A78619 International financial markets

At the end of the course the student will be able to:

a. assess the sustainability of the financial condition of a country in a global economy;

b. make educated forecast on the dynamics of the exchange rates;

c. detect the risk of a balance of payment crisis;

d. critically read economic reports released by investment banks;

e. develop ability to detect major trends currently developing in the world financial arena.

f.  recognize some relevant topics in historical examples, underlying elements of continuity and discontinuity.

This course aims develop the students' ability to familiarize with the structure and processes of the international monetary and financial system providing them a proper historical perspective, relevant economic principles and essential operational details. Students would also be stimulated to apply the theoretical body of knowledge acquired to some of the most relevant issues currently affecting the global financial system.  

The course consists of three parts. The first part is a short recap of the history of the international monetary and financial system needed to appreciate the "how and why" of the current structure: it will present the problem of monetary exchange (both on a domestic and international context) in different periods of the history. The second part, the core of the course, offers an updated framework of the rapidly changing international financial markets with the specific purpose of understanding what drives exchnage rate, what may originate a country currency and financial crisis,as well as what are the strategic and management approaches of banks and other financial intermediaries operating in the arena of international finance. The third part is aimed to familiarize the students with some more practical issues of great relevance in today world and to assit them in deriving their own educated views on future trends.   

The course is based on a mix of lectures, presentations of documents (readings, videos, pictures) and group activities (simulations, analysis of material). Student are required to take active part in their learning, participating in classroom debates and making their own presentations.

Students regularly attending* the courses
The students’ assessment for the course comprises a research paper, on a group basis, and a written test, on an individual basis. The aim is to test both the team working capabilities and the individual skills. The research paper will have to be presented to the classroom and the quality of the presentation will contribute to the final grade.
The course is organized in three parts. The first part (25%) introduces the financial markets’ working on an historical perspective. The second part (50%) explains the macroeconomics relevance of financial markets with respect to credit markets, public debt and external balances. The final part of the course (25%) analyses the role of financial intermediaries.
Student assessment will take place at the end of the course. For the first and the third parts of the course (7 points + 7 points on the final grade) the assessment will take place in a written form, also through a multiple-choice test. The second part of the course (16 points on the final grade) will be assessed through a series of testing incidents during lectures (assignment, class participations, presentations, group activities) as well as a research paper due by the end of the course, on the same day of the written assignment.

Students not attending the course
Students who failed the previous assessments, not attending the course, sitting for the exam after the summer break or not fully satisfied with their grading system are offered the opportunity to take a cumulative written exam, during ordinary exam sections.

* Attending studend means a student attending at least to 75% of the classes (13 classes on 17)