DRE 4023 International Finance
DRE 4023 International Finance
All countries in the world, and small open economies like Norway in particular, must understand the basics of international finance. The goal of this course is to provide both solid foundations about the topic and selected exposure to relevant current research. The course will have a strong emphasis on the interaction between international finance and macroeconomics. Students are expected to openly discuss and provide comments on recently published papers and ongoing working papers.
The students understand the interaction between international finance and macroeconomics.
The students can use standard empirical and theoretical techniques and principles that aim at explaining the long-lasting puzzles in international macro and finance.
The students understand the following concepts: forward premium anomaly, currency carry trade, completeness vs. incompleteness, international integration vs. segmentation, international risk sharing in general equilibrium
The course is a mix of fundamental concepts and puzzles in international finance and current active research areas. The emphasis will be on the work providing a bridge between macroeconomics and finance. Classes will be a mixture of lectures and students’ presentations. The course is roughly divided in four parts:
- The Forward Premium Anomaly and the Currency Carry Trade
- Completeness vs. Incompleteness, and Integration vs. Segmentation
- General Equilibrium and International Risk Sharing
- Ad hoc topics: Capital Flows, Global Imbalances, Information Asymmetry, Portfolio Allocation, Financial Integration
Two excellent reviews of long-lasting puzzles in international macro and finance are:
From a macro perspective:
Maurice Obstfeld, Kenneth Rogoff, “The Six Major Puzzles in International
Macroeconomics: Is There a Common Cause?” NBER Macroeconomics Annual 2000, Volume 15
From a finance perspective:
Lewis Karen, “Puzzles in international financial markets”, 1995, Handbook of International Economics
Lectures, class discussions, presentations, feedback from fellow participants and instructor.
Some exercises may require basic knowledge of software like Matlab or R.
Class participation is mandatory.
Enrollment in a PhD Programme is a general requirement for participation in PhD courses at BI Norwegian Business School.
External candidates are kindly asked to attach confirmation of enrollment in a PhD programme when signing up for a course. Other candidates may be allowed to sit in on courses by approval of the courseleader. Sitting in on a course does not permit registration for the course, handing in exams or gaining credits for the course. Course certificates or confirmation letters will not be issued for sitting in on courses.
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
| Assessments |
|---|
Exam category: Activity Form of assessment: Class participation Weight: 20 Grouping: Individual Duration: 1 Semester(s) Exam code: DRE 40231 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Activity Form of assessment: Presentation Weight: 30 Grouping: Individual Duration: 1 Semester(s) Exam code: DRE 40231 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 50 Grouping: Individual Duration: 1 Week(s) Exam code: DRE 40231 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 30 Hour(s) | |
Group work / Assignments | 30 Hour(s) | |
Student's own work with learning resources | 30 Hour(s) |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.