This Economics course is a post principles course examining international finance theory and policy. This course will examine a variety of finance issues including the international financial system, balance of payments, the foreign exchange rate market, exchange rate determination, fixed and flexible exchange rate regimes, and the impact of international financial crisis.
1. National Income Accounting and the Balance of Payments
- National Income and Product
- National Income Accounting for an Open Economy
- Balance of Payments Accounts
- Creditor and Debtor Nations
2. Exchange Rates and Foreign Exchange Market
- Exchange Rate Characteristics
- Interest and Purchasing Power Parity
- Interest Rates, Expectations, and Equilibrium
- Money, Interest Rates and Exchange Rates
- Flexible and Fixed Exchange Rates
- Changes in Fiscal and Monetary Policy
3. International Monetary Systems
- Evolution from Gold Standard, Breton Woods, to the Current System
- Financial Globalization
4. Performance of the Global Capital Market
- Currency Areas and the Euro
- Global Capital Flows
- International Financial Crisis
Methods of Instruction
Lecture and Seminar
Means of Assessment
Term tests 25% - 50%
Assignments 10% - 30%
Essay or Research Paper 0% - 30%
Participation 0% - 10%
Final Examination 30% - 40 %
(No individual test or assignment can exceed 40%.)
At the end of the course, the successful student should be able to:
1. Critique, and demonstrate an understanding of, the theories of international finance to explain balance of payments and exchange rate determination.
2. Examine and evaluate the role of monetary and fiscal policy on balance of payments and exchange rates.
3. Evaluate the implications of the international monetary system on national incomes and trade flow.
4. Analyze and critique current issues affecting the performance of the global capital markets.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.