MBA 6651: International Finance

Objectives

1. Examine the concept of the current account balance.
2. Employ the current account balance to extend national income accounting to open economies.
3. Apply national income accounting to the interaction of saving, investment, and net exports.
4. Evaluate and discuss the national money markets in which interest rates are determined.
5. Compare how monetary policy and interest rates feed into the foreign exchange market.
6. Discuss the concept of the real exchange rate.
7. Analyze the factors that affect real exchange rates and relative currency prices in the long run.
8. Explain the role of the real exchange rate in determining the aggregate demand for a country’s output.
9. Demonstrate causes and effects of balance of payments crises.
10. Evaluate how alternative multilateral systems for pegging exchange rates work.
11. Explain how the goals of internal and external balance motivate economic policy makers in open economies.
12. Summarize how the monetary and fiscal policies of a large country such as the United States are transmitted abroad.
13. Analyze the economic function of international portfolio diversification.
14. Explain factors leading to the explosive recent growth of international financial markets.
15. Analyze problems in the regulation and supervision of international banks and nonbank financial institutions.

PreRequisites

1. MBA 6081

Textbook(s)