International Finance: Theory and Policy
Spring 2009
Instructor: J.D. Hwang

Course Description: The landscape of international financial system has been changing rapidly in the past few years. This course provides a systematic and rigorous analysis of the core issues in international finance.

Text: Textbook for this course is International Finance: Theory, Policy and Practice by the instructor (黃志典, 2009, 國際金融：理論、政策與應用, 前程文化公司出版). Students are encouraged to read financial sections of Economic Daily News and Commercial Times and participate in the in-class discussions. PDF for this course can be downloaded at http://www.ib.ntu.edu.tw/jdhwang/

Grading: Grade is based on a mid-term and a final exam. Both examinations carry an equal weight. Mid-term exam is scheduled in the first week or second week after the University’s mid-tem examination week. Final exam is scheduled in the University’s final examination week.

Course Outline
1. Foreign Exchange and Exchange Rate: chapter 1
2. Foreign Exchange Market and Foreign Exchange Transaction: chapter 2
3. Balance of Payments: chapter 3
4. Exchange Rate Determination (I): chapter 4
5. Exchange Rate Determination (II): chapter 5
6. Exchange Rate System: chapter 6
7. Balance of Payments Disequilibrium and Adjustments: chapter 7
8. Macroeconomic Policy in an Open Economy: chapter 8
9. The International Monetary System: chapter 9 and handout
10. Eurocurrency Market: chapter 11