Delivered at:: School of Finance

Course type:: Elective course

When:: 3 year, 3 module

Instructors

Verem, Irina Y.

Dobrynskaya, Victoria V.

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

The aim of the course is to familiarize students with the foreign exchange market, the dynamics of exchange rates and factors affecting exchange rates. Students will learn the most popular currency investment strategies and currency risk management techniques.

Expected Learning Outcomes

Students will know the basic terminology, concepts and history of the foreign exchange market.
Students will know theories and factors of exchange rate determination, various currency investment strategies and international asset pricing models.

Course Contents

Online part
Offline part

Assessment Elements

Mid-term test
Mid-term multiple-choice test covers the material of the online part.
Final test
Quizzes
Group project
Students are expected to conduct a mini-research and prepare a presentation in class.
Class participation

Interim Assessment

2022/2023 3rd module
0.15 * Group project + 0.1 * Mid-term test + 0.2 * Quizzes + 0.5 * Final test + 0.05 * Class participation

Bibliography

Recommended Core Bibliography

Currencies and crises, Krugman, P. R., 1998
International economics : theory & policy, Krugman, P. R., 2012
International financial management, Madura, J., 2020
International macroeconomics and finance : theory and econometric methods, Mark, N. C., 2005
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Economics: Theory and Policy, Global Edition (Vol. Eleventh edition). New York: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1649946

Recommended Additional Bibliography

International economics : theory & policy, Krugman, P. R., Obstfeld, M., 2009

Bachelor’s Programme 'Economics'

Contacts

International Finance