International Capital Movements: Theory and Econometric Evidence

Module: International Capital Movements: Theory and Econometric Evidence (6 Credits)
Name in diploma supplement	International Capital Movements: Theory and Econometric Evidence
Responsible	Prof. Dr. Volker Clausen
Admission criteria	See exam regulations.
Workload	180 hours of student workload, in detail: Attendance: 45 hours Preparation, follow up: 90 hours Exam preparation: 45 hours
Duration	The module takes 1 semester(s).
Qualification Targets	Students understand the conceptual basics of international capital movements are able to present current models of international capital movements formally, graphically, and are also able to interpret them verbally are able to analyze the models critically are in a position to transfer the obtained knowledge and skills to other subjects are able to verify the models empirically are in a position to interpret estimation results and analyze them critically have learned how to implement empirical studies independently. Due to the close link between theory and practice in the tutorial class, students are also well-prepared to meet a wide range of requirements of professional practice can evaluate scientific studies accurately and are in a position to identify starting points for their own empirical research are proficient in the econometric methods necessary to evaluate relevant economic models and are able to apply these methods independently as well as to identify their weaknesses
Relevance	The acquired skills and knowledge can be utilized in international companies (in particular banks and other financial institutions), international organizations, economic research institutions and ministries. The ability to analyze international economic relations theoretically and empirically according to scientific standards is a prerequisite for understanding recent economic studies. It is therefore the base for scientific research and practice in this area of expertise.
Module Exam	The module-related examination is performed by a written test (usually 60-90 minutes). Die Prüfung in diesem Modul darf nicht abgelegt werden, wenn Theorie und Empirie internationaler Kapitalallokationen bereits bestanden ist.
Usage in different degree programs	BWL EaF Master > Wahlpflichtbereich > 1.-3. Sem, Elective ECMX Master > Wahlpflichtbereich > ME5 Economics > 1.-3. Sem, Elective LA gbF/kbF BK Master > Masterprüfung in der kleinen beruflichen Fachrichtung > Finanz- und Rechnungswesen, Steuern > Wahlpflichtbereich Kleine berufliche Fachrichtung "Finanz- und Rechnungswesen, Steuern" > 1.-3. Sem, Elective Mathe Master > Anwendungsfach "Wirtschaftswissenschaften" > Schwerpunkt "VWL-M II" > 1.-4. Sem, Elective MuU Master > Wahlpflichtbereich II > Wahlpflichtbereich II B.: Märkte und Unternehmen aus Marktperspektive > 1.-3. Sem, Elective VWL Master > Wahlpflichtbereich I > 1.-3. Sem, Elective WiMathe Master > VWL-M II > 1.-4. Sem, Elective
Elements	Lecture International Capital Movements: Theory and Econometric Evidence (3 Credits) Exercise International Capital Movements: Theory and Econometric Evidence (3 Credits)
Module: International Capital Movements: Theory and Econometric Evidence (WIWI‑M0662)

Lecture: International Capital Movements: Theory and Econometric Evidence (3 Credits)
Name in diploma supplement	International Capital Movements: Theory and Econometric Evidence
Organisational Unit	Lehrstuhl für VWL, insb. Internationale Wirtschaftsbeziehungen
Lecturers	Prof. Dr. Volker Clausen
Hours per week	2	Language	English
Cycle	summer semester	Participants at most	16
Preliminary knowledge Advanced knowledge in macroeconomics of open economies, in the field of money and currencies as well as basic knowledge in econometrics.
Abstract The course provides advanced knowledge of new theoretical and empirical research in the field of international capital movements. This includes the analysis of the determinants of international capital movements, the analysis of the determining reasons of exchange rate movements as well as the analysis of the functionality of international financial markets. Furthermore, various explanatory approaches for international currency and financial crises are going to be presented and assessed.
Qualification Targets Students understand the conceptual basics of international capital movements are able to present current models of international capital movements formally, graphically, and are also able to interpret them verbally are in a position to transfer the obtained knowledge and skills to other subjects
Contents Structure and development of international capital movements Causes of international capital movements Techniques to measure the integration of international financial markets Stylised facts of exchange rate developments Purchasing power parity theory Monetary approaches to the exchange rate Portfolio theory The microstructural approach to exchange rate analysis The effects of foreign exchange interventions Forecasting quality of alternative models Causes of currency and financial crises
Literature Harms, Internationale Makroökonomik; Mark, International Macroeconomics and Finance, Theory and Econometric Methods; Obstfeld and Taylor, Global Capital Markets; Sarno and Taylor, The Economics of Exchange Rates; Selected scientific publications
Teaching concept The course is held in the form of lectures.
Lecture: International Capital Movements: Theory and Econometric Evidence (WIWI‑C0808)

Exercise: International Capital Movements: Theory and Econometric Evidence (3 Credits)
Name in diploma supplement	International Capital Movements: Theory and Econometric Evidence
Organisational Unit	Lehrstuhl für VWL, insb. Internationale Wirtschaftsbeziehungen
Lecturers	Prof. Dr. Volker Clausen
Hours per week	2	Language	English
Cycle	summer semester	Participants at most	16
Preliminary knowledge See lecture.
Abstract The tutorial class provides students with practical knowledge about the econometric analysis of the determinants of international capital movements, of the determinants describing exchange rate movements, and of the functionality of international financial markets.
Qualification Targets Students are able to verify the models empirically are in a position to interpret estimation results and analyze them critically have learned how to implement empirical studies independently. Due to the close link between theory and practice in the tutorial class, students are also well-prepared to meet a wide range of requirements of professional practice can evaluate scientific studies accurately and are in a position to identify starting points for their own empirical research are proficient in the econometric methods necessary to evaluate relevant economic models and are able to apply these methods independently as well as to identify their weaknesses
Contents See lecture.
Literature See lecture.
Teaching concept The lectures are complemented by a practical, computer-based tutorial class that makes frequent use of econometric software, in particular Econometric Views (EViews). Thereby, various techniques of econometric analysis are employed. By utilizing the original datasets taken from scientific literature and from studies conducted by the German central bank, empirical results are replicated and subjected to a sensitivity analysis with respect to their content and methodology. Besides imparting fundamental theoretical and empirical knowledge, the main goal of the course is to introduce students to conducting their own scientific research in the field of international capital movements. Finally, students are taught how to work with scientific analysis software.
Exercise: International Capital Movements: Theory and Econometric Evidence (WIWI‑C0809)