F1IP 5120 - Contemporary Issues in International Finance

This course deepens students’ understanding of international macroeconomics and finance beyond the “International Macroeconomics” (F1IP4005) class. It offers an in-depth exploration of contemporary macroeconomic and financial issues shaping the global economy. The course begins with an overview of financial market functioning and asset pricing, equipping students with core concepts needed to understand the role of global capital markets in shaping macroeconomic outcomes.

Core topics include subjects such as the Global Financial Cycle, safe asset demand, the International Monetary System, exchange rate dynamics, dominant currency pricing, or open-economy fiscal policy. We also address current policy challenges such as geoeconomics and digital assets. Emphasis is placed on developing intuition and engaging with recent empirical research and policy debates, rather than technical modeling.

Learning Outcomes

By the end of the course, students will be able to:

• Use their knowledge on financial markets and asset pricing to better understand the underpinnings of the main stylized facts and concepts in international macroeconomics.
• Have a good overview of the main contemporary issues and debates that dominate the international economic policy agenda of international institutions and central banks.
• Engage effectively in policy debates and articulate relevant arguments on international macroeconomic and financial issues.

Professional Skills

The course aims at developing the following professional skills:

• Research and analysis: understanding of contemporary policy issues shaping the global economy.
• Critical thinking: apply acquired economic concepts to formulate policy advise.
• Oral communication: emphasis is put on engaging discussions during the course session in the form of policy debates and presentations.

Students are required to have completed at least one course in macroeconomic and one course in econometrics.

Feedback will be provided in-class (for presentations and discussion sessions). Students are encouraged to drop in during office hours for further feedback and discussion.

(i) Mid-term exam (20% of final grade).

(ii) Final exam (40% of final grade).

(iii) Discussion sessions will take place at the beginning of each topical class. Students are expected to prepare arguments on a designated topic, with the specific objective of developing and presenting policy recommendations. (20% of final grade).

(iv) Group project: Students will prepare a policy note on a topic of their choice. The project will also be presented during class. (20 % of final grade).

• In Class Presence: 2 hours a week / 24 hours a semester
• Reading and Preparation for Class: 4 hours a week / 48 hours a semester
• Research and Preparation for Group Work: 4 hours a week / 24 hours a semester