ECM136-Advanced International Macroeconomics and Finance

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Dr Alexander Mihailov

Email: a.mihailov@reading.ac.uk

Type of module:

Summary module description:

The module is intended to be the next step beyond what is traditionally taught in an undergraduate intermediate course in international finance or international macroeconomics. It will introduce students to the concepts and techniques that are used in modern analysis of the global economy.


Aims:

The principal aim of the module is to familiarise students with the analytical tools used in the field of international finance and show how these tools can be applied in examining key policy issues. This includes developing an understanding of the theoretical concepts and models as well as of the empirical and policy implications related to core subfields such as: 1) balance of payments and exchange rate theories; 2) new open-economy macroeconomics; 3) foreign exchange market microstructure and official intervention; 4) currency crisis and speculative attack; 5) exchange rate regimes, policy coordination, monetary unions.


Assessable learning outcomes:

Students should be able to comprehend and interpret key results from the most commonly used models of open-economy macroeconomics and international finance. More importantly, they should be able to link major conclusions from these models to relevant real-world financial, macroeconomic, and policy situations, apply their knowledge in empirical projects as well as discuss broader national and global welfare and coordination issues.


Additional outcomes:

Students will be required to complete coursework such as problem sets, empirical projects or quizzes, essays, etc. In the process of completing these types of assignments, they must learn skills required to do relevant research, write reports, understand technical articles, and apply theoretical knowledge to real-world situations and policy issues.


Outline content:

Core general topics include: macroeconomic theories and models of balance of payments adjustment, exchange rate determination and regimes, and monetary policy and financial interactions in an open-economy context. Additional topics may include: flow and stock approaches to balance of payments adjustment and exchange rate determination, the intertemporal approach to the current account, asset market structure and risk-sharing, new open-economy models and their extensions, foreign exchange market microstructure and official intervention, models of currency crisis and speculative attacks, theories of optimal currency areas and monetary integration, and relevant empirical and policy implications.


Brief description of teaching and learning methods:

Detailed guidance on the topics covered will be provided in the 10 x 2 hours weekly lectures, together with comprehensive handouts covering the material discussed, examples, exercises, programming codes, data and solutions to facilitate understanding of key concepts. Students may be required to do exercises corresponding to each topic, to read a significant amount of journal articles, and to undertake research using the library, internet, etc.  Students will also benefit from a one hour revision lecture during the final week of the spring term.


Contact hours:
  Autumn Spring Summer
Lectures 21
Guided independent study: 159 20
       
Total hours by term 180 20
       
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written exam 60
Written assignment including essay 20
Set exercise 20

Summative assessment- Examinations:

One 2-hour unseen written paper, intended to be comprehensive of everything covered in the module. Postgraduate examinations are held in the Summer term.


Summative assessment- Coursework and in-class tests:

Coursework will count for 40% of the overall grade. Coursework will include a number of different methods for assessing student’s knowledge. These may include, but are not limited to: Problem Sets: Short assignments requiring students to provide short answers and numerically solve relevant problems. Essay: A written work intended to allow the student to demonstrate his/her ability to synthesize many of the concepts covered throughout the term. Quizzes: Short tests intended to ascertain students understanding of recent topics discussed in class. The exact requirements of the module for a given term (i.e. number of quizzes, etc.) will be explicitly detailed in the syllabus handed out at the beginning of each term in which the module is offered.


Formative assessment methods:

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:

A minimum weighted average mark of coursework and examination of 50%.


Reassessment arrangements:

Re-examination for all modules takes place in August/September of the same year. Re-assessment is by examination only; coursework is not included at the second attempt.


Additional Costs (specified where applicable):

Last updated: 10 April 2019

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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