ECON 3510 - International Finance III
North Terrace Campus - Semester 2 - 2020
General Course Information
Course Code ECON 3510 Course International Finance III Coordinating Unit School of Economics Term Semester 2 Level Undergraduate Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Available for Study Abroad and Exchange Y Assumed Knowledge ECON 1012 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. There will be discussions of relevant current events relating to Australia, our main trading partners and the rest of the world.
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 Outcomes
On successful completion of this course, students will be able to:
- Explain the organisation and institutional details of foreign exchange and international money markets.
- Apply, at a formal level, the main neoclassical models of exchange rate determination, and assess their empirical validity.
- Describe and apply insights provided by behavioural economics into expectations formation and decision making on the foreign exchange market.
- Apply a heterodox macroeconomic model to exchange rate forecasting.
- 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.
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)
1-5 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
1-5 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
1-5 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
1-5 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
1-5 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
Required ResourcesCurrencies, 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 Harvey, 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 would be of value to course participants in the early part of this course 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 will be provided via the above site, during the course.
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 be primarily based on problem solving and discussions, in preparation for your final examination
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.
Lectures: 2 Hours per week
Tutorials: 1 Hour per week
Home study expectation: 6 Hours per week
Learning Activities Summary
Teaching & Learning Activities Related Learning Outcomes Lectures 1-5 Tutorials 1-5
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 Plan 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 Dornbusch Overshooting Model of Floating Exchange Rates Harvey - Chapter 2 5 Institutional and behavioural economics and decision making in the foreign exchange market Harvey - Chapter 3 6 Complexity theory and exchange rates Reading provided via MyUni 7 Capital Flows and Exchange Rates Harvey - Chapter 4 8 Exchange Rate Modelling using a Post-Keynesian Model Harvey - Chapter 5 9 Expectations and Crises - theory and application Harvey - Chapter 5 10 Optimal Currency Areas, Monetary Sovereignty and the Euro-zone Experiment Reading provided via MyUni 11 Further Real World Applications Harvey - Chapter 6 12 Review Reading provided via MyUni
Specific Course RequirementsNone.
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 Summary* Please note that the Course Learning Outcomes have been mapped into University Graduate Attributes above. Teamwork is not being explicitly assessed within this course. However, it is assessed in a variety of other courses completed by the same students, often with the same lecturer. For example, many of these students also complete ECON 2508, which includes an extensive group assignment which necessitates effective teamwork.
Assessment Task Due Date/ Week Weight Length Course Learning Outcomes Tutorial Active Participation Weeks 2-12 5% NA 1-5 Bi-weekly Assignments (Best 5 from 6 in-course Assessments) Weeks 2-12 35% TBA 1-5 (gradually across the semester) End of Course Essay Week 12 20% TBA TBA Final Exam Week TBA (See exam timetable) 40% TBA 1-5 (emphasis on 4-5) Total 100%
Assessment Related RequirementsTo pass the course, students must achieve at least 50% of the marks overall. There is no separate requirement relating to the final examination.
Assessment DetailNOTES 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 an alternative examination.
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.
Students will be assessed based on the following:
Assessment 1- Bi-Weekly Assignments (Six Assignments), to be submitted on-line.
Continuous learning, both summative and formative assessment
Assessment 2 - End of course essay. Both summative and formative assessment.
Assessment 3 - Final Exam.
SubmissionAssignments are to be submitted on-line by Friday midnight on the week they are due.
Assignments will generally be marked within nine days of the date for submission.
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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