ECON 4016 - International Finance IV (H)

North Terrace Campus - Semester 2 - 2015

This course typically deals with (i) the determinants of a country's current account; (ii) the importance of financial markets imperfections for international risk-sharing; (iii) sovereign debt and default; (iv) financial crises, including currency and banking crises, and their contagion.

  • General Course Information
    Course Details
    Course Code ECON 4016
    Course International Finance IV (H)
    Coordinating Unit School of Economics
    Term Semester 2
    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 2506, ECON 2507 or ECON 3510
    Restrictions Available only to students enrolled in the Bachelor of Economics (Honours) program
    Course Description This course typically deals with (i) the determinants of a country's current account; (ii) the importance of financial markets imperfections for international risk-sharing; (iii) sovereign debt and default; (iv) financial crises, including currency and banking crises, and their contagion.
    Course Staff

    Course Coordinator: Associate Professor Shandre Thangavelu

    Institute for International Trade, Level 6,
    10 Pulteney Street

    Tel: 83136900
    Email: shandre.thangavelu@adelaide.edu.au
    Course Timetable

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

  • Learning Outcomes
    Course Learning Outcomes
    1. Students will develop strong analytical and modeling skills to explore the key theories in international finance.

    2. Students will be able to undertake policy discussions and research on key global issues on international finance.

    3. Students will be able to read and understand journal articles and relate it to real issues.

    4. Students will be able to understand the key issues related to global financial system.

    5. Students will be able to undertake strong applied research in international finance.
    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. 1,2,3,4,5
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2,3,4,5
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1,2,3
    Skills of a high order in interpersonal understanding, teamwork and communication. 2,3,4,5
    A proficiency in the appropriate use of contemporary technologies. 1,2,3,4,5
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1,2,3,4,5
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 3,4,5
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 2,3,5
  • Learning Resources
    Required Resources
    Textbook: Krugman, Paul; Maurice Obstfeld; Marc Melitz. International Finance: Theory and Practice, 10th edition, Prentice-Hall

    Key Readings will be distributed at the lectures.
    Recommended Resources
    Further required readings will be distributed at the Lectures.
    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 assignments, tutorial discussions and presentations. The students are required to read journal articles and make presentation of the key methodology and results.


    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.

    Students will be actively engaged to discuss key issues and analytical frameworks of key economic models in international finance. They are required to read key papers and journal articles and present at tutorials. Students are also required to solve models and relate the results to key issues.


    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.

    Lecture 1: National Income and Balance of Payments: Money, Interest Rates, and Exchange Rates
    Lecture 2: Savings and Investments in an Open Economy
    Lecture 3: Inter-temporal trade and the Current Account
    Lecture 4: Current Account and Real Exchange Rates - Application to Australia and Asian Countries
    Lecture 5: Money and Exchange Rates: PPP and the Real Exchange Rate
    Lectures 6 and 7: Mundell-Fleming Model and Exchange Rates
    Lectures 7 and 8: Real Business Cycles: Two Country Open Economy
    Lectures 9 and 10: Financial Crises and Currency Crises
    Lectures 11 and 12: Developing Countries and International Policy Coordination
  • 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
                      
    Assignments and presentations:         20%  
    Participation:   10%
    Mid-term (or term paper):   30%
    Final Exam:   40%
    Assessment Detail
    Students are required to read journal articles, discuss key issues on international finance and present the key results during tutorials.

    Students need to demonstrate the ability to understand and articulate key economic issues related to international finance. Students are required to solve analytical and empirical models with reference to real issues.
    Submission
    Submission of assignments as per instructions on 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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