This course develops the principles of international finance to gain an
understanding of exchange rate dynamics and recent events in both developed
and emerging economies. But, the dynamics of foreign exchange markets are
not the only distinguishing feature of international financial markets.
Institutions differ, and opportunities for portfolio and risk
diversification are greater. Topics treated include: foreign exchange
microstructure; the determination of nominal exchange rates; pricing of and
trading in the spot and the forward foreign exchange; foreign-exchange
options and currency swaps; theory and practice of the Euromarket funding
and lending; sovereign debt crises; speculative attacks and liquidity
crises; globalization.
