International Financial Economics
MODULE CODE
CREDIT VALUE
Module Aims
Aim 1
EC3406 is concerned with certain key aspects of international financial economics. Fundamental assumptions and structures are introduced at the conceptual level giving students theoretical models around which coherent and consistent arguments can be based. These crucial theoretical constructs will revolve around microeconomic models and macroeconomic models.
Module Content
Demand/Supply models are developed as a tool for analysing exchange rate movements. More complex models – eg UIP – are introduced as a description of exchange rate movements. Exchange rates are further analysed in a wider sense – eg within more complete/complex macro-economic modelling environments. The module also discusses the limits of neo-classical theory in the real world.
Learning Outcomes
On successful completion of this module, a student will be able to:
Teaching Methods
The lecture programme will present the key conceptual ideas and modelling constructs. Understanding of such issues and subsequent competence in economic analysis will be developed continually at the individual level through seminar exercises.
A range of teaching methods will be used as appropriate to the topic being taught. Handouts, additional information/articles, model templates and web links will be available on Blackboard.
Discussion will be encouraged at all stages.
There are two strands assessment in this module:
1. An essay supports assessment for learning by asking students a question for which they will require additional knowledge outwith the main lecture content, allowing them freedom to research a broader understanding of international financial economics and, in particular, exchange rates.
2. The examination measures the student’s ability to build micro and macro-economic financial models and to critically analyse them in the compulsory section of the paper. From the optional questions, students choose a topic that allows them to use relevant literature and knowledge.
Assessment Methods
This module is assessed through an essay and an examination.
View The Other Course’s Modules
Compulsory
Optional
