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Lecturer(s)
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Gyamfi Solomon, Ing. Ph.D.
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Course content
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International finance, characteristic and basic range of problems. Balance of payments, concept, structure, balance, factors influencing balance of payments, balancing processes. Exchange rate, its systems, determinants, exchange rate in long and short period, management of exchange rates, fundamental and technical analysis of exchange rate. Foreign exchange reserves, its structure and management, exchange intervention of central bank. Exchange market, its structure, foreign exchange operations - term and prompt, foreign exchange expositions and hazards. Model IS-LM-BP (Mundell-Fleming model). Rating. Historical development of international monetary system, Brettonwood institutions, Euro, European Monetary Union.
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Learning activities and teaching methods
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Monologic (reading, lecture, briefing), Dialogic (discussion, interview, brainstorming), Work with text (with textbook, with book), Methods of individual activities
- Preparation of a presentation (report)
- 24 hours per semester
- Preparation for an exam
- 70 hours per semester
- Participation in classes
- 36 hours per semester
- Preparation for a credit (assessment)
- 20 hours per semester
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Learning outcomes
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The aim of the course is to acquaint the students with basic knowledge of international financial relations from the point of view of money theories as well as practical external monetary and fiscal policy.
A student who has successfully completed a subject can: explain the historical context and importance of exchange rates; characterize balance of payments; characterize the exchange market; characterize foreign exchange operations; characterize financial crisis and their economics impacts; explain the historical development of international monetary system. A student who successfully completed the subject will: orientate in the field of international finance; to focus on the offer of international finance; analyze the development of the financial crises; analyze the historical development of monetary system; to interpret the importance of international finance for economic entities. A student who successfully completed the subject is able to: to use their expertise and skills to solve the problems of international finance; comprehensibly and convincingly to experts and laymen information about the kind of professional problems in the field of international finance and their own opinion on their solution.
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Prerequisites
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The student should have knowledge of: - the goods market and the IS curve; the money (asset) market and the LM curve; the IS-LM model - the effectiveness of fiscal policy and monetary policy in the IS-LM model - net exports and equilibrium in the goods and services market in an open economy - the balance of payments, the BP curve - basic problems of exchange rate determination in the long and short run - devaluation (depreciation), current account and income levels - functions and breakdown of capital markets - capital market structure, activities of market operators - indicators for assessing the state and development of the capital market, stock market indices.
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Assessment methods and criteria
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Oral examination, Written examination, Home assignment evaluation, Student performance assessment, Presentation
The assignment is granted upon completion of the following conditions: presentation and discussion of the current situation. The examination is written and oral. It is possible to achieve max. 100 points, while the final test is the max. 85 points, essay and its presentation max. 10 points, discussion and activity in seminars max. 5 points.
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Recommended literature
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Gandolfo, G. International Finance and Open Economy Macroeconomics. Berlin: Springer-Verlag, 2016. ISBN 978-3-662-498620.
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KRUGMAN, P. R., OBSTFELD, M. MELITZ M. J. International Finance Theory and Policy. Harlow: Pearson Education, 2018. ISBN 9781292238739.
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