ECON 7044 - International Finance PG
North Terrace Campus - Semester 2 - 2017
General Course Information
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 Assumed Knowledge ECON 7071 Restrictions Available to MFin&BusEc, GCertAppEc, GCertIntEc, GDipIntEc, GDipAppEc, MAppEc, 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 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.
On successful completion of this course, students will be able to:
- Explain the organisation and institutional details of foreign exchange and international money markets.
- Explain and apply orthodox theories of exchange rates and open economy macroeconomics, up to and including the Dornbusch overshooting model.
- Explain and to give examples of modern central bank practice of monetary and exchange rate policy implementation
- Explain and apply insights provided by behavioural economics into expectations formation and decision making on the foreign exchange market.
- Analyse the causes of historical exchange rate movements, and some of the contributory factors to a variety of financial crises, with reference to the models covered.
- Apply the theories and models covered to the issue of optimal currency areas, with specific reference to the design and operation of the euro.
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) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1-6 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
1-6 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
1-6 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
4,5,6 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- Able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
1-6 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
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 ModesThe 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
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
Teaching & Learning Activities Related Learning Outcomes Lectures (2 x 1 hr) 1-6 Tutorials (1hr) 1-6
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.
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 Mundell-Fleming Model of Fixed and Floating Exchange Rates
Reading Provided via MyUni
Neoclassical Models 3 - The Dornbusch Overshooting Model of Floating Exchange Rates
Harvey - Chapter 2
Empirical evidence on these models and later developments
Reading provided via MyUni
Institutional and 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 Post-Keynesian Model
Harvey - Chapter 5
Expectations and Crises - theory and application
Harvey - Chapter 5
Further Real World Applications - volatility in the USD over time
Harvey - Chapter 6
Optimal Currency Areas, Monetary Sovereignty and the Euro-zone Experiment
Reading provided via MyUni
Specific Course RequirementsTo pass this course, students are required to achieve an overall mark of at least 50%.
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.
* Please note that the Course Learning Outcomes have been mapped into University Graduate Attributes above.
Assessment Task Due Date/ Week Weight Length(Word,Time) Learning Outcomes Bi-Weekly Assignments (Six Assignments) Weeks 3-14 40% TBA 1 - 6 Research Project (individual) Week 10 20% TBA 3 - 6 Final Exam Week 14 40% TBA 1 - 6 Total 100%
Assessment Related RequirementsTo pass this course, it is necessary to score a mark of at least 50% overall. There are no further requirements.
Assessment DetailNOTES 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.
SubmissionAssignments will be submitted via MyUni.
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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