View
214
Download
0
Category
Preview:
Citation preview
8/19/2019 ECON 352-International Finance-Syed M Hussain
1/2
Lahore University of Management Sciences
ECON 352 – International FinanceSpring 2016
Instructor Syed Muhammad Hussain
Room No. 260
Office Hours TBA
Email Muhammad.hussain@lums.edu.pk
Telephone
Secretary/TA
TA Office Hours
Course URL (if any)
Course Basics
Credit Hours 4
Lecture(s) Nbr of Lec(s) Per Week 2 Duration 110 minutesRecitation/Lab (per week) Nbr of Lec(s) Per Week Duration
Tutorial (per week) Nbr of Lec(s) Per Week Duration
Course Distribution
Core
Elective
Open for Student Category
Close for Student Category
COURSE DESCRIPTION
The main objective of this course is to provide you with a clear understanding of the foundations of internationalfinance by using a blend of theoretical concepts and real world applications such as balance of payments problemsand policies and the causes of exchange rate movements. In addition, we will also examine some current policy-related issues that have taken center stage in international media. For example, Which exchange rate regime isbetter: fixed or flexible? What are the benefits and costs of forming a monetary union? Why have there beenexchange-rate crises in Asia, Russia and South America in late 1990s? How can the international monetarysystem be reformed and improved? By the end of the course you should be able to understand basic analysisof open economy models, apply this analysis to address key policy issues and take interest in the debates thatmakes this area so exciting and fascinating.
COURSE PREREQUISITE(S)
•
•
•
Intermediate Macroeconomics
COURSE OBJECTIVES
•
•
•
To introduce students to the basic concepts of international finance including exchange rates and foreign exchange markets.
To enable students to analyze graphical and basic mathematical models of open economy.
To study real world problems in lights of topics learnt in the course.
Learning Outcomes
mailto:Muhammad.hussain@lums.edu.pkmailto:Muhammad.hussain@lums.edu.pkmailto:Muhammad.hussain@lums.edu.pk
8/19/2019 ECON 352-International Finance-Syed M Hussain
2/2
Lahore University of Management Sciences
•
•
•
At the end of this course, we will discuss the experience of various developing countries and see how the theoretical models
explain the success and failure stories of these countries. We will also discuss some of the recent developments in Pakistan and
rationalize them using the tools we will have by then.
Grading Breakup and Policy
Quiz(s): 6 (one will be dropped) – 30%
Midterm Examination: 30%
Final Examination: 40%
Examination Detail
Midterm
Exam
Yes
Final Exam
Yes
COURSE OVERVIEW
Week TopicsRecommended
Readings
Objectives/
Application
1-6
Foreign Exchange Markets, Balance of
Payments, Exchange rates, Interest Rate Parity,
International Capital Flows.
Melvin (chapters 1 – 5)
Krugman & Obstfeld (chapters 12 –
15)
7-8
Output and Exchange Rates in the Short Run –
The DD-AA model
Krugman & Obstfeld (chapter 16)
9-10
Fixed Exchange Rates and Foreign Exchange
Intervention
Krugman & Obstfeld (chapter 17)
11 History of International Monetary System Krugman & Obstfeld (chapter 18)
12Floating Exchange Rates Regimes Krugman & Obstfeld (chapter 19)
13-14
Special Topics in International Finance
(Optimum Currency Areas, Experience of
Developing Countries)
Krugman & Obstfeld (chapters 20,
22)
Textbook(s)/Supplementary Readings
International Money and Finance, 7th edition, Michael Melvin.
International Economics: Theory and Policy, 6th edition, Krugman and Obstfeld.
Recommended