International Money and Finance
Module code: EC7075
Module co-ordinator: Dr Deborah Gefang
Description
This course aims to cover the issues involved in international finance and economics, and the mechanics of currency markets, which are essential for students who are interested in future careers in financial institutions, Central Banks and Ministries of Finance/Economics, as well as in multinational companies.
Topics Covered
- Exchange rate
- Balance of payments
- Prices in the open economy
- Financial markets in the open economy
- Open economy macroeconomics
- Monetary model
- Mundell-Fleming model
- Dornbusch model
- Currency substitution
- Optional currency areas and monetary union
- Market efficiency and rational expectations
- The ‘news’ model and exchange rate volatility
- The risk premium
- Uncertainty: non-linearity, cycles and chaos
- Target zones
- Crises and credibility
Learning
- 20 one hour lectures
- 5 one hour tutorials
Assessment
This module is worth 15 credits. It will be assessed by means of coursework worth 20% and a one and a half hour examination accounting for the remaining 80%.