International Finance - JEB050

• Anglický název: International Finance
• Zajišťuje: Institut ekonomických studií (23-IES)
• Fakulta: Fakulta sociálních věd
• Platnost: od 2008 do 2013
• Semestr: letní
• E-Kredity: 5
• Způsob provedení zkoušky: letní s.:
• Rozsah, examinace: letní s.:2/0, Zk [HT]
• Počet míst: neomezen / neurčen (neurčen)
• Minimální obsazenost: neomezen
• 4EU+: ne
• Virtuální mobilita / počet míst pro virtuální mobilitu: ne
• Stav předmětu: vyučován
• Jazyk výuky: angličtina
• Způsob výuky: prezenční
• Způsob výuky: prezenční
• Další informace: http://ies.fsv.cuni.cz/en/syllab/JEB050
• Poznámka: předmět je možno zapsat mimo plán; povolen pro zápis po webu; při zápisu přednost, je-li ve stud. plánu
• Garant: doc. Ing. Vladimír Benáček, CSc.
• Vyučující: doc. Ing. Vladimír Benáček, CSc.
• Třída: Courses for incoming students
• Prerekvizity : JEB004

Anotace

čeština

Poslední úprava: Ing. Vilém Semerák, M.A., Ph.D. (20.02.2024)

Tento kurz je v současnosti vyučován jen v anglickém jazyce.
Výuka bude v letním semesteru akad. roku 2023/2024 probíhat pouze prezenčně.
Detailní informace ke kurzu jsou k dispozici na moodle stránkách (přístupový kód bude sdělen během první přednášky, případně je možné o něj požádat vyučujícího).

This course covers, with a focus on both theory and empirics, basic topics in international finance (exchange rate economics & international macroeconomics) at undergraduate level. The course does not deal with international business methods (logistics, use of letters of credits etc.), instead it focuses on theory and policy analysis and attempts to provide some insight into questions such as the following ones:
• How closely (and in which ways) are international financial transactions linked to national economies and international trade?
• Why determines exchange rates?
• How do national economic policies influence external equilibrium of an economy?
• What effect have different foreign exchange policies and foreign exchange arrangements have on economic stability and economic growth?
• What causes balance of payments crises/international financial crises?
• When it is optimal for several countries to share one currency?
• How many global currencies do we really need?

The course is a logical complement to the International Trade I (JEB039), however, it can be also studied independently, the International Trade course is not considered to be a prerequisite.
We will attempt to provide up-to-date examples and references whenever possible (e.g. by discussing topical issues such as global imbalances, internationalization of “new currencies” (RMB), functioning of new digital currencies, stability of Eurozone.

angličtina

Poslední úprava: Ing. Vilém Semerák, M.A., Ph.D. (20.02.2024)

This course is taught only in English.
Detailed (and more frequently updated) information on this course are provided on the moodle site of this course.
The course will only be taught in the traditional form (on-site) during the Spring 2023/24. No streaming or recording is planned.

This course covers, with a focus on both theory and empirics, basic topics in international finance (exchange rate economics & international macroeconomics) at undergraduate level. The course does not deal with international business methods (logistics, use of letters of credits etc.), instead it focuses on theory and policy analysis and attempts to provide some insight into questions such as the following ones:
• How closely (and in which ways) are international financial transactions linked to national economies and international trade?
• Why determines exchange rates?
• How do national economic policies influence external equilibrium of an economy?
• What effect have different foreign exchange policies and foreign exchange arrangements have on economic stability and economic growth?
• What causes balance of payments crises/international financial crises?
• When it is optimal for several countries to share one currency?
• How many global currencies do we really need?
The course is a logical complement to the International Trade I (JEB039), however, it can be also studied independently, the International Trade course is not considered to be a prerequisite.
We will attempt to provide up-to-date examples and references whenever possible (e.g. by discussing topical issues such as global imbalances, internationalization of “new currencies” (RMB), functioning of new digital currencies, stability of Eurozone.

Literatura

čeština

Poslední úprava: Ing. Vilém Semerák, M.A., Ph.D. (20.02.2024)

Main textbook:              P. Krugman, M. Obstfeld, M. J. Melitz: International Trade, Theory & Policy. 9^th edition or newer. Addison-Wesley (Pearson), 2012.

Alternative texts:          

                                   M.D. Levi: International Finance, 5^th edition. Routledge, 2009

P. Wang: The Economics of Foreign Exchange and Global Finance. Springer-Verlag Berlin, 2009

                                   T. Pugel.: Int. Economics, 2009, part I & II., pp. 1-378 (available in the IES library)

                                   D. Appleyard, A. Field, S. Cobb: International Economics, McGraw-Hill/Irwin, any recent edition

Other older texts may also be useable for many of the topics, please contact the instructor if you have questions about any of them.

 

Other sources (selected chapters/sections will be used):

IMF's Balance of Payments and International Investment Position Manual. Available online at http://www.imf.org/external/pubs/ft/bop/2007/bopman6.htm

K. Pilbeam: International Finance

Melvil & Norrbin: International Money and Finance

 

Additional texts:

Boileau & Normandin (2012): Do tax cuts generate twin deficits? A multi-country analysis. The Canadian Journal of Economics / Revue canadienne d'Economique, Vol. 45, No.4 (pages 1667-1671)

Brachinger (2006): Euro or “Teuro”?: The Euro-induced Perceived Inflation in Germany

Buti & Turrini (2015): Three waves of convergence. Can Eurozone countries start growing together again? https://voxeu.org/article/types-ez-convergence-nominal-real-and-structural

De Grauwe (1991): Costs and Benefits of a Monetary Union

Falargia et al (2023): Has the euro changeover really caused extra inflation in Croatia?

Ha & Reddell (1998): What do forward interest and exchange rates tell us?

King, Osler, Dagfinn (2011) - Foreign Exchange Market Structure, Players and Evolution

Kremer & Jayachandran (2003): Odious Debt: When Dictators Borrow, Who Repays the Loan? https://www.brookings.edu/articles/odious-debt-when-dictators-borrow-who-repays-the-loan/

McLeay et. al. (2014): Money in the modern economy: an introduction

Masterson (2022): What happens if a country defaults on its debts? https://www.weforum.org/agenda/2022/03/russia-default-debt-crisis/

Mundell (1961): A Theory of Optimum Currency Areas. AER

Obstfeld & Taylor (2017): International Monetary Relations: Taking Finance Seriously

Paulson, Henry J. (2020): The Future of Dollar.

Reinhart & Rogoff (2004): The Modern History of Exchange Rate Arrangements: A Reinterpretation.

Rogoff, K. (1996): The Purchasing Power Parity Puzzle. Journal of Economic Literature, Vol. 34, No. 2 (Jun., 1996), pp. 647-668

Rose (2015): How do currency unions affect trade

Wren-Lewis et al (1998): What are equilibrium real exchange rates?

Yang (2012): Aggregate Savings and External Imbalances in China

Sylabus

čeština

Poslední úprava: Ing. Vilém Semerák, M.A., Ph.D. (16.02.2021)

Course outline:

1. Introduction to international finance. Foreign exchange market: basic features. Sources of data on international transactions, exchanges rates, exchange rate regimes, and financial markets. (February 16th)
2. Balance of payments structure and national income accounting for open economy. International investment position. Foreign debts. (February 23rd)
3. Introduction to exchange rate determination: asset approach. Covered and uncovered interest rate parity. (March 2nd)
4. Money, interest rates and exchange rates. Long run aspects of exchange rate determination. Oveshooting. (March 9th)
5. Prices and exchange rates. Fischer effect. Nominal and real (effective) exchange rates. Exchange rates and competitiveness. Balassa-Samuelson effect. (March 16th)
6. Nominal and real convergence in the EU. (March 23rd)
7. Holiday (March 30th)
8. Exchange rate and macroeconomics in the short run. The AA-DD model: introduction. (April 6th)
9. The AA-DD model: additional details. Application on policy analysis. (April 13th)
10. Fixed exchange rates: macroeconomic implications. Interventions and sterilization. (April 20th)
11. Reserve currencies and international monetary system. The future of the dollar, RMB, and Euro. (April 27th)
12. Policy trilemma. Policy options for reaching internal and external balance. Swan diagram. Monetary integration.  (May 4th)
13. Equilibrium exchange rates: FEER. A brief introduction into the models of balance of payments crises. (May 11th)
14. Make-up class. Forex forecasting: fundamental approaches versus alternatives. A brief overview of technical analysis. (May 18th)