ECON 4016 - International Finance (H)

North Terrace Campus - Semester 1 - 2019

This course introduces students to the core tools and themes of open-economy business-cycle theory. The objectives of the course are to enable students to: i) critically evaluate the relevant models and empirical works in open-economy macroeconomics, and ii) apply these analytical tools themselves to investigate topical issues in international macroeconomics.

  • General Course Information
    Course Details
    Course Code ECON 4016
    Course International Finance (H)
    Coordinating Unit School of Economics
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 4 hours per week
    Available for Study Abroad and Exchange N
    Prerequisites ECON 3510, or ECON 2506 & ECON 2507
    Incompatible ECON 7100
    Restrictions Available only to students enrolled in the BEc(Hons) program
    Course Description This course introduces students to the core tools and themes of open-economy business-cycle theory. The objectives of the course are to enable students to: i) critically evaluate the relevant models and empirical works in open-economy macroeconomics, and ii) apply these analytical tools themselves to investigate topical issues in international macroeconomics.
    Course Staff

    Course Coordinator: Dr Nicolas Groshenny

    Course Coordinator: Dr. Nicolas Groshenny
    Course Timetable

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

  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

    1. Compute, describe and interpret business-cycle stylized facts around the world.
    2. Build and solve analytically simple theoretical equilibrium models of the current account.
    3. Build and solve numerically more complex Dynamic Stochastic General Equilibrium (DSGE) models of Small-Open Economies.
    4. Specify, estimate and identify empirical time series models (Structural Vector Auto-Regressions).
    5. Use the SVAR models as an empirical benchmark to evaluate theoretical (DSGE) models.
    6. Apply DSGE and SVAR models to a range of topical and policy relevant issues in open economy macroeconomics.
    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
    1-6
    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
    1-6
  • Learning Resources
    Required Resources
    Open Economy Macroeconomics, by Uribe and Schmitt-Grohe, 2017, Princeton University Press.
    Recommended Resources

    Recommended research articles will be advised during the course.

    Online Learning
    This course makes use of MyUni and you are required to check the website regularly.

    https://myuni.adelaide.edu.au/webapps/login/

  • Learning & Teaching Activities
    Learning & Teaching Modes
    The course includes 4 or 5 group assignments, as well as weekly seminar presentations and discussions. Students are required to read and replicate a few seminal papers and to make presentations on the key methodologies and results. There is also a Final Research Project at the end of the semester.
    Workload

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

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This translates to 12 hours per week for a semester course.

    To begin, students will learn the baseline empirical techniques to extract cyclical components of aggregate variables and to compute business cycle facts for open economies.

    Students will then learn how to solve analytically some simple theoretical models and relate the results to key issues. Finally, students will learn how to solve more complex macro models computationally using Matlab and the Dynare.

    In order to evaluate these theoretical models against some empirical benchmark, students will also learn the basics of the Specification, Estimation and, most importantly for the purpose of this course, Identification of Structural Vector Autoregressions models using the econometric software Eviews.

    In Lectures and in Seminars, students will be actively engaged to discuss topical and policy-relevant issues in international finance and to use models to discipline their thinking.

    Students will regularly present their work at the weekly Seminars.
    Learning Activities Summary
    Students will be introduced to key concepts and models of international finance. The students will also developed the necessary analytical skills for model applications and policy discussions.

    Further details will be provided at the beginning of the course.

    Teaching & Learning Activities Related Learning Outcomes
    Lectures (weekly, 2 hours) 1-6
    Seminars (weekly, 2 hours) 1-6


    Specific Course Requirements
    None.
  • 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
    Assessment Task Due Date/ Week Weight Length Learning Outcomes
    4 or 5 take-home group assignments  Every week (starting from week 2) 30% take-home every week 1-6
    Seminar presentation and discussion Every week (starting from week 2) 30% 30 min per week during seminar 1-6
    Final Research Project Week 14 40% take-home for about two weeks 1-6
    Total 100%
    Assessment Related Requirements
    Students are required to achieve a mark of at least 50% overall to pass the course.
    Assessment Detail
    Students are required: i) to read and replicate a few seminal articles; ii) to present and discuss key methodological issues and substantial results in open-economy macroeconomics during seminars.

    Students need to demonstrate the ability to understand and articulate key economic issues related to international finance. Students are required to solve (analytically or numerically) theoretical and to estimate empirical models with reference to real issues.
    Submission
    Submission of assignments will be as outlined in the  instructions provided on MyUni at the beginning of the course.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M11 (Honours Mark Scheme)
    GradeGrade reflects following criteria for allocation of gradeReported on Official Transcript
    Fail A mark between 1-49 F
    Third Class A mark between 50-59 3
    Second Class Div B A mark between 60-69 2B
    Second Class Div A A mark between 70-79 2A
    First Class A mark between 80-100 1
    Result Pending An interim result RP
    Continuing Continuing CN

    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

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