School of Economics and Finance

ECOM035 - International Finance

Foreign exchange is not only the most heavily traded of all financial assets, it has the clearest interface between macroeconomics and finance. In this module you’ll get an introduction to the main theoretical models used to understand FX markets as well as in-depth analysis of how they work in practice. Topics include: Understanding global imbalances, models of exchange rate determination, the structure of the FX market and how trades are priced, FX derivatives markets, foreign exchange intervention and reserves, and currency regimes and crises. Each week the key lessons of the lecture are illustrated through an analysis of current economic events such as the problems in the Euro-area, China's Foreign Exchange Rate Policy and the role of the Dollar as a global reserve currency. We also price and monitor foreign exchange trades suggested by course participants to see how good you are at FX trading!