Exchange Rates and International Finance

The details
Essex Business School
Colchester Campus
Postgraduate: Level 7
Monday 13 January 2020
Friday 20 March 2020
25 September 2019


Requisites for this module



Key module for

MSC N30112 International Finance

Module description

The aim of this module is to provide students with an understanding of international
arbitrage relationships, models of exchange rate determination, and recent issues
and debates in the international finance literature. By the end of this module, you
should be able to describe the basic international parity relationships, outline some
of the basic models of exchange rate determination, and have a good grasp of
current issues in international financial markets, and be able to critically evaluate the
empirical literature on international finance puzzles.

This module is quantitative in nature. Hence it requires some mathematical
derivations and statistical analyses. Although some concepts will be discussed in
class, you are expected to be familiar with basic and intermediate concepts in
macroeconomics and statistics/econometrics. Familiarity with basic and intermediate
notions in investments and portfolio management is also encouraged.

Module aims

The aim of this module is to provide students with an understanding of the
challenges and opportunities that global investments present for investors and
portfolio managers.

Module learning outcomes

On successful completion of the module, students will be able to:
-Describe the basic international arbitrage relationships and understand why
deviations from these may occur.
-Analyse some of the basic models of exchange rate determination.
-Be able to discuss some of the recent issues in international finance
-Evaluate critically the core empirical literature related to the fundamental debates on international finance puzzles

Module information

Skills for Your Professional Life (Transferable Skills)

-Improve your analytical (research) and problem-solving skills by applying models to explain trends in the data and answer model questions.
-Improve your oral communication skills by communications in the classes
-Develop your critical thinking by critically evaluating existing models and their
applicability to the real-life data.

Learning and teaching methods

Two-hour lectures per week for ten consecutive weeks. Where the course covers empirical debates, it is essential that you read key journal articles cited in lectures


  • Hallwood, Paul; MacDonald, Ronald. (2000) International money and finance, Malden, Mass: Blackwell.
  • Pilbeam, Keith. (2013) International finance, Basingstoke: Palgrave Macmillan.

The above list is indicative of the essential reading for the course. The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students. Further reading can be obtained from this module's reading list.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Weighting
Written Exam In-class Test 100%
Exam 120 minutes during Summer (Main Period) (Main)

Overall assessment

Coursework Exam
30% 70%


Coursework Exam
0% 100%
Module supervisor and teaching staff
Dr Theodora Bermpei & Dr Luiz Vitiello



External examiner

Dr Nikolaos Papanikolaou
Bournemouth University
Senior Lecturer in Accounting & Finance
Available via Moodle
Of 24 hours, 22 (91.7%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).


Further information
Essex Business School

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