International Currency and Financial Relationships

2021/2022

Учебный год

ENG

Обучение ведется на английском языке

3

Кредиты

Кто читает:

Департамент мировой экономики

Статус:

Курс обязательный

Когда читается:

2-й курс, 3 модуль

Преподаватели

Бондаренко Ксения Андреевна

Джагитян Эдуард Павлович

Мухаметов Оскар Рустямович

Орехов Михаил Игоревич

Course Syllabus

Abstract

This Program aims at holistic understanding and fact-based view by the students of the principles, logics, consistency, dynamics, and perspectives of the international currency and financial relationships (ICFR) together with the role of the ICFR and their institutional framework in shaping the processes of financial globalization at the national, regional, and international levels. The Program delves into the evolution and specifics of the macrofinance policy and how it is tailored and managed amid imperfection and asymmetries of international financial markets. The Program also looks into the extent to which the ICFR promotes financial stability. Students will acquire knowledge about the key characteristics and mechanisms of the ICFR of Russia. The Program will equip students with broad-based outlook for the functional specifics of international finance, trade finance, and credit; international financial institutions/organizations; international capital flow; and the weaknesses and risks of the post-crisis recovery in the area of international finance. Students will expand their awareness of the latest developments in financial globalization and will be able to grasp the insights of the policy-making events and issues associated with the ICFR.

Learning Objectives

• To develop students’ skills and expertise necessary for holistic and unbiased understanding of economic principles, framework, processes, and perspectives associated with the ICFR, including institutional aspect, and the interrelationship between the ICFR’s structural elements at different economic hierarchies, including those applicable to the context of financial stability.
• To make students understand the economic background, rationale, driving forces, evolution, and the post-crisis issues of the ICFR, as well as the role and criticality of the ICFR in the processes of financial globalization and regionalization through the prism of the specifics of macro-financial policy, imbalances of global financial markets, and asymmetries of the global financial markets that affect the financial markets participants.
• To equip students with understanding of the complex mechanisms and patterns of the ICFR in different phases of the business, financial, and economic cycles; of the specifics of the relationship and interdependence of the ICFR with other segments of macro-financial management and, as such, to expand their understanding of the processes in the global financial environment and how they are affected by international financial intermediation.

Expected Learning Outcomes

• acquire a hands-on approach in identification of the various types of risks associated with the ICFR. They should understand the extent to which risk transmission affects international financial markets and financial stability, and risks in the ICFR could be mitigated.
• be able to analyze the specifics of the foreign exchange position of the bank and how it affects its stress resilience, how the instruments of international capital markets are used, and how the national credit and eurocredit markets work.
• be able to differentiate among various categories of world currencies; understand how the exchange rate is settled; and what is the specifics of the monetary policy trilemma.
• know the specifics of the balance of payments’ structure, the purpose of its accounts, and how they are offset in case of the positive or negative balance.
• recognize the main differences between international credit and international project finance. They should understand why international leasing is required and be able to make the difference between international factoring and international forfeiting.
• understand core principles, issues, and challenges of the contemporary international currency and financial relationships (ICFR); risks of financial globalization and regionalization, as well as how the ICFR are affected by crises.
• understand differences among the main forms of the trade finance instruments and when they are used, as well as the risks associated with international trade finance transactions.
• understand factors underlying the institution and operationalization of the international financial institutions, their core functions, and differentiate between global and regional financial institutions.
• understand how Russia affects the ICFR by means of the participation in the international financial markets, what is the specifics of the Russian balance of payments, and how the exchange rate of the Russian ruble affects the exchange rate policy of the Central Bank of the Russian Federation.

Course Contents

• International currency and financial relationships, and financial globalization
• International monetary system, policy, and regulation
• Balance of payments
• International trade finance
• International credit
• International foreign exchange, credit, and securities markets
• Risks in international currency and financial relationships
• Institutional framework of international currency and financial relationships
• International currency and financial relationships of Russia

Assessment Elements

• Seminars
• Control work 1 (CW-1)
  The control work (CW-1) is based on the Socrative platform (https://www.socrative.com/). Students must be online 15 minutes before the CW-1 starts. The student’s computer must meet the following requirements: https://elearning.hse.ru/data/2020/05/07/1544135594/Технические%20требования%20к%20ПК%20студента.pdf) To participate in the CW-1, the student should conduct a system test. During the control work students are prohibited from any form of communication (by using social networks or with somebody else in the room). In case the student was unable to pass the CW-1 during the scheduled time due to interruption in internet connection, they CANNOT retake the CW-1.
• Control work 2 (CW-2)
  The control work (CW-2) is based on the Socrative platform (https://www.socrative.com/). Students must be online 15 minutes before the CW-2 starts. The student’s computer must meet the following requirements: https://elearning.hse.ru/data/2020/05/07/1544135594/Технические%20требования%20к%20ПК%20студента.pdf) To participate in the CW-2, the student should conduct a system test. During the control work students are prohibited from any form of communication (by using social networks or with somebody else in the room). In case the student was unable to pass the CW-2 during the scheduled time due to interruption in internet connection, they CANNOT retake the CW-2.
• Essay
  In case the student fails to submit an essay within the period stipulated by the Program, the student receives “0” (fail) grade for the essay, and the final grade (GF) is re-calculated based on the following formula: GF = 0,24*GS + 0,14*GCW1 + 0,24*GCW2 + 0,29*GE + 0,09*GA where GS is the grade for the seminars, GCW1 and GCW2 are the grades for the control work 1 (CW-1) and control work 2 (CW-2) accordingly, GE is the grade for the essay, and GA is the grade for class attendance. At the same time, the grades for each element of the final grade are re-calculated and rounded to the nearest smallest whole number, regardless of the decimal digit. The final grade for the ICFR discipline is rounded in the same way. For example, a grade of 7.9 is rounded to 7. For students who submitted the essay within the period stipulated by the Program, the grades are not rounded and are expressed as a whole number with one decimal sign.
• Class attendance
• Exam (for students received grades 0-3 for the Program)
  This is an oral exam based on the Webinar platform (https://webinar.ru/). Students must be online 15 minutes before the exam starts. The student’s computer must meet the following requirements: https://elearning.hse.ru/data/2020/05/07/1544135594/Технические%20требования%20к%20ПК%20студента.pdf) To participate in the exam, the student should conduct a system test, turn on the camera and microphone, and confirm his/her identity. During the exam students are prohibited from any form of communication (by using social networks or with somebody else in the room), cheating, and using the internet. During the exam students are allowed to use calculator. An up to 1 (one) minute interruption in communication is considered as a short-term following which students may continue the exam. Interruption in communication of 1 (one) minute and more is considered as a long-term, following which students cannot continue their participation in the exam. Retaking the exam is similar to the exam as above.
• Optional Exam (for students wishing to improve their final grades)
  This is an oral exam based on the Webinar platform (https://webinar.ru/). Students must be online 15 minutes before the exam starts. The student’s computer must meet the following requirements: https://elearning.hse.ru/data/2020/05/07/1544135594/Технические%20требования%20к%20ПК%20студента.pdf) To participate in the exam, the student should conduct a system test, turn on the camera and microphone, and confirm his/her identity. During the exam students are prohibited from any form of communication (by using social networks or with somebody else in the room), cheating, and using the internet. During the exam students are allowed to use calculator. An up to 1 (one) minute interruption in communication is considered as a short-term following which students may continue the exam. Interruption in communication of 1 (one) minute and more is considered as a long-term, following which students cannot continue their participation in the exam. Retaking the exam is similar to the exam as above.

Interim Assessment

• 2021/2022 3rd module
  0.15 * Control work 1 (CW-1) + 0.25 * Seminars + 0.1 * Class attendance + 0.25 * Essay + 0.25 * Control work 2 (CW-2)

Bibliography

Recommended Core Bibliography

• Bank Guarantees in International Trade : The Law and Practice of Independent (First Demand) Guarantees and Standby Letters of Credit in Civil Law and Common Law Jurisdictions, Bertrams, R.I.V.F., 1998
• Banking crises, liquidity, and credit lines : a macroeconomic perspective, Singh, G., 2014
• Banking strategy, credit appraisal, and lending decisions : a risk-return framework, Bhattacharya, H., 2011
• Barry J. Eichengreen, Balazs Csonto, Asmaa A ElGanainy, & Zsoka Koczan. (2021). Financial Globalization and Inequality: Capital Flows as a Two-Edged Sword. IMF Working Papers.
• Cash and credit, Barker, D. A., 2011
• CIURLĂU, F. C. (2018). Financial Globalization and Economic Dynamics. Economics, Management & Financial Markets, 13(3), 340–350. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=132128343
• Counterparty credit risk and credit value adjustment : a continuing challenge for global financial markets, Gregory, J., 2012
• Credit risk management : basic concepts: financial risk components, rating analysis, models, economic and regulatory capital, Gestel van, T., 2009
• Credit risk measurement in and out of the financial crisis : new approaches to value at risk and other paradigms, Saunders, A., 2010
• Currency convertibility : the gold standard and beyond, , 2011
• Cyclical movements in the balance of payments, Chang, T. C., 2011
• Derivatives demystified : a step-by-step guide to forwards, futures swaps and options, Chisholm, A. M., 2010
• Dictionary of international trade finance : terms, Hammett, M., 2001
• Diehl, E., Clift, J., & International Monetary Fund. (2007). Financial Globalization : A Compilation of Articles From Finance & Development. Washington, D.C.: International Monetary Fund. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=449549
• Dora Hancock. (2017). International Finance : For Non-Financial Managers (Vol. 1st). Kogan Page.
• Exchange rates, capital flows and policy, , 2012
• Felix I. Lessambo. (2021). International Finance : New Players and Global Markets. Palgrave Macmillan.
• Financial derivatives : futures, forwards, swaps, options, corporate securities, and credit default swaps, Constantinides, G. M., 2015
• Financial globalization : growth, integration, innovation and crisis, Das, D. K., 2010
• Financial globalization and economic performance, , 2011
• Financial globalization and the emerging market economies, Das, D. K., 2012
• Forecasting and hedging in the foreign exchange markets, Ullrich, C., 2009
• Grahame Thompson. (2019). Financial globalization? History, conditions and prospects. Chapters, 32. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.h.elg.eechap.18293.2
• International finance : global edition, Eun, C. S., 2012
• International finance and open-economy macroeconomics : theory, history, and policy, Van den Berg, H., 2016
• International project finance : law and practice, , 2015
• Letters of credit and demand guarantees : defences to payment, Horowitz, D., 2010
• Letters of credit, Champion, S. R., 2017
• Models of balance of payments constrained growth : history, theory and empirical evidence, , 2012
• Money, currency and crisis : in search of trust, 2000 bc to ad 2000, , 2018
• Notes on options trading, Volkov, D., 2016
• One currency, two Europes, Dallago, B., 2016
• Owning development : creating policy norms in the IMF and the World Bank, , 2010
• Reform of the international monetary system : Why and how?, Taylor, J. B., 2019
• Reforming the World Bank : twenty years of trial - and error, Phillips, D. A., 2011
• Sovereign risk analysis, Heffernan, S. A., 2012
• Stanley, L. (2018). Emerging market economies and financial globalization: Argentina, Brazil, China, India and South Korea. Germany, Europe: London: Anthem Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.B6B463E6
• Structured credit products : credit derivatives & synthetic securitisation, Choudhry, M., 2010
• Studies in foreign exchange economics, Evans, M. D. D., 2017
• Successes of the International Monetary Fund : untold stories of cooperation at work, , 2009
• Systemic risk : the dynamics of modern financial systems, Gai, P., 2013
• The IMF and European economies : crisis and conditionality, Rogers, C., 2012
• The IMF and global financial crises : Phoenix rising?, Joyce, J. P., 2013
• The Russian Financial Crisis: Why was the Rouble Devaluation accompanied by Sovereign Debt Default?, Shpringel, V.K., 2005
• Understanding letter of credit : learner's guide to letter of credit, Koshal, N. S., 2017

Recommended Additional Bibliography

• Balance of payments and exchange rate theories, Miller, N. C., 2002
• Looking back at Russian financial crisis : Препринт (Working paper) #2001/029, Gurvich, E., 2001
• Russian banking : evolution, problems and prospects, , 2002
• United Kingdom balance of payments : the pink book, , 2008