Lahore University of Management Sciences

ECON 352 International Finance Spring 2012-2013

Instructor Room No. Office Hours Email Telephone Secretary/TA TA Office Hours Course URL (if any)

Syed Muhammad Hussain TBA Fridays 11:00 1:00 Muhammad.hussain@lums.edu.pk

Course Basics Credit Hours Lecture(s) Recitation/Lab (per week) Tutorial (per week) Course Distribution Core Elective Open for Student Category Close for Student Category COURSE DESCRIPTION

4 Nbr of Lec(s) Per Week Nbr of Lec(s) Per Week Nbr of Lec(s) Per Week

Duration Duration Duration

110 minutes

Elective

The main objective of this course is to provide you with a clear understanding of the foundations of international finance by using a blend of theoretical concepts and real world applications such as balance of payments problems and policies and the causes of exchange rate movements. In addition, we will also examine some current policyrelated issues that have taken center stage in international media. For example, Which exchange rate regime is better: fixed or flexible? What are the benefits and costs of forming a monetary union? Why have there been exchange-rate crises in Asia, Russia and South America in late 1990s? How can the international monetary system be reformed and improved? By the end of the course you should be able to understand basic analysis of open economy models, apply this analysis to address key policy issues and take interest in the debates that makes this area so exciting and fascinating.
Grading Breakup and Policy Assignment(s): Home Work: Quiz(s): 30% Class Participation: Attendance: Midterm Examination: 30% Project: Final Examination:40%

Examination Detail Yes/No: Yes Combine Separate: Duration: 2.5 hours Preferred Date: Exam Specifications:

Midterm Exam

Lahore University of Management Sciences

Final Exam

Yes/No: Yes Combine Separate: Duration: 2.5 hours Exam Specifications:

COURSE OVERVIEW Week/ Lecture/ Module

Topics

Recommended Readings Chapters 1-8

Objectives/ Application

Introduction to basic concepts in International Finance

Chapters 9-10

Determinants of the Balance of Payments and Exchange rates Some Macroeconomics Macroeconomic Policy in the open economy Three generations of currency crisis models.

Krugman and Obstfeld (Chapter 1416) Chapter 14

Class Notes

Textbook(s)/Supplementary Readings

International Money and Finance, 7th edition, Michael Melvin. (required) International Economics: Theory and Policy, 6th edition, Krugman and Obstfeld.