ECON 7044 - International Finance PG

North Terrace Campus - Semester 2 - 2016

The course information on this page is being finalised for 2016. Please check again before classes commence.

This course deals with the analysis of three important and related macroeconomics issues in open economies: exchange rates, capital flows and financial crises. The objectives of the course are two-fold: to introduce and critically evaluate the main relevant economic theories, models and empirical works in these three key areas of International Finance; and to apply these analytical tools to build an understanding of relevant economic developments and policy issues in the global markets. The basic tenets of international finance are presented through a core textbook, assigned readings and online lectures. Practical applications of theory to current world events, policy assessment and research advances in the field will be discussed in detail during the weekly seminar.

  • General Course Information
    Course Details
    Course Code ECON 7044
    Course International Finance PG
    Coordinating Unit School of Economics
    Term Semester 2
    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 7071
    Assumed Knowledge ECON 7011
    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 three important and related macroeconomics issues in open economies: exchange rates, capital flows and financial crises. The objectives of the course are two-fold: to introduce and critically evaluate the main relevant economic theories, models and empirical works in these three key areas of International Finance; and to apply these analytical tools to build an understanding of relevant economic developments and policy issues in the global markets. The basic tenets of international finance are presented through a core textbook, assigned readings and online lectures. Practical applications of theory to current world events, policy assessment and research advances in the field will be discussed in detail during the weekly seminar.
    Course Staff

    Course Coordinator: Dr Steven Hail

    Office location: Nexus 10, Level 3, Room 3.34
    Telephone: 8313 5671

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    This 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 facing 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

    No information currently available.

  • Learning Resources
    Required Resources

    Currencies, Capital Flows and Crises, John T. Harvey, Routledge (London and New York), 2009

    Recommended Resources

    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 Learning
    MyUni - http://www.myuni.adelaide.edu.au

    Other online Resources:
    WTO: http://www.wto.org 
    UNCTAD: http://www.unctad.org 
    OECD: http://www.oecd.org 
    International Center for Trade and Sustainable
    Development: http://www.ictsd.org 
    The World Bank: http://www.worldbank.org 
    Alan Deardorff’s Glossary of International Economics Terms:
    http://www.personal.umich.edu/~alandear/glossary
  • Learning & Teaching Activities
    Learning & Teaching Modes
    The lectures will closely follow the readings provided on-line, and the 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 tutorials 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 difficulty in the PG tutorials will reflect the normal expectation on a postgraduate course in international finance
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Postgraduate Tutorials: 1 Hour per week (from Week 2)

    Lectures: 2 Hours per week (from Week 1)

    Home Study Expectation: 6 Hours per week (at least)
    Learning Activities Summary
    Please note, the following schedule is tentative. Changes can and will be made throughout the semester as necessary, and all changes will be published on MyUni. Supplementary reasings will also be provided on MyUni.

     
    WEEK/
    TOPIC/
    CORE READINGS

    1
    Course Overview: Introduction to Basic Concepts in International Finance and Foreign Exchange Markets
    Harvey - Chapter 1 and a Reading Provided via MyUni

    2
    International Parity Relationships
    Reading Provided via MyUni

    3
    Neoclassical Models 1 -The Monetary Model of Floating and Fixed Exchange Rates
    Harvey - Chapter 2

    4
    Neoclassical Models 2 - The Mundell-Fleming Model of Fixed and Floating Exchange Rates
    Reading Provided via MyUni

    5
    Neoclassical Models 3 - The Dornbusch Overshooting Model of Floating Exchange Rates
    Harvey - Chapter 2

    6
    Empirical evidence on these models and later developments
    Reading provided via MyUni

    7
    Institutional and behavioural economics and decision making in the foreign exchange market
    Harvey - Chapter 3

    8
    Capital Flows and Exchange Rates
    Harvey - Chapter 4

    9
    Exchange Rate Modelling using a Post-Keynesian Model
    Harvey - Chapter 5

    10
    Expectations and Crises - theory and application
    Harvey - Chapter 5

    11
    Further Real World Applications - volatility in the USD over time
    Harvey - Chapter 6

    12
    Optimal Currency Areas, Monetary Sovereignty and the Euro-zone Experiment
    Reading provided via MyUni
    Specific Course Requirements
    To pass this course, students are required to achieve an overall mark of at least 50%.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Students will be assessed based on the following:


    Bi-Weekly Assignments (Six Assignments) 30%
    Weekly, weeks 2-12, to be submitted on-line
    Continuous learning, both summative and formaative assessment.


    Group Assignment 20%
    Due on-line by Friday 5pm in Week 11.
    Formative assessment 


    Final Exam 40% See Exam Timetable
    Summative assessment


    * Please note that the Course Learning Outcomes have been mapped into University Graduate Attributes above.
    Assessment Related Requirements
    To pass this course, it is necessary to score a mark of at least 50% overall. There are no further requirements.
    Assessment Detail
    NOTES ON ASSESSMENT

    1. Professionally presented answers, and where relevant 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, and marks will be deducted for poorly presented assignments..

    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.

    EXAMINATIONS 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 into the examination a CALCULATOR.
    Submission
    Assignments will be submitted via MyUni.
    Course Grading

    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.

  • Student Feedback

    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.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

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