International Finance

2024/2025

Academic Year

ENG

Instruction in English

3

ECTS credits

Delivered by:

School of Finance

Type:

Elective course

When:

3 year, 3 module

Instructors

Dobrynskaya, Victoria V.

Kokurina, Aglaia

Course Syllabus

Abstract

This course follows the course Financial Economics and provides a deeper understanding of international financial markets and exchange rate determination. We will discuss who are the main players in the foreign exchange market, what are the major instruments, and what is the structure of these markets. We will study the major models of exchange rate determination and look into the main determinants of foreign exchange fluctuations. We will study currency investment strategies, such as the carry trade, currency momentum and value strategies. We will discuss empirical evidence of profitability and risks of these strategies. We will also talk about the main mechanisms of currency hedging.

Learning Objectives

• The aim of the course is to familiarize students with the foreign exchange market, the dynamics of exchange rates and factors affecting exchange rates. Students will learn the most popular currency investment strategies and currency risk management techniques.

Expected Learning Outcomes

• Students will know the basic terminology, concepts and history of the foreign exchange market.
• Students will know theories and factors of exchange rate determination, various currency investment strategies and international asset pricing models.

Course Contents

• Online part
• Offline part

Assessment Elements

• Mid-term test
  Mid-term multiple-choice test covers the material of the online part.
• Group project
  Students are expected to conduct a mini-research and prepare a presentation in class.
• Quizzes
• Class participation
• Final test

Interim Assessment

• 2024/2025 3rd module
  0.5 * Class participation + 0.05 * Final test + 0.15 * Group project + 0.1 * Mid-term test + 0.2 * Quizzes

Bibliography

Recommended Core Bibliography

• Currencies and crises, Krugman, P. R., 1998
• International economics : theory & policy, Krugman, P. R., 2012
• International financial management, Madura, J., 2020
• International macroeconomics and finance : theory and econometric methods, Mark, N. C., 2005
• Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Economics: Theory and Policy, Global Edition (Vol. Eleventh edition). New York: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1649946

Recommended Additional Bibliography

• International economics : theory & policy, Krugman, P. R., Obstfeld, M., 2009

Authors

• Dobrynskaia Viktoriia VLADIMIROVNA