Course overview
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.
Course learning outcomes
- Explain conceptually the organisation of foreign exchange markets
- Apply simple models of current account dynamics and exchange rates determination
- Analyse the causes of historical exchange rate movements with reference to the models covered in class
- Apply the models covered in class to analyse a range of current issues in international finance