Exchange Rates and International Finance
Essex Business School
Postgraduate: Level 7
Monday 13 January 2020
Friday 20 March 2020
25 September 2019
Requisites for this module
MSC N30112 International Finance
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.
The aim of this module is to provide students with an understanding of the
challenges and opportunities that global investments present for investors and
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
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.
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
||120 minutes during Summer (Main Period) (Main)
Module supervisor and teaching staff
Dr Theodora Bermpei & Dr Luiz Vitiello
Dr Nikolaos Papanikolaou
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).
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