Lecture

International Capital Movements: Theory and Econometric Evidence

Name in diploma supplement

International Capital Movements: Theory and Econometric Evidence

Organisational Unit

Lehrstuhl für VWL, insb. Internationale Wirtschaftsbeziehungen

Lecturers

Prof. Dr. Volker Clausen

SPW

2

Language

English

Cycle

summer semester

Participants at most

no limit

Participants

• BWL EaF MasterWahlpflichtbereich 1.-3. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence
• ECMX MasterWahlpflichtbereichME5 Economics 1.-3. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence
• LA gbF/kbF BK MasterMasterprüfung in der kleinen beruflichen FachrichtungFinanz- und Rechnungswesen, SteuernWahlpflichtbereich Kleine berufliche Fachrichtung "Finanz- und Rechnungswesen, Steuern" 1.-3. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence
• Mathe MasterAnwendungsfach "Wirtschaftswissenschaften"Schwerpunkt "VWL-M II" 1.-4. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence
• MuU MasterWahlpflichtbereich IIWahlpflichtbereich II B.: Märkte und Unternehmen aus Marktperspektive 1.-3. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence
• VWL MasterWahlpflichtbereich I 1.-3. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence
• WiMathe MasterVWL-M II 1.-4. Sem, Elective, Module International Capital Movements: Theory and Econometric Evidence

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.