PhD International Finance

Prerequisite (s)
Undergraduate International Economics: Theory, Undergraduate International Economics: Policy, Master Level Mathematical Economics

Course Aim
This course teaches the theories covering macroeconomic and microeconomic reasons for international capital movements, and their consequences. The course also teaches how these theories can be utilized to analyze current international capital movements.

Course Goals
Teaching the workings of international financial relations and markets
Teaching the theoretical models designed to analyze international Finance
Teaching the reasons behind international capital movements
Teaching how to analyze the effects of international capital movements on countries’ current economic performance and their long run level of economic development

Course Learning Outs and Proficiencies

The main learning output of this course is to acquire knowledge of international financial models and how to employ these models in analyzing current international financial relations.

Required Readings:
-Nelson Mark C., 2001, International Macroeconomics and Finance, Blackwell Publishers Inc., Massachusetts.
Suggested Readings:
-Roy Crum, Eugene F. Brigham, and Joel F. Houstan, 2004, Fundamentals of International Finance, South-Western College Pub., CA.— Halil Seyidoğlu, 2003, Uluslararası Finans, Güzem Can, İstanbul.— İsmail Aydoğuş ve Harun Öztürkler, 2006, Türkiye’de Cari İşlemler Açığı Sorununun Analizi, Gazi Kitabevi, Ankara.— İsmail Aydoğuş ve Harun Öztürkler, 2006, Merkez Bankası Döviz Rezervlerinin Sosyal Maliyeti, Afyon Kocatepe Üniversitesi, İİBF Dergisi, C.VIII ,S.1. http://student.aku.edu.tr/~iibf/pdf/81-08.pdf— Bordo, Michael D., 1993, "The Gold Standard, Bretton Woods and Other Monetary Regimes: A Historical Appraisal" Federal Reserve Bank of St. Louis Review, March/April 1993 Vol. 75, No.2 http://research.stlouisfed.org/publications/review/93/03/Gold_Mar_Apr1993.pdf— Bretton Woods Committee, 2003, "Sovereign Debt Restructuring Mechanism: Way Forward or Unnecessary Detour?" Critical Issues http://www.brettonwoods.org/SDRMcriticalissue.htm— Calvo, Guillermo A. and Enrique G. Mendoza, "Mexico's Balance-of-Payments Crisis: A Chronicle of Death Foretold" International Finance Discussion Papers 1996-545 Board of Governors of the Federal Reserve http://www.federalreserve.gov/pubs/ifdp/1996/545/ifdp545.pdf— Cavallo, Michele and Kate Kisselev and Fabrizio Perri and Nouriel Roubini, 2004, "Exchange Rate Overshooting And The Costs Of Floating", presented in April 2004 at the Federal Reserve Bank of San Francisco conference on Emerging Markets and Macroeconomic Volatility. http://www.frbsf.org/economics/conferences/0406/Perri.pdf— Dornbusch, R., 1976, "Expectations and Exchange-Rate Dynamics," Journal of Political Economy, Vol. 84, December, pp. 1161--1176.— Dueker, Michael J. and Andreas M. Fischer, 2001, "The Mechanics of a Successful Exchange Rate Peg: Lessons for Emerging Markets" Federal Reserve Bank of St. Louis Review, September, pp.47--56. http://research.stlouisfed.org/publications/review/01/09/0109md.pdf— Fieleke, Norman S., 1996, "What Is the Balance of Payments?" Federal Reserve Bank of Boston Special Report No. 3 http://www.bos.frb.org/economic/special/balofpay.pdf— Frankel, Jeffrey A., 1979, “On the Mark: A Theory of Floating Exchange Rates Based on Real Interest Differentials,” American Economic Review 69, Sep. 1979, 610--22.— Frenkel, Jacob, 1976, “A Monetary Approach to the Exchange Rate: Doctrinal Aspects and Empirical Evidence,” Scandinavian Journal of Economics 78 (1), May, 200--224. (Reprinted in: J. Frenkel and H. G. Johnson (1978).)— Grabbe, J. Orlin, 1996, "The Rise And Fall Of Bretton Woods" http://www.orlingrabbe.com/bretton_woods.htm (online version of his Chapter 1, International Financial Markets, 3rd edition, 1996 Prentice-Hall, Inc., a Simon & Schuster Company, Englewood Cliffs, New Jersey. ISBN 0-13-206988-1)— Higgins, Matthew and Thomas Klitgaard and Cédric Tille, "The Income Implications of Rising U.S. International Liabilities", Current Issues in Economics and Finance Volume 11, Number 12, December 2005. http://www.newyorkfed.org/research/current_issues/ci11-12.pdf— International Monetary Fund, 1996, Balance of Payments Textbook (ISBN 1-55775- 570-1)— Kouparitsas, Michael A., "International Business Cycles Under Fixed and Flexible Exchange Rate Regimes" Federal Reserve Bank of Chicago Working Paper WP2003-28. http://www.chicagofed.org/publications/workingpapers/papers/wp2003-28.pdf— Obstfeld, Maurice, 1994, "The Logic of Currency Crises" Cahiers Economiques et Monetaires. http://elsa.berkeley.edu/users/obstfeld/ftp/currency_crises/cc.pdf— Obstfeld, Maurice and Kenneth Rogoff, 1995, "The Mirage of Fixed Exchange Rates", Journal of Economic Perspectives 9, 73--96.
— Pakko, Michael R. and Patricia S. Pollard, 2003, “Burgernomics: A Big Mac™ Guide to Purchasing Power Parity”, Federal Reserve Bank of St. Louis Review 85 (6) pp. 9--27. http://research.stlouisfed.org/publications/review/03/11/pakko.pdf— Quiggin, John, 2004, "The Unsustainability of U.S. Trade Deficits", The Economists' Voice 1(3), Article 2 http://www.bepress.com/ev/vol1/iss3/art2

Assessment Criteria

Midterm 30% and Final 70%

Semester Course Plan


Week/Subjects
1
National Income Account
2
Balance of Payments
3
Central Bank Balance Sheet
4
International Financial Markets I
5
International Financial Markets II
6
Theoretical Models I
7
Theoretical Models II
8
Theoretical Models III
9
Theoretical Models IV
10
International Financial Crises I
11
International Financial Crises II
12
Assessment of working of international financial institutions
13
Turkey’s international finacial problems and their solutions I
14
Turkey’s international finacial problems and their solutions II