سیلابس درس مالیه بینالملل
Faculty of
International Finace
Fall 2008
Dr. Alireza Rahimi Boroujerdi
13:30 Sat - Mon
Office Hours: 8-10, Sat,Sun,Mon,Tue,Wed or by Appointments,
This course concerns the issues of International Finance which is a branch of International Economics, for undergraduate level. Knowledge of microeconomics and macroeconomics at intermediate level are prerequisites. Topics covered to provide an understanding of the operation of exchange rates and foreign exchange markets related to the determining exchange rates. It deals with different types of exchange rate regimes, the transmission of disturbances, the balance of payments and its accounts, the macro effects of autonomous and policy-induced adjustments in the balance of payments and the effects of large scale capital flows, and indebtedness, on sustainable exchange rates. Also, the most important monetary institutions which mostly were created within Breton Woods Conference will be discussed in this course.
I will calculate the semester grade by weighting each two hours examination 30%, the final examination 30%, and class presentation 10%. Additionally, I will raise your semester numerical score if you make an excellent contribution to class.
Class Presentation:
Each student will be expected to make a class presentation once during the semester on one of the International Finance topics. You can determine the approximate timing of the presentation by seeing where that topic fits into the schedule of required reading assignments.
Required Texts:
RahimiBoroujerdi, Alireza, International Economics: International Finace , Basirat Publication, 2001.
Hallwood Paul, C. and MacDonald, Ronald, International Money and Finance,
Argy, Victor, International Macroeconomics,
Copeland, L. Exchange Rate and International Finance, Wokingham: Addison Wesley
Corden, W.M. Inflation, Exchange Rates and the World Economy,
Levi, M. International Finance,
Argy, Victor, The Postwar International Money Crisis,
Appleyard, D. and Field, A., International Economics, Richard D. Irwin, Inc.
Salvatore, D., International Economics,
Krugman, P.R. and Obstfeld, M., International Economics,
Lindert, Peter, H., International Economics, Irwin.
Edwards, Sebastian, Real Exchange Rate, Devaluation, and Adjustment, The MIT Press.
Krueger, Anne O., Exchange Rate Determination,
Required Reading Assignments:
1-Exchange Rate and Foreign Exchange Market
A- Exchange Rate: Definition of Exchange Rate, Arbitrage, Supply and Demand for Foreign Exchange: The Relation Between Demand for Foreign Exchange and Supply of Domestic Currency, Weakness and Strength of a Currency, The Shift of the Curves of Supply and Demand for Foreign Exchange because of Real Income, Inflation Rate, Interest Rate, Money Supply, Expectations, … B- Foreign Exchange Market: The Basic Function of Foreign Exchange Market, Covered Interest Arbitrage, Uncovered Interest Arbitrage, Forward Exchange Rate, Forward Exchange Market, Hedging, Swap, Speculation and, The Euro-Currency Market. These topics are all covered in RahimiBoroujerdi, Chapters, 1 and 2. and Hallwood Chapters, 3, 4 and 5.
Examination
2-International Monetary System and Breton Woods Conference
A- International Monetary System: The Fluctuations of Exchange Rate, Fixed Exchange Rate Regime: The Shifts of Supply and Demand Under Fixed Exchange Rate, Arguments and Advantageous of Fixed Exchange Rate Regime, Gold Standard System, Gold Points, The Collapse of Gold Standard System, International Monetary System Between 1914-1944: Fluctuating Exchange Rates, Currency Stabilization, Tripartite Agreement. B- Breton Woods Conference: World Bank Group: 1) International Bank for Reconstruction and Development (IBRD), 2) International Finance Corporation (IFC), 3) International Development Association (IDA), 4) International Center for Settlement of Investment Disputes (ICSID) and 5) Multilateral Investment Guarantee Agency (MIGA), Aims, Basic Functions and Iran's Relations with World Bank Groups, International Monetary Fund (IMF): Aims, Basic Functions, The Effects of IMF on some selected Countries, Technical Facilities of IMF to the Members, Types of IMF's Financial Facilities, Special Drawing Rights (SDR), Iran's Relations with IMF, Breton Woods Monetary System, Gold Exchange Standard and, The Reasons for Collapse of Breton Woods Monetary System. These topics are all covered in RahimiBoroujerdi, Chapters, 3 and 4.
Examination
3-Combinations of Exchange Rate Regimes and Balance of Payments
A- Types of Exchange Rate Regimes: Managed Floating Exchange Rate Regime, Freely Floating Exchange Rate Regime, The Effects of Monetary and Fiscal Policies on Floating and Fixed Exchange Rate Systems, The Advantageous of Floating System, The case for Fixed Exchange Rate Regime, The Case for Floating Exchange Rate Regime, Optimum Currency Area, European Monetary System, Managed Fixed Exchange Rate Regime, Adjustable Peg Exchange Rate System, Crawling Peg Exchange Rate System. B- Balance Of Payments: The Market Balance and its Equilibrium Status, Stabilized and destabilized Exchange Market, Marshal-Lerner Condition, The Program Balance, The Accounting Balance of Payments: The Current Account BOP, The Capital Account BOP: International Capital Movement, The Official Reserve Account BOP, Adjustment in the Balance of Payments: Exchange Rate Adjustment Mechanism, Price Adjustment Mechanism, Interest Rate Adjustment Mechanism, The Income Adjustment Mechanism, Adjustment Under Expenditure-Changing and Expenditure-Switching Policies and, Synthesis of Adjustment under the Gold-Exchange Standard. These topics are all covered in RahimiBoroujerdi, Chapters, 5 and 6. and Argy, Chapters, 4,6 and 7.
Examination
