1. Home
  2. FB GRADUATE COURSES
  3. EFIC 698: International Finance, Investment and Capital Flow

EFIC 698: International Finance, Investment and Capital Flow Report a Broken Link

This course will introduce the essential topics of international finance and investment. It will familiarise students with an analytical framework within which the key international finance issues, such as exchange rate movements, the volumes of exports and imports, risks associated with exchange rate fluctuations, and international capital flows can be analyzed. The latest and emerging issues related to international financial transactions and investment activities will be discussed to understand the relevance of the topics in the real world context. The course will also provide the necessary foundation for understanding the role of money and monetary policy in the global context.

Required Readings

There are no readings in Lesson 1.

Lesson 1

Reading 1: Lyons, R. K. (1995). Tests of microstructural hypothesis in the foreign exchange market. Journal of Financial Economics, 39(2-3), 321–351.
Reading 2: Evans, M. D. D., & Lyons, R. K. (2002). Order flow and exchange rate dynamics. Journal of Political Economy, 110(1), 170–180.
Reading 3: Berger, D. W., Chaboud, A. P., & Chernenko, S. V. (2008). Order flow and exchange rate dynamics in electronic brokerage system data. Journal of International Economics, 75(1), 93–109.

Lesson 2

Reading 4: Paligorova, T., & Staskow, R. (2014). The use of financial derivatives by Canadian firms. Bank of Canada Review, Autumn 2014, 47–54.
Reading 5: Geczy, C., Minton, B. A., & Schrand C. (1997). Why firms use currency derivatives. The Journal of Finance, 52(4), 1323–1354.
Reading 6: Bartram, S. M., Brown, G. W., & Fehle F. R. (2009). International evidence on financial derivatives usage. Financial Management, 38(1), 185–206.

Lesson 3

Reading 7: Lothian, J. R., & Wu, L. (2011). Uncovered interest-rate parity over the last two centuries. Journal of International Money and Finance, 30(3), 448–473.

Lesson 4

Reading 8: Alba, J. D., & Papell, D. H. (2007). Purchasing power parity and country characteristics: Evidence from panel data tests. Journal of Development Economics, 83(1), 240–251.
Reading 9: Rush, M., & Husted, S. (1985). Purchasing power parity in the long run. Canadian Journal of Economics, 18(1), 137–145.
Reading 10: Taylor, M. P. (2003). Purchasing power parity. Review of International Economics, 11(3), 436–452.

Lesson 5

Reading 11: Amat, C., Michalski, T., & Stoltz, G. (2018). Fundamentals and exchange rate forecastability with simple machine learning methods. Journal of International Money and Finance, 88, 1–24.
Reading 12: Evans, M. D. D., & Lyons, R. K. (2005). Meese-Rogoff redux: Micro-based exchange-rate forecasting.  American Economic Review, 95(2), 405–414.
Reading 13: Faust, J., & Rogers, J. H. (2003). Exchange rate forecasting: The errors we’ve really made. Journal of International Economics, 60(1), 35–59.
Reading 14: Rime, D., Sarno, L., & Sojli, E. (2010). Exchange rate forecasting, order flow and macroeconomic information. Journal of International Economics, 80(1), 72–88.
Reading 15: Verdelhan, A. (2010). A habit-based explanation of the exchange rate risk premium. Journal of Finance, 65(1), 123–146.
Reading 16: Zorzi, M. C., & Rubaszek, M. (2020). Exchange rate forecasting on a napkin. Journal of International Money and Finance, 104(June), Article 102168.

Lesson 6

Reading 17: Kusnadi, Y., & Wei, J. K. C. (2011). The determinants of corporate cash management policies: Evidence from around the world. Journal of Corporate Finance, 17, 725–740.

Lesson 7

Reading 18: Li, S., de Haan, J., & Scholtens, B. (2018). Surges in international funds flows. Journal of International Money and Finance, 82, 97–119.  

Lesson 8

Reading 19: Essers, D., & Ide, S. (2019). The IMF and precautionary lending: An empirical evaluation of selectivity and effectiveness of the flexible credit line. Journal of International Money and Finance, 92(April), 25–61.
Reading 20: Stulz, R. M. (2010). Credit default swaps and the credit crisis. Journal of Economic Perspectives, 24(1), 73–92.