ECON 7044 - International Finance PG
North Terrace Campus - Semester 1 - 2015
General Course Information
Course Code ECON 7044 Course International Finance PG 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 Available for Study Abroad and Exchange Y 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: first to introduce the main concepts, principles and models in the theory and empirical works in those two key areas of International Finance; second to apply analytical tools to understand the relevant policy issues in the global markets.
The basic tenets of international finance are presented through the textbook, assigned readings and online lectures. Practical applications of theory to current world events, policy assessment and research advances in the field are discussed in detail during the weekly seminar.
Course Coordinator: Dr Steven Hail
Office location: Nexus 10, Level 3, Room 3.34
Telephone: 8313 5671
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
Currencies, Capital Flows and Crises, John T. Harvey, Routledge (London and New York), 2009
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 Exchange Rates and International Finance, (4th or 5th Edition) Laurence Copeland, Prentice Hall/Financial Times (Pearson Education), 2005/8.
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 for the related undergraduate course - which you are not required to attend, but you are strongly advised to watch on MyUni if you choose not to attend - 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 seminars will build each week on the material covered during the previous week's lectures, and will be based either on a more advanced treatment of what has been covered in the lectures, or a discussion of a related academic paper or current events.
The degree of difficult in the PG seminars and tutorials will reflect the normal expectation on a postgraduate course in international finance.
The tutorial will be primarily based on problem solving in preparation for your written assessments and your final examination.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
Seminars: 1 Hour per week
Lectures: 2 Hours per week (on line or in person)
Tutorials: 1 Hour per week
Home study expectation: 6 Hours per week (at least)
Learning Activities Summary
WEEKLY ACTIVITIES IN LECTURES AND POSTGRADUATE SEMINARS
Course Overview: Introduction to Basic Concepts in International Finance and Foreign Exchange Markets
Harvey - Chapter 1 and a Reading Provided via MyUni
International Parity Relationships
Reading Provided via MyUni
Neoclassical Models 1 -The Monetary Model of Floating and Fixed Exchange Rates
Harvey - Chapter 2
Neoclassical Models 2 - The Dornbusch Overshooting Model of Floating Exchange Rates
Harvey - Chapter 2
Empirical evidence on these models and later developments
Reading provided via MyUni
Behavioural economics and decision making in the foreign exchange market
Harvey - Chapter 3
Capital Flows and Exchange Rates
Harvey - Chapter 4
Exchange Rate Modelling using a Keynesian Model
Harvey - Chapter 5
Expectations and Currency Crises
Harvey - Chapter 5
Real World Applications - volatility in the USD over time
Harvey - Chapter 6
Real World Applications - the Peso (1994) and Asian (1997) crises
Harvey - Chapter 6
Currency Areas and the Euro-zone Experiment
Readings provided via MyUni
Seminar on the Euro-zone.
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:
Weekly Tutorial Assignments 30% Group Assignment #2 Due in Seminar in Week 12 20% Final Exam 50%
Assessment Related RequirementsThe best 8 out of 10 weekly tutorial assignments form the basis of this part of your grade.
No part of your assessment is redeemable in the final examination.
You are expected to submit both the weekly assignments and the group assignment on time, unless you have prior approval from the course co-ordinator to do otherwise.
The non-submission of assignments will lead to a zero grade for that element in your overall assessment.
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 in weekly tutorials, and in the seminar in week 12 (for the group assignment).
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.Additional Assessment
If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
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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