Long Run part 1

4. Exchange Rates I: The Monetary Approach in the Long Run part 2

5. Exchange Rates II: The Asset Approach in the Short Run a

6. National and International Accounts: Income, Wealth, and the Balance of Payments

7. Balance of Payments I: The Gains from Financial Globalization a

8. Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run a

9. Fixed Versus Floating: International Monetary Experience part 1

10. Fixed Versus Floating: International Monetary Experience part 2

11. Exchange Rate Crises: How Pegs Work and How They Break

12. The Euro

13. Topics in International Macroeconomics

14. Final Exam

REQUIRED:

Robert Feenstra; Alan Taylor. (2017) International Macroeconomics

topic 1: Part 1: ch. 1;

topic 2: Part 2: ch. 2;

topic 3: Part 2: ch. 3;

topic 4: Part 2: ch. 3;

topic 5: Part 2: ch. 4;

topic 6: Part 3: ch. 5;

topic 7: Part 3: ch. 6;

topic 8: Part 3: ch. 7;

topic 9: Part 4: ch. 8;

topic 10: Part 4: ch. 8;

topic 11: Part 4: ch. 9;

topic 12: Part 4: ch. 10;

topic 12: ch. 11;

EXPERTISE:

Upon the course completion students:

- know basic about currency, money and their role in the international economy.

- know theory of exchanges rates and their impact on the transaction in assets as well as on demand for goods.

- know the trade-offs governments face as they choose between fixed and floating exchange rates.

- are able to analyze the issue of common currency and understand what is the exchange rate crises.

SKILLS:

Upon the seminar completion students:

- are able to identify, interpret and explain economic phenomena using knowledge from the theory of open market macroeconomics.

- are able to critically evaluate the achievements of theory and empirical research in the field of international money markets.

- combine and use multiple sources of information to deepen the knowledge about international finances.

SOCIAL SKILLS:

Upon the seminar completion students are able to:

- propose solutions to macroeconomics model with respect to the regime of exchange rate imbalance.

- understand the consequence of the change on international financial market on consumption, economy and society.

- develop strategies for effective time, task management and work planning.

Grades will be based upon a final exam (70 points) and a tutorial (30 points). The final exam will consist of analytical and numerical problems as well as tests questions. Students will choose 4 out of 5 questions. During the tutorial students will have the opportunity to earn 30% of their grade.

The pass grade is at or above 50% and students must pass the tutorial to be allowed to attend the final exam.

None.