Module description
What is the module about?
This third-year course provides students with a theoretical and practical understanding of international finance. It covers the balance of payments, determination of exchange rates, advantages and disadvantages of different exchange rate regimes, the Eurozone crisis and international capital flows. The models are applied to the analysis of policy interventions and world events.
Who should do this module?
This module is available to students in the Business School who took a second-year macroeconomics module - either 5SSMN931 Intermediate Macroeconomics or 5QQMN937 Macroeconomics.
Provisional Lecture Outline
Lecture 1: Introduction to International Finance: Key Concepts
Lecture 2: Exchange rates: the monetary approach in the long run
Lecture 3: Exchange rates: the asset approach in the short run
Lecture 4: National and international accounts
Lecture 5: Macroeconomic policies in the short run
Lecture 6: International finance: the empirics of key concepts
Lecture 7: Financial globalisation and the international financial architecture
Lecture 8: Exchange rate regimes and international policy choice
Lecture 9: Exchange rate crises and capital flow volatility
Lecture 10: Data and measurement in international finance & frontier issues
Assessment details
75% Examination
25% 24-hour take home project
Teaching pattern
1 x 2-hour weekly lecture
1 x 1-hour fortnightly tutorial
Suggested reading list
Key text or background reading
The module textbook is: Feenstra and Taylor, International Macroeconomics, 5th edition (2021), Worth MacMillan
We will also be covering some academic and policy papers.