Delivered at:: School of Finance

Course type:: Elective course

When:: 3 year, 3 module

Instructors

Dobrynskaya, Victoria V.

Korablev, Denis

Full 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 the most popular currency investment strategies
Learn currency risk management techniques

Course Contents

Online part. 1. Introduction to international trade and finance
This online course is provided by readers of George Mason University, USA: https://www.mruniversity.com/courses/international-finance
Online part. 2. Exchange rates
This online course is provided by readers of George Mason University, USA: https://www.mruniversity.com/courses/international-finance
Online part. 3. Currency issues
This online course is provided by readers of George Mason University, USA: https://www.mruniversity.com/courses/international-finance
Online part. 4. The Euro crisis
This online course is provided by readers of George Mason University, USA: https://www.mruniversity.com/courses/international-finance
Online part. 5. International trade overview
This online course is provided by readers of George Mason University, USA: https://www.mruniversity.com/courses/international-finance
Online part. 6. Crises and responses to them
This online course is provided by readers of George Mason University, USA: https://www.mruniversity.com/courses/international-finance
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 quizzes
If 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

Interim assessment (3 module)
0.2 * 4 in-class quizzes + 0.05 * Class participation + 0.5 * Final test + 0.15 * Group project + 0.1 * Mid-term 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

Bachelor’s Programme 'Economics'

Contacts

International Finance