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Graduate Education Institute · International Finance and Participation Banking · Master

ECTS: 7.5 T+P+L: 3+0+0 Departmental Elective
Coordinator: Prof. Dr. Turan EROL

Course Objective

The course aims at equipping the students with the latest developments of theory and parctices of international finance

Course Content

This course covers a variety of topics in international finance and open-economy macroeconomics, including: the foreign exchange market, exchange rate determination, Purchasing Power Parity, output and exchange rate determination under fixed and flexible exchange rates, speculative attacks and the causes and consequences of international financial crises. The course will also discuss various recent policy debates. We will discuss the role of global imbalances in the recent financial crisis, and several recent proposals to reform the international financial system.

Course Learning Outcomes

  1. At the end of this course, the student will,1. Absorb the evolution of international finance.
  2. At the end of this course, the student will,2. Have knowledge about current international finance.
  3. At the end of this course, the student will,3. Be able to compare the theory and practices of internaitonal finance.
  4. To achive the talents to make theoretical and practical assessments in international finance

Core Area Distribution

(34) Business and Administration%100

Teaching Methods

ExpressionQuestion-AnswerDiscussionExercise and PracticeGroup StudyCase Study

Assessment & Evaluation

HomeworkPerformance Assignment ( Lab / Workshop / Field Work / Seminar / Presentation / Completion Study / ThesisTesting (Essay / Tests: True-Falls, multiple-choice, short answer, matching)

ECTS / Workload

ActivityQuantityDuration (h)Total Workload
Course Duration (Including Exam Week)16348
Out of Class Study Period16580
Midterm122
Quiz000
Assignment11515
Practice000
Final122

Course Schedule

WeekSubjectPreparation
1IntroductionChapter 1
2World Trade: An OverviewChapter 2
3National Income Accounting & the Balance of PaymentsChapter 13 “Birth Pains”, “China, New Financial Superpower”, “The Trilemma of International Finance”
4Exchange Rates and the Foreign Exchange Market: An Asset ApproachChapter 14
5Para, Faiz Oranları ve Döviz KurlarıChapter 15
6Price Levels and the Exchange Rate in the Long RunChapter 16 “Burger-Thy-Neighbor Policies”, “Understanding Trends in Foreign Exchange Rates”
7Output and the Exchange Rate in the Short RunChapter 17
8Midterm ExamChapters 1, 2, 13-17
9Fixed Exchange Rates and Foreign Exchange InterventionChapter 18
10International Monetary Systems: An Historical OverviewChapter 19
11Chapter 20: Financial Globalization: Opportunity and CrisisChapter 20 Mundell, “A Reconsideration of the Twentieth Century”
12Optimum Currency Areas and the EuroChapter 21 “A Theory of Optimum Currency Areas” “Crash of the Bumblebee” “The Global Fallout of a Eurozone Collapse”
13Developing Countries: Growth, Crisis, and ReformChapter 22
14Term Project PresentationsReports
15Term Project PresentationsReports
16Final ExamChapters 1, 2, 13-22