A78619 International financial markets

At the end of the course 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 payment crisis;

d)     Critically read economic reports released by investment banks;

e)      Develop the ability to detect major trends currently developing in financial markets.

This course aims develop the student’s ability to familiarize with the structure and processes of 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 may originate a currency and financial crisis. The third part is aimed to familiarize the students with the major categories of financial instruments.

In your own interest and of your colleagues, please strictly observe the following courtesy rules:

1)      Arrive in class on time; do not leave early without prior explicit instructor’s approval


2)      Keep your mobiles and laptops off; do not chat with your classmates


3)      Do not wandering in and out of the classroom

4)     Hand in assignments (if any) on time. No late submissions are allowed.

Brealey, R. A., Myers, S. C., & Allen, F. (2006). Principles of corporate finance. New York, NY, McGraw-Hill/Irwin.

Mishkin, F. S. and Eakins, S. (2015). Financial Markets and Institutions. 8/E, Pearson. (available also in Italian: Mishkin, F. S., Eakins, S. and Forestieri G. (2015). Istituzioni e Mercati Finanziari, 8/E, Pearson.)

Charles P. Kindleberger, A Financial History of Western Europe (London: Routledge 2007). Chapters: 1 (19-34); 4 (55-70); 15-16 (269-309); 18 (329-346); 20-21 (346-400); 23-24 (424-464).

Students regularly attending* the course.

The students’ assessment for the course comprises a research paper (50%) and home assignments (25%), on a group basis, and a written test (25%), 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.

Students not attending the course.

Students who failed the previous assessment, non attending the course, sitting 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 student means a student attending at least to 75% of the classes.