Global Capital Markets and Currencies

The objective of the elective is to provide an introduction to:

  • functioning of the global capital markets;
  • estimating the value and role of international finance;
  • background and development of foreign exchange markets and their functions;
  • structure and importance of the balance of payments and its relationship to the macro-economy;
  • FX operations and the concepts of risk and uncertainty trade flows, exchange rates and macro-economic stability.

 

This course requires not only understanding of structures and institutions, but also an ability to understand the instruments used in international financial activity. The problem is that the worldview has changed dynamically since 2007 – in terms of global importance and the range of institutions engaged. Additionally we are also seeing wider socio-economic and legal-regulatory limitations imposed on the players – bankers, dealers, asset managers, analysts and others. In a sense, recent events in the financial world have obliged us to realize that we are no longer able to inhabit a secluded, cosy financial world. On completion of this course, you should be in a position to understand the role of global capital and foreign exchange markets within the international financial services system and the appropriate macro-economic relationship.

The main constructs of the course are:

  • Introduction to global financial markets (Evaluating perceptions and views of markets, market participants and market instruments and the effect on the global financial market);
  • Questioning assumptions (returning to the pre 1980 environment or simply making the pre-2007 environment fireproof), looking at the power of governments, regulators and supranational institutions and studying the role of the banks from a macro-economic perspective? Measuring & managing risk in international finance;
  • Regulation and international financial markets;
  • Foreign Exchange markets;
  • The Balance of Payments;
  • International Finance and the new reality.