Dr Chiara Banti

This course is available on the CEMS Exchange, IMEX Exchange, MSc in Accounting and Finance, MSc in Finance (full-time), MSc in Finance (part-time), MSc in Finance and Economics, MSc in Finance and Economics (Research), MSc in Finance and Private Equity, MSc in Financial Mathematics, MSc in Risk and Finance and MiM Exchange. This course is available with permission as an outside option to students on other programmes where regulations permit.

(Permission required from the course leader).  Interested graduate students enrolled in any programme not listed above must email the course leader to ask for permission. The email must include the list of finance and economics courses taken  during their previous studies and the motivation for wanting to take the course. Only once this specific information is received by the course leader, the course request on Lse For You will be considered.

This course examines key issues in international finance, focusing on recent developments and incorporating theoretical, empirical, policy and institutional dimensions. The course uses exchange rates as a unifying theme and considers them from four perspectives: theory, policy, global risk and international investors. The course examines models of exchange rate determination and related empirical evidence. It analyses the choice and coordination of exchange rate regimes, including the European Monetary Union. It examines exchange rates as one of the sources of global financial instability. It considers the risk exposure for investors arising from exchange rate volatility and its hedging with currency instruments. The course also explores the links, in each area, to current developments such as the internationalisation of the Chinese Renminbi, the EMU sovereign debt crisis, the recent financial crisis and global imbalances, forex carry trades and the high volatility of short term exchange rates.

20 hours of lectures and 10 hours of seminars in the LT.

Students are required to undertake a group research project on a given topic in international finance.

A selection of journal articles; background reading from a textbook such as Keith Pilbeam International Finance (Palgrave, 2013, 4th edition)

Exam (100%, duration: 2 hours) in the main exam period.