Course Description

Course Name

International Finance: Theory and Practice

Session: VSOS3221

Hours & Credits

3 Credits

Prerequisites & Language Level

Taught In English

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

Overview

1. A Synopsis of the Course
This is an introductory course on the role of the financial system in
a market oriented economy. This course is designed to analyze how
financial institutions and markets are organized and contribute to enhancing
economic efficiency and welfare by mobilizing financial resources from
people who have an excess of funds and allocating them to those who have
a shortage.

The financial system is among the most heavily regulated sectors of
the economy. Among the financial institutions, banks are subject to the
heaviest regulations. Lectures and classroom discussion will examine the
rationale for financial regulation.

Despite the heavy and extensive regulations, financial institutions
and markets are prone to financial crises. The world economy has suffered
from global financial crisis and stagnation since 2007 from which it is yet
to recover. This course will investigate the extent to which students are able
to apply what they have learned n the class to understand the causes of the
global financial crisis.

2. Course Requirements
Students enrolling in this class should have an economics 2
background where they have taken undergraduate courses in either
principles of economics or macroeconomics.

This course will use as the main textbook,
?Economics of Money, Banking, and Financial Markets? 10th and
7th Editions (Global Editions) by Frederic S. Mishkin

3. The Lecture Schedule
Each session consists of two or three class lectures. Power point slides
and other materials prepared by the text book author and the
instructor will be posted on EKU-Course materials and Management,
but students are strongly urged to read chapters assigned to each
session.

Part One: The Role of Finance
Chapter 2: An Overview of the Financial System
Chapter 8: An Economic Analysis of Financial Structure

Part Two: Financial Markets: The Bond Market
Chapter 4: Understanding Interest Rates.
Chapter 5: Behavior of Interest Rates,
Chapter 6: Risk and Term Structure of Interest Rate

Part Three: The Stock and Foreign Exchange Market
Chapter 7: The Stock Market
Chapter 18: The Foreign Exchange Market

Part Four: Financial Institutions: Banks and Non-bank Financial
Institutions
Chapter10: Banking and the Management of Financial
Institutions
Chapter 13: Banking Industry: Structure and Competition
Chapter 12 (7th edition): Nonbank Finance3

Part Five: Financial Derivatives and Financial Crisis
Chapter 13 (7th edition): Financial Derivatives
Chapter 9: Financial Crisis in Advanced Economies
Chapter 10: Financial Crisis in Emerging Market
Economies

*Course content subject to change