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Module Title LM Foreign Exchange Markets
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 08 11669
Module Lead Mr. Nick Horsewood and Prof. Somnath Sen
Level Masters Level
Credits 20
Semester Semester 1
Restrictions Available to MSc (Int Money & Banking)
Exclusions none
Description The module examines markets for foreign exchange and other foreign financial assets. Some of the topics covered are: the balance of payments, interest rate parity, purchasing power parity, forward markets, empirical analysis of exchange rate determination, international capital flows and their effects, exchange rate policy, currency crises.
Learning Outcomes

On completion of this module the student will be able to:

  • demonstrate comprehensive knowledge and understanding of the theories of exchange rates and their empirical relevance;
  • identify and analyse mechanisms for managing risk in foreign exchange markets;
  • critically evaluate key policy issues to be faced with regard to the exchange rate;
  • critically appraise topical issues in foreign exchange market such as currency crises, the impact of foreign direct and portfolio investment, and the European Monetary Union;
  • analyse data using a standard econometric software package to test theory.
Assessment 11669-01 : Computer exercises : Coursework (30%)
11669-02 : Written exam : Exam (Centrally Timetabled) - Written Unseen (70%)
Assessment Methods & Exceptions 2 hr examination 70%, 3 x problem sets (10% each) Reassessment: 2 hr examination (100%)
Other none
Reading List Copeland L, Exchange Rates & International Finance (3rd edn), 2000
Pilbeam K, International Finance (2nd edn), 1998