International Finance - ECON8160

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Module delivery information

Location Term Level1 Credits (ECTS)2 Current Convenor3 2022 to 2023
Canterbury
Spring Term 7 15 (7.5) Wei Jiang checkmark-circle

Overview

This module is designed to introduce to the main theoretical and empirical models of international financial relations. Exchange rates, capital flows, financial crises, current account and debt dynamics as well as uncertainty are the most widely debated economic topics in the media and on the political arena. This module provides the economic foundations for full understanding of these debates from a rigorous point of view. The module is evenly balanced between the theory and empirical evidence. That is, we focus not only on the analytical side of the stories but also on their empirical relevance.

For working in the areas of financial economics and development (whether in private or public institutions) the knowledge of the topics addressed in this module is of paramount importance.

Details

Contact hours

Total contact hours: 30

Private study hours: 120

Total study hours: 150

Availability

Compulsory to MSc Financial Economics

Method of assessment

Essay, 2000 words (20%)
Examination (2 hours) (80%)

Indicative reading

Core reading

* León-Ledesma, Miguel and Alexander Mihailov. Advanced International Macroeconomics and Finance. Oxford University Press, 2018.

Recommended reading

* Schmitt-Grohe, Stephanie, Uribe, Martin, and Michael Woodford. International Macroeconomics. Princeton University Press, 2016

* Schmitt-Grohe, Stephanie and Martin Uribe. Open economy macroeconomics. Princeton University Press, 2017.

* Sarno, Lucio, and Mark Taylor. The Economics of Exchange Rates. Cambridge University Press, 2002.

* Obstfeld, Maurice, and Kenneth Rogoff. Foundations of International Macroeconomics. MIT Press, 1996.

This list will be augmented by the articles from such journals as American Economic Review, Econometrica, Journal of Financial Economics, Journal of Monetary Economics, Journal of Political Economy, Quarterly Journal of Economics and Review of Economic Studies among others.

See the library reading list for this module (Canterbury)

Learning outcomes

On successfully completing the module students will be able to:

8.1. Comprehensively understand how the openness of economies affects their economic performance, accounting for complex institutional arrangements that exist in the contemporary world economy

8.2. Critically assess determination of exchange rates and systematically study the sources of exchange rate fluctuations

8.3. Deeply assess the causes and consequences of international capital movements as well as recent trends in 'globalisation', and acknowledge how these transform our understanding of such controversial phenomena as financial bubbles, speculative attacks, and currency crises.

8.4. Critically address the concept of intertemporal trade and risk diversification using the synthesis of existing advanced theories

8.5. Demonstrate profound knowledge of the history of the international monetary system.

Notes

  1. Credit level 7. Undergraduate or postgraduate masters level module.
  2. ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
  3. The named convenor is the convenor for the current academic session.
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