DRE 4023 International Finance

DRE 4023 International Finance

Course code: 
DRE 4023
Department: 
Finance
Credits: 
6
Course coordinator: 
Federico Gavazzoni
Course name in Norwegian: 
International Finance
Product category: 
PhD
Portfolio: 
PhD Finance courses
Semester: 
2024 Autumn
Active status: 
Active
Level of study: 
PhD
Teaching language: 
English
Course type: 
One semester
Introduction

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.

Learning outcomes - Knowledge

The students understand the interaction between international finance and macroeconomics.

Learning outcomes - Skills

The students can use standard empirical and theoretical techniques and principles that aim at explaining the long-lasting puzzles in international macro and finance.

General Competence

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

Course content

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

Teaching and learning activities

Lectures, class discussions, presentations, feedback from fellow participants and instructor.

Some exercises may require basic knowledge of software like Matlab or R.

Software tools
Matlab
R
Additional information

Class participation is mandatory.

Qualifications

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
Assessments
Exam category: 
Activity, Oral
Form of assessment: 
Presentation
Exam/hand-in semester: 
First Semester
Weight: 
40
Grouping: 
Individual
Duration: 
1 Semester(s)
Exam code: 
DRE 40232
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Exam category: 
Submission
Form of assessment: 
Submission PDF
Exam/hand-in semester: 
First Semester
Weight: 
60
Grouping: 
Individual
Duration: 
1 Week(s)
Exam code: 
DRE 40233
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
Total weight: 
100
Student workload
ActivityDurationComment
Teaching
30 Hour(s)
Group work / Assignments
30 Hour(s)
Student's own work with learning resources
30 Hour(s)
Sum workload: 
90

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.