|
Module Title |
International Finance
|
|
Module Code |
EF305
|
|
School |
DCUBS
|
Online Module Resources
|
| Module Co-ordinator | Mr William Kelly | Office Number | D105 |
|
Level |
3
|
Credit Rating |
5
|
|
Pre-requisite |
None
|
|
Co-requisite |
None
|
|
|
Module Aims
|
This course will examine the causes and consequences of exchange rate and interest rate fluctuations. It will explore a variety of analytical frameworks which set out to explain and predict persistent exchange rate volatility and examine some of the consequences and applications of these finding to international financial management.
|
|
Learning Outcomes
|
This course will be both theoretical and empirical. It will develop students' analytical abilities by demanding an understanding of the theories and their critical and analytical thinking by requiring students to discriminate in relation to the applicability of different theories. All students will be required - individually or in groups - to undertake assignments which will involve research into and/or investigation of some aspect of international finance.
|
|
Indicative Time Allowances
|
|
|
Hours
|
|
Lectures |
24
|
|
Tutorials |
8
|
|
Laboratories |
0
|
|
Seminars |
0
|
|
Independent Learning Time |
43
|
|
|
|
|
Total |
75
|
|
Placements |
|
|
Assignments |
|
|
|
NOTE
|
Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.
|
|
Indicative Syllabus
|
|
Introduction: Foreign exchange markets: participants, institutions, and structures.
Models of exchange rate variability:
¿ Purchasing Power Parity: Law of one price; Absolute and relative PPP; Real disturbances; Productivity increases; Testing for PPP.
¿ Monetary Models of Exchange Rate Determination: Covered and uncovered interest parity; Exchange rate expectations; Flexible price models; Dornbusch sticky price model and overshooting.
¿ Portfolio Balance Models: Risk premiums; Portfolio balance and the current account; Exchange rate "management" and portfolio balance; Money vs. bond financed fiscal expansion and exchange rates.
¿ Market Efficiency and Rational Expectations: Testing efficiency of forex markets; Existence of risk premiums; "News" and exchange rate volatility.
Exchange Rate Regimes: Evaluation of exchange rate regimes
Applications to financial management: Case studies
|
| Assessment | | Continuous Assessment | 20% | Examination Weight | 80% |
|
|
Indicative Reading List
|
|
Gibson, Heather D, International Finance, Longman, 1996
Pilbeam, K., International Finance (2nd ed.). Macmillan, 1998.
Eun, Cheol S & Bruce G Resnick, International Financial Management, McGraw-Hill, 1998.
|
|
|
|
Programme or List of Programmes
|
| AF | BA in Accounting & Finance |
| BS | Bachelor of Business Studies |
| BSI | Business Studies ( with INTRA ) |
| BSSA | Study Abroad (DCU Business School) |
| BSSAO | Study Abroad (DCU Business School) |
| EBF | BA in European Business (French) |
| EBG | BA in European Business (German) |
| EBS | BA in European Business (Spanish) |
| EBT | BA in European Business (Trans.Studies) |
| ECSA | Study Abroad (Engineering & Computing) |
| ECSAO | Study Abroad (Engineering & Computing) |
| HMSA | Study Abroad (Humanities & Soc Science) |
| HMSAO | Study Abroad (Humanities & Soc Science) |
| IBLFG | BA in Inter. Business & Lang. (Fr/Ge) |
| IBLFS | BA in Inter. Business & Lang. (Fr/Sp) |
| IBLGS | BA in Inter. Business & Lang. (Ge/Sp) |
| IBLJ | BA in Inter. Business & Lang. (Japanese) |
| SHSA | Study Abroad (Science & Health) |
| SHSAO | Study Abroad (Science & Health) |
| Archives: | |
