International Finance b 留

36054

Ｉ．Ｊ．　ビセット

2.00単位

1年

2023年度後期

In this course we will view the world financial system from the dual perspectives of theory and reality. Starting with how and why currency markets fluctuate, we will build a solid foundation from which to better understand financial crises, central bank policies and new entrants such as crypto currency. From currency markets to equity, fixed income, and derivatives markets, current market movements will be focused on to apply theory to reality.

Upon completion of the course, students will be able to understand macro movements in world financial markets using theories such as simple supply and demand, purchasing power parity, interest rate parity, and global financial flows.
Students will also be able to analyze and present concrete explanations regarding how financial flows and markets affect global trade.

1. Introduction. Why do we need currency? Perspectives from the gold standard to Bretton Woods, the Nixon Shock and current phenomena.
2. Exchange Rates. World trade, supply and demand, and currency manipulation through sovereign wealth funds.
3. Purchasing Power Parity Theory. The Big Mac Index and beyond.
4. Interest Rate Parity Theory. How interest rate parity contrasts with Mrs. Watanabe and the carry trade.
5. USDJPY, EURJPY, and CNYJPY. Examining the factors behind the three key exchange rates for Japan
6. Exchange Rate Policy. The Impossible Trinity, can China really avoid this long-held theory?
7. Trade and Exchange Settlements
8. International Financial Portfolio Flows. Understanding the difference between stocks, bonds, cash, derivatives, and cryptocurrency
9. Investment Banking. What is it? What role does it play for governments and corporations.
10. Global Financial Crisis 1. Mortgage-backed securities (MBS), the U.S. real estate market, and global demand for highly-rated fixed income products.
11. Global Financial Crisis 2. From MBS to CDS, CDOs, CDO-squareds. How moral hazard can help explain 2007-8.
12. Asian Financial Crisis. The importance of a local-currency bond market to the development of fast-rising countries.
13. Japan’s Big Bang. Financial reform in Japan around the turn of the millennium. The collapse of banking giants like LTCB and the problem of a savings glut.
14. Special Topics in Finance. Topic will be chosen related to current events in the world Financial markets?
15. Global financial markets and you: how and why it is important to be financially literate using Japan’s difficulty with financial incentives to expand investment as an example.

Exams not done during regular exam period.

5 papers x 10 points each, 1 presentation x 50 points.

The instructor worked at a global investment bank for 10 years in various capital markets roles.