Course Description

Course Name

International Finance

Session: VSOS3221

Hours & Credits

3 Credits

Prerequisites & Language Level

Taught In English

  • There is no language prerequisite for courses at this language level.

Overview

Course Description
This course provides a basic knowledge of international nance. Emphasis is on techniques of nancial decision making and policy analysis covered in the course. Topics include the law of one price, arbitrage-free transaction, nancial markets in the open economy, exchange rate determination, macroeconomic policy and nancial crises.

Topics
1. Basic Tools
(a) Arbitrage and nancial decision making (b) The time value of money (c) Interest rates
2. Introduction
(a) Exchange rate and Foreign currency market
3. Arbitrage-free approach
(a) Prices in the open economy: PPP (b) Uncovered and covered interest rate parity conditions (c) General equilibrium approach
4. Open macroeconomics
(a) Fixed prices: the Keynesian and Mundell-Fleming models (b) Sticky prices: the Dornbush model
5. Financial crisis
(a) Optimum currency areas and monetary union (b) Crisis and credibility
6. Financial Derivatives
(a) Currency swap (b) Interest rate swap (c) Futures (d) Forwards

Textbook
Robert C. Feenstra and Alan M. Taylor, International Economics, Worth, Second Edition

*Course content subject to change