ECON 7044 - International Finance IIID
North Terrace Campus - Semester 1 - 2014
General Course Information
Course Code ECON 7044 Course International Finance IIID Coordinating Unit School of Economics Term Semester 1 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Prerequisites ECON 7011 & ECON 7071 Restrictions Available to MFin&BusEc, ProCertPubPolicy, GradCertEc, GradCertIntEc, GradDipIntEc, GradDipAppEc, MAppEc, MAppEc(Int) & MAppEc(PubPolicy) students only Course Description This course deals with the analysis of two important and related macroeconomics issues in open economies: the exchange rate and the capital flows. The objectives of the course are two-fold: to introduce the main concepts, principles and models in the theory and empirical works in those two key areas of International Finance; to apply analytical tools to understand the relevant policy issues in the global markets. Based on additional reading materials, discussions on relevant current events from various parts of the globe will be carried out.
Course Coordinator: Dr Raul Barreto
Office location: Nexus 10, Level 4, Room 4.26
Telephone: 8313 3240
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesThis course deals with the analysis of selected macroeconomic issues in open economies. The outcomes of the course are three-fold:
1 Investigating new ideas:
To provide participants with a broad overview and understanding at an intermediate level of the development of modern theories of exchange rates and international finance
2 Confidence to investigate new ideas:
Using the tools studied, to better think laterally about the fundamental issues facings global financial markets
3 Opportunities for practical implementation of the concepts:
To apply these theories as analytical tools to understand a range of relevant policy issues in global foreign exchange and capital markets
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1-3 The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1-3 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1-3 Skills of a high order in interpersonal understanding, teamwork and communication. 1-3 A proficiency in the appropriate use of contemporary technologies. 1-3 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1-3 A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1-3 An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1-3
Exchange Rates and International Finance, (4th or 5th Edition) Laurence Copeland, Prentice Hall/Financial Times (Pearson Education), 2005/8
There are several other texts which could have been used on this course. None are recommended here as substitutes to Copeland, since the different texts use a variety of approaches to the models to be discussed, and this can be a source of confusion. Nevertheless
One supplementary text which is of value to course participants is An Introduction to International Money and Foreign Exchange Markets, by Charles Van Marrewijk. It provides particularly good discussions of purchasing power parity and interest rate parity.
It is available at http://www.economics.adelaide.edu.au/research/papers/doc/econwp04-02.pdf
Online LearningMyUni - http://www.myuni.adelaide.edu.au
Other online Resources:
International Center for Trade and Sustainable
The World Bank: http://www.worldbank.org
Alan Deardorff’s Glossary of International Economics Terms:
Learning & Teaching Activities
Learning & Teaching Modes
The lectures will closely follow this text. The idea is that the lectures and the text should reinforce each other. You are strongly advised to keep up with the reading. You will find that the lectures are far easier to follow if you have already been exposed to the material via the text.
The tutorial will be primarily based on problem solving in preparation for your assessment.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
Lectures: 2 Hours per week
Tutorials: 1 Hour per week
Home study expectation: 6 Hours per week
Learning Activities Summary
Week Course Plan TOPIC READINGS 1 Course Overview
Introduction to Basic Concepts in International Finance
Copeland - Chapter 1 & 2 2 Financial Markets in the Open Economy Copeland - Chapter 3 3 Open Economy Macro Copeland – Chapter 4 4 Flexible Prices: The Monetary Model of Floating Exchange Rates Copeland – Chapter 5 5 Flexible Prices: The Monetary Model of Floating Exchange Rates Copeland – Chapter 5 (cont) 6 Fixed Prices: The Mundell-Fleming
Model with Imperfect Capital Mobility
Copeland – Chapter 6 7 Fixed Prices: The Mundell-Fleming
Model with Imperfect Capital Mobility
Copeland – Chapter 6 (cont) 8 Review Copeland – Chapters 1-6
(Week 1 to Week 7 materials)
9 Sticky Prices: The Dornbusch Model Copeland – Chapter 7 10 Sticky Prices: The Dornbusch Model Copeland – Chapter 7 (cont) 11 Sticky Prices: The Dornbusch Model Copeland – Chapter 7 (cont) 12 Currency Areas and Monetary union Copeland – Chapter 13
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment SummaryStudents will be assessed based on the following:
Mid-semester Test 30% Group Assignment #1 10% Group Assignment #2 10% Final Exam 50%
Assessment Related Requirements
All marks received prior to the final examination are equated into your final grade only if they represent improvement over your final examination grade. For example, should you score 80/100 on the mid-term, 60/100 on your assignment #1, 100/100 on your assignment #2 and 70/100 on the final, your final grade would be credit at (0.30*80+0.10*60+0.10*100 +0.50*70=) 75/100. More will be explained about this throughout the semester. Since all marks received prior to the final examination are redeemable, you have nothing to lose and everything to gain by attending tutorials and doing your best on all of the assessments.
Should you miss either mid-semester examination for whatever reason, your final examination will be worth 30% more per missed mid-semester exam. You need not excuse yourself for your absence, as there will be no make-ups under any circumstances. This same policy applies to the assignment. Whatever you miss simply adds additional weight to the final.
NOTES ON ASSESSMENT
1. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks cannot be awarded for handwriting that cannot be read.
2. Assessment marks prior to the final exam may be displayed on the course website through Myuni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.
It is each student's responsibility to read the examination timetable. Misreading the timetable is not accepted as grounds for granting a supplementary exam. University staff are not permitted to provide examination times to students over the telephone or in response to personal enquiries.
Students may NOT take into the examination a DICTIONARY (English or English-Foreign)
Students may NOT take a CALCULATOR.
Assignments are to be submitted via the Professions Undergraduate Hub on Ground Level of Nexus 10.
Assignments will generally be returned during tutorials/lectures the week following submission.
Students must not submit work for an assignment that has previously been submitted for this course or any other course without prior approval from the lecturer-in-charge.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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