Module aims: This module is a study of the financial economy and international markets from a macroeconomic perspective. This course provides students with a comprehensive understanding of the workings of the real global economy and its interaction with financial markets. There are three aims for this module:
1. to develop an in-depth understanding of the importance of financial markets in the operation of the global economy and evaluate the relationship between macroeconomic conditions and financial markets of different asset classes
2. to evaluate investment and financing decisions for multinational firms in light of risks associated with foreign exchange and international bond markets;
3. to evaluate strategies for managing risk by companies who trade internationally
Module learning outcomes:
1. Demonstrate a thorough understanding of international financial markets and the connection between financial markets, real saving by households and real investment by firms.
2. Analyse and evaluate the extent to which monetary policy can affect real macroeconomic activity through its interaction with financial markets in an international setting.
3. Critically evaluate the relationship between financial markets, government policy and the wider economy, demonstrating an in-depth understanding of the functions of international stock exchanges and issues associated with foreign direct investment.
4. Critically evaluate the impact of changes in expectations of future inflation and interest rates on macroeconomic policy and financial markets
5. Critically evaluate various types of risks faced by firms and the strategies they use to manage such risks.
6. Evaluate international finance theories in light of empirical evidence and apply them to practical business situations
7. Look at a mixture of economic and finance theory, practitioner’s reports and academic research.