Course Syllabus Course code ECON130003.04 Compiled date 209/4/30 Course title Chin 国际金融 Course title International Finance English) Credits Total hours 3(16 weeks) Instructor Shen guobing Department/ School of economics Classroom Forthcoming The first semester Semester Contact email guobingshen@sina.com Wednesday 6-8 Prerequisite Macroeconomics. Microeconomics courses (A)Classification of the course e口 Fundamental□ Compulsory Elective Other口 (B)Course objectives and contents This course is aimed to enable our students to grasp the basic knowledge and general principle of international finance, and apply core economic theory and quantitative methods to analyzing the issues of Chinese finance, through lecture learning and literature reading of the following 14 Chapters. Moreover, through the theoretical study and case thinking of international finance our students can understand the financial issues closely related to Chinese finance, including RMB exchange rate, Chinas exchange rate determination, Chinese money market and capital market, Chinese international balance of payments, the choice of RMB exchange rate regime, Chinese foreign exchange reserves, and foreign exchange control and RMB internationalization. These will be helpful for our students to promote their abilities to analyze and solve the Chinese financial issues. The teaching contents of this course include fourteen chapters, and will be divided into the following sixteen lectures. The main teaching contents include Lecture 1: Exchange Rate, Foreign Exchange Trading and Exchange Rate Change Lecture 2: Exchange Rate Determination Theory(Exchange Rate Coordination Model Balance of Payments Hypothesis, Currency Model) Lecture 3: Exchange Rate Determination Theory(Portfolio Model, Rational Expectation and^News” Models)
1 Course Syllabus Course code ECON130003.04 Compiled date 2019/4/30 Course title (Chinese) 国际金融 Course title (English) International Finance Credits 3 Total hours 3（16 weeks） Instructor Shen Guobing Department/ Classroom School of economics Forthcoming Semester The first semester Wednesday 6-8 Contact email guobingshen@sina.com Prerequisite courses Macroeconomics, Microeconomics (A)Classification of the course Comprehensive □ Fundamental □ Compulsory √ Elective □ Other □ (B) Course objectives and contents This course is aimed to enable our students to grasp the basic knowledge and general principle of international finance, and apply core economic theory and quantitative methods to analyzing the issues of Chinese finance, through lecture learning and literature reading of the following 14 Chapters. Moreover, through the theoretical study and case thinking of international finance, our students can understand the financial issues closely related to Chinese finance, including RMB exchange rate, China’s exchange rate determination, Chinese money market and capital market, Chinese international balance of payments, the choice of RMB exchange rate regime, Chinese foreign exchange reserves, and foreign exchange control and RMB internationalization. These will be helpful for our students to promote their abilities to analyze and solve the Chinese financial issues. The teaching contents of this course include fourteen chapters, and will be divided into the following sixteen lectures. The main teaching contents include: Lecture 1: Exchange Rate, Foreign Exchange Trading and Exchange Rate Change Lecture 2: Exchange Rate Determination Theory (Exchange Rate Coordination Model, Balance of Payments Hypothesis, Currency Model) Lecture 3: Exchange Rate Determination Theory (Portfolio Model, Rational Expectation and “News” Models)
Lecture 4: Balance of Payments and International Payment System Lecture 5: Adjustment Mechanism of Balance of Payments Imbalance and Balance of Payments Theory Lecture 6: International Financial Market Issues(Money Market, Capital Market Offshore Financial Market) Lecture 7: Financial Innovation and International Financial Derivatives Market Lecture 8: International Banking Supervision and Basel Capital Accord Lecture 9: International Capital Flow and International Investment Theory Lecture 10: Theory of Currency Crisis and Comparison of Debt Crisis between the US and Europe Lecture 11: Classification of Exchange Rate Regimes and Theory of Exchange Rate Regime choice Lecture 12: RMB Exchange Rate Regime and Hong Kong Linked Exchange Rate R Lecture 13: International Reserve and Issues of Chinas Foreign Exchange Reserve Lecture 14: Foreign Exchange Control and RMB Internationalization Lecture 15: Macroeconomic Policy Objectives and Policy Combination Theor Lecture 16: Theory of Optimum Currency Area and Common Currency Area (C)Textbooks and references(at least five Author Title Publisher Year International economics KRugman, P, M Theory and policy Pearson Education Limited //th Edition in Obstfeld and M. Melitz 2018 Part Three and Four The World econom Yarbrough, B V and R 7th Edition in M. Yarbrough Trade and Finance Thomson/South-Western 2006 Part two Hallwood,Pand R. International Money and blackwell Publishers Inc. 3rd Edition, MacDonald 2000 aShen Guobing (rd Edition )ce Peking University Press Aug 2018 sHen Guobing Theory and Practice of International finance Fudan University Press Mar 2018 International economics China Economic gAndolfo 2001 Publishing house
2 Lecture 4: Balance of Payments and International Payment System Lecture 5: Adjustment Mechanism of Balance of Payments Imbalance and Balance of Payments Theory Lecture 6: International Financial Market Issues (Money Market, Capital Market, Offshore Financial Market) Lecture 7: Financial Innovation and International Financial Derivatives Market Lecture 8: International Banking Supervision and Basel Capital Accord Lecture 9: International Capital Flow and International Investment Theory Lecture 10: Theory of Currency Crisis and Comparison of Debt Crisis between the US and Europe Lecture 11: Classification of Exchange Rate Regimes and Theory of Exchange Rate Regime Choice Lecture 12: RMB Exchange Rate Regime and Hong Kong Linked Exchange Rate Regime Lecture 13: International Reserve and Issues of China’s Foreign Exchange Reserve Lecture 14: Foreign Exchange Control and RMB Internationalization Lecture 15: Macroeconomic Policy Objectives and Policy Combination Theory Lecture 16: Theory of Optimum Currency Area and Common Currency Area (C)Textbooks and references (at least five) NO. Author Title Publisher Year 1 Krugman, P.; M. Obstfeld and M. Melitz International Economics: Theory and Policy—— Part Three and Four Pearson Education Limited 11th Edition in 2018 2 Yarbrough, B.V. and R. M. Yarbrough The World Economy: Trade and Finance ——Part Two Thomson/South-Western 7th Edition in 2006 3 Hallwood, P. and R. MacDonald International Money and Finance Blackwell Publishers Inc. 3rd Edition, 2000 4 Shen Guobing International Finance （3rd Edition） Peking University Press Aug. 2018 5 Shen Guobing Theory and Practice of International Finance Fudan University Press Mar. 2018 6 Gandolfo International economics Ⅱ China Economic Publishing House 2001
()Teaching arrangement and key points Week Lesson Contents and key points Text/reference Homework and questions change rate issues, foreign Hallwood and What is the basis of exchange hange Mac Donald(2000)rate change Lecture 3 rate determination and Shen(2018) What are the main factors nfluencing exchange rate exchange rate coherence model, Hallwood and differentiation between elastic balance of payments hypothesis, Mac Donald(2000)price and sticky monetary Lecture lastic price and sticky price Shen(2018) models: understanding real 2 monetary mode interest rate parity; impact of FED interest rate increase on China's economy and trade portfolio balance theory Hallwood and understanding speculative rational expected exchange rate MacDonald(2000) bubble model and chaotic Lecture theory and exchange rate Shen(2018) news"theory determination; development market microstructure theory Analysis of Balance of Krugman, Obstfeld understanding the economic Melitz(2018) Lecture 3 Sino-US trade imbalance and Yarbrough, B &R. of payments;How to adjust the Yarbrough(2006)Sino-US trade imbalance? Shen(2018) adjustment mechanism of Krugman, Obstfeld What are the main measu Lecture balance of payments imbalance, Melitz(2018) regulate the balance of 3 classical and modern Yarbrough,B&R. I payments imbalance? adjustment theory of balance of Yarbrough (2006) Sino-US trade imbalance payments Shen(2018) characteristics and main causes New features of international Hallwood and What are the requirements for financial markets? Money MacDonald (2000) the formation of international Lecture 3market, capital market, offshore Shen(2018) financial markets? Comparing financial market, RMB offshore foreign bonds with European financial market bonds; New Development of China's Financial Market major theories of financial Hallwood and similarities and differences in innovation international Mac Donald(2000) the development of financial Lecture 3 financial derivatives market, Shen(2018) derivatives markets between comparison of financial Gandolfo(2001) China and the US derivatives market development motivation of Citibank's between China and the US financial innovation?
3 (D)Teaching arrangement and key points Week Lesson Contents and key points Text/reference Homework and questions Lecture 1 3 exchange rate issues, foreign exchange transactions, exchange rate determination and adjustment, exchange rate change, foreign exchange risk Hallwood and MacDonald (2000) Shen (2018) What is the basis of exchange rate change? What are the main factors influencing exchange rate change of US dollar? Lecture 2 3 exchange rate coherence model, balance of payments hypothesis, elastic price and sticky price monetary model Hallwood and MacDonald (2000) Shen (2018) differentiation between elastic price and sticky monetary models; understanding real interest rate parity; impact of FED interest rate increase on China’s economy and trade Lecture 3 3 portfolio balance theory, rational expected exchange rate theory and exchange rate "news" theory Hallwood and MacDonald (2000) Shen (2018) understanding speculative bubble model and chaotic model of exchange rate determination; development prospect of foreign exchange market microstructure theory. Lecture 4 3 Analysis of Balance of International Payments, Sino-US trade imbalance and rebalancing, Payment of Balance of Payments Krugman, Obstfeld & Melitz（2018） Yarbrough, B.& R. Yarbrough（2006） Shen (2018) understanding the economic implications of partial balance of payments; How to adjust the Sino-US trade imbalance? Lecture 5 3 adjustment mechanism of balance of payments imbalance, classical and modern adjustment theory of balance of payments Krugman, Obstfeld & Melitz（2018） Yarbrough, B.& R. Yarbrough（2006） Shen (2018) What are the main measures to regulate the balance of payments imbalance? Sino-US trade imbalance: characteristics and main causes Lecture 6 3 New features of international financial markets? Money market, capital market, offshore financial market, RMB offshore financial market Hallwood and MacDonald (2000) Shen (2018) What are the requirements for the formation of international financial markets? Comparing foreign bonds with European bonds; New Development of China’s Financial Market Lecture 7 3 major theories of financial innovation, international financial derivatives market, comparison of financial derivatives market development between China and the US Hallwood and MacDonald (2000) Shen (2018) Gandolfo (2001) similarities and differences in the development of financial derivatives markets between China and the US motivation of Citibank’s financial innovation?
international banking Hallwood and Referring to the basel lll Lecture supervision and Basel capital Mac Donald(2000) please analyze the problems 3 accord, Basel ll,Global and measures of Chinas systemically important banks banking sup on: What the lessons of bank of bahrain? characteristics of international Krugman, Obstfeld What are the management capital flow, debt crisis in Melitz (2018)measures for international Lecture 3 developing countries, Shen(2018) capital flows? An analysis of international investment theory; Gandolfo(2001) the causes, measuring methods Chinas capital flight and"hot and control measures of capital money flight in China irst, second and third Krugman, Obstfeld Compare the first, second and generation monetary crisis Melitz (2018)third generation currency crisis Lecture nodels; A comparison betweenYarbrough, B. &R. models. Comparing the he subprime mortgage crisis in Yarbrough (2006) similarities and differences the Us and the sovereign debt Shen(2018) between US subprime crisis ur and eu sovereign debt crisis Classification of exchange rate Krugman, Obstfeld Compare fixed and floating regimes;"hollowing in the Melitz(2018) exchange rate regimes; To compare the classification of Lecture middle"hypothesis, the factors Shen(2018) 3 of exchange rate regime choice; Gandolfo(2001)exchange rate regimes in 1999 tical hypothes and 2009. what are the main exchange rate regime choice factors influencing the choice of exchange rate regime? The change and choice of RMB Krugman, Obstfeld The main factors influencing exchange rate regime; Melitz(2018)the change and choice of RMB the market-oriented mechanism Shen(2018 Lecture 3 of RMB; two modes of foreign Yarbrough, B and What are the main contents of 12 exchange trading: Hong Kong R Yarbrough RMB mechanism reform" linked exchange rate regime (2006) What exchange rate regime Should Hong Kong adopt characteristics of international Krugman, Obstfeld The main factors affecting a reserves the method of Melitz(2018) country's international reserve Lecture um Shen(2018) demand what are the causes of 13 nternational reserve; China's Gandolfo (2001)Chinese foreign exchange foreign exchange reserve issue main contents of foreign Krugman, Obstfeld What are the conditions for exchange control; free currency Melitz(2018) RMB to be convertible freely in conversion;main contents of Shen (2018) capital account? What are the Lecture 3 RMB conditions for rmB internationalization? The mode RMB internationalization choice of rMB internationalization
4 Lecture 8 3 international banking supervision and Basel capital accord, Basel II, Global systemically important banks Hallwood and MacDonald（2000） Shen (2018) Referring to the Basel III, please analyze the problems and measures of China’s banking supervision; What are the lessons of Bank of Bahrain? Lecture 9 3 characteristics of international capital flow, debt crisis in developing countries, international investment theory; China’s capital flight and “hot money” inflow Krugman, Obstfeld & Melitz（2018） Shen (2018) Gandolfo (2001) What are the management measures for international capital flows? An analysis of the causes, measuring methods and control measures of capital flight in China Lecture 10 3 First, second and third generation monetary crisis models; A comparison between the subprime mortgage crisis in the US and the sovereign debt crisis in Europe Krugman, Obstfeld & Melitz（2018） Yarbrough, B. & R. Yarbrough（2006） Shen(2018) Compare the first, second and third generation currency crisis models. Comparing the similarities and differences between US subprime crisis and EU sovereign debt crisis Lecture 11 3 classification of exchange rate regimes; “hollowing in the middle” hypothesis; the factors of exchange rate regime choice; theoretical hypothesis of exchange rate regime choice Krugman, Obstfeld & Melitz（2018） Shen (2018) Gandolfo (2001) Compare fixed and floating exchange rate regimes; To compare the classification of exchange rate regimes in 1999 and 2009. What are the main factors influencing the choice of exchange rate regime? Lecture 12 3 The change and choice of RMB exchange rate regime; the market-oriented mechanism of RMB; two modes of foreign exchange trading; Hong Kong linked exchange rate regime Krugman, Obstfeld & Melitz（2018） Shen（2018） Yarbrough, B. and R. Yarbrough （2006） The main factors influencing the change and choice of RMB exchange rate regime? What are the main contents of RMB mechanism reform? What exchange rate regime Should Hong Kong adopt Lecture 13 3 characteristics of international reserves; the method of determining the optimum international reserve; China’s foreign exchange reserve issue Krugman, Obstfeld & Melitz（2018） Shen（2018） Gandolfo（2001） The main factors affecting a country’s international reserve demand. What are the causes of Chinese foreign exchange reserve changes? Lecture 14 3 main contents of foreign exchange control; free currency conversion; main contents of RMB capital account convertibility; the prospect of RMB internationalization Krugman, Obstfeld & Melitz（2018） Shen（2018） What are the conditions for RMB to be convertible freely in capital account? What are the conditions for RMB internationalization? The mode choice of RMB internationalization
Lecture macroeconomIc policy Krugman, Obstfeld The Swan model is used 15 macroeconomic Melitz(2018) illustrate the conflict between olicy tools and policy Shen (2018) nternal and external balance 3 coordination theory, Meade's Yarbrough, B and What is the core idea of conflict and Swan model arro Mundell,'s effective market (2006) classification principle? Lecture The measuring criteria of the Krugman, Obstfeld Comparing traditional analysis 16 OCA Theory theory and Melitz(2018)with alternative analysis;what 3 practice of Eurozone; common Shen(2018) are the challenges of eurozone? currency area in East Asian Currency Internationalization modes and the choice of rmb Internationalization target Review and discussion Examination (E)Grading Check Forms Check in Homework Midterm exam Final exam Exam form Open-book D Closed-book Other口 Assessment of this course contains three parts: class participation, homework and final examination,which constitutes 15%, 15% and 70% of final grade respectively. And the final exam is closed exam Your grade will be evaluated based on the following criteria Class participation rk 15 Closed exam 70% Students will be graded as follows a- Achievement excellent relative to the level necessary to meet course requirements b= Achievement significantly above the level necessary to meet course requirements C- Achievements meeting the basic course requirements D= Does not fully meet basic course requirements, but worthy of credit F= Performance failing to meet course requirements O Participation: Each student is expected to attend lectures, complete some related readings and significantly contribute to the seminar discussions. Participation in class discussions is an essential part o Final closed exam is at 13: 00-15: 00 due by January 8, 2020: Classroom: forthcoming Furthermore, our students are reminded that plagiarism is a very serious academic offence and that they should refer to their Student Handbook for confirmation of what it is and the penalties for committing it
5 Lecture 15 3 macroeconomic policy objectives; macroeconomic policy tools and policy coordination theory; Meade’s conflict and Swan model Krugman, Obstfeld & Melitz（2018） Shen（2018） Yarbrough, B. and R. Yarbrough （2006） The Swan model is used to illustrate the conflict between internal and external balance. What is the core idea of Mundell’s effective market classification principle? Lecture 16 3 The measuring criteria of the OCA Theory; theory and practice of Eurozone; common currency area in East Asian Krugman, Obstfeld & Melitz（2018） Shen（2018） Comparing traditional analysis with alternative analysis; what are the challenges of Eurozone? Currency Internationalization modes and the choice of RMB internationalization target Review and Discussion Examination (E) Grading Check Forms Check in √ Homework √ Midterm exam Final exam √ Exam form Open-book □ Closed-book √ Other □ Assessment of this course contains three parts: class participation, homework and final examination, which constitutes 15%, 15% and 70% of final grade respectively. And the final exam is closed exam. Your grade will be evaluated based on the following criteria: Class participation 15% Course homework 15% Closed exam 70% Total 100% Students will be graded as follows: A= Achievement excellent relative to the level necessary to meet course requirements. B= Achievement significantly above the level necessary to meet course requirements. C= Achievements meeting the basic course requirements. D= Does not fully meet basic course requirements, but worthy of credit. F= Performance failing to meet course requirements. ◆ Participation: Each student is expected to attend lectures, complete some related readings, and significantly contribute to the seminar discussions. Participation in class discussions is an essential part. ◆ Final closed exam is at 13:00-15:00 due by January 8, 2020; Classroom: forthcoming. Furthermore, our students are reminded that plagiarism is a very serious academic offence and that they should refer to their Student Handbook for confirmation of what it is and the penalties for committing it
(F)Online sources The syllabus, lecture notes and the other will be available to Students for being downloaded On the academic homepage of Professor Guobing Shen AcademichoMepage:http://www.econ.fudan.edu.cn/teacherdetailphptid=67,andgoto 教学课件( Lecture Notes Dynamic Way: Having face-to-face communications in Room 722, School of Economics Static Way Leaving messages on the above academic homepage, or sending e-mails to guobingshen(@sina.com (G)a brief introduction of the instructors(200-300 words n teachings, heuristic teaching mode in which students are the priority while teacher is the supplement is al ways insisted or 1. Main Achievements in Teachings (1) Guobing Shen(2018), International Finance, 3rd ed(in Chinese),Beijing:Peking University Press, august 2018 (2)Guobing Shen(2018), Theory and Practice of International Finance (in Chinese Shanghai: Fudan University Press, March 2018 (3)Guobing Shen(2013), International Finance, 2nd ed(in Chinese), Beijing: Peking University Press, August 2013. 201 5 Excellent Textbook Prize from Shanghai Education Committee, May 2015 (4)Guobing Shen(2008), International Finance, lst ed.(in Chinese), Beijing: Peking ber 2008 (5)Guobing Shen(2004), International Finance(in Chinese), Shanghai University of Finance Economics Press, September 2004 (6) The construction of the English courses"Introduction to Chinese Finance Development for the exchange students between Fudan University and University of California and other foreign universities 7) The construction of the English course" Monographic Study on Chinese Finance"for foreign students of Chinese Economy of Chinese Finance EMA of Fudan University. 2. Internal and external evaluations of feaching achievements (1)In May 2015, International Finance, 2nd ed. (in Chinese), Peking University Press, which won 2015 Excellent Textbook prize from Shanghai Education Committee (2)In December 2012, won the title of "The Outstanding Teacher of the Undergraduate Teachings of2012” (3)In June 2010, " The Course Construction of the Basic Principles and Practical Problems of nternational Finance was awarded the 3 d prize of" Teaching Achievement Award"of Fudan
6 (F) Online sources The syllabus, lecture notes and the other will be available to Students for being downloaded, On the academic homepage of Professor Guobing Shen: Academic Homepage: http://www.econ.fudan.edu.cn/teacherdetail.php?tid=67, and go to 教学课件 (Lecture Notes) Dynamic Way：Having face-to-face communications in Room 722, School of Economics Static Way： Leaving messages on the above academic homepage, or sending e-mails to: guobingshen@sina.com (G) A brief introduction of the instructors (200-300 words): In teachings, heuristic teaching mode in which students are the priority while teacher is the supplement is always insisted on. 1. Main Achievements in Teachings （1）Guobing Shen (2018), International Finance, 3rd ed. (in Chinese), Beijing: Peking University Press, August 2018. （2）Guobing Shen (2018), Theory and Practice of International Finance (in Chinese), Shanghai: Fudan University Press, March 2018. （3）Guobing Shen (2013), International Finance, 2nd ed. (in Chinese), Beijing: Peking University Press, August 2013. 2015 Excellent Textbook Prize from Shanghai Education Committee, May 2015. （4）Guobing Shen (2008), International Finance, 1st ed. (in Chinese), Beijing: Peking University Press, December 2008. （5）Guobing Shen (2004), International Finance (in Chinese), Shanghai University of Finance & Economics Press, September 2004. （6）The construction of the English courses “Introduction to Chinese Finance Development” for the exchange students between Fudan University and University of California and other foreign universities. （7）The construction of the English course “Monographic Study on Chinese Finance” for foreign students of Chinese Economy of Chinese Finance EMA of Fudan University. 2. Internal and External Evaluations of Teaching Achievements (1) In May 2015, International Finance, 2nd ed. (in Chinese), Peking University Press, which won 2015 Excellent Textbook Prize from Shanghai Education Committee. (2) In December 2012, won the title of “The Outstanding Teacher of the Undergraduate Teachings of 2012”. (3) In June 2010, “The Course Construction of the Basic Principles and Practical Problems of International Finance” was awarded the 3rd prize of “Teaching Achievement Award” of Fudan
University (4)In November 2008, awarded"The Liberal Arts Research Achievement Award"of Fuhua aching Scholarship of Fudan University (5) The"International Finance"edited by Prof. Shen, republished by Peking University Press for several times and Shanghai University of Finance Economics Press, has been sold thousands of copies, which received high praise and recognition from domestic peers, and is listed as textbook for undergraduate teaching and reference book for postgraduate entrance exam 3. Research and Academic visit (1) Finishing three national social science foundation projects, one major project of the ke research base of the Ministry of Education, one Shanghai social science foundation project and Shanghai Pujiang Talent Program, and Shuguang Scholar Program Project (2)At present, hosting a key project of national social science foundation, a major project of the key research base of the ministry of Education (3) Having published seven monographs, edited five textbooks and published more than seventy academic papers (4) These academic works have won nine provincial level awards and other six awards (5) Academic Visitor of Nottingham University during 2008-2009, and Academic Visitor of Oxford University during 2015-2016 *If the course is provided by several instructors, please indicate the one responsible for the course
7 University. (4) In November 2008, awarded “The Liberal Arts Research Achievement Award” of Fuhua Teaching Scholarship of Fudan University; (5) The “International Finance” edited by Prof. Shen, republished by Peking University Press for several times and Shanghai University of Finance & Economics Press, has been sold thousands of copies, which received high praise and recognition from domestic peers, and is listed as textbook for undergraduate teaching and reference book for postgraduate entrance exam. 3. Research and Academic Visit （1）Finishing three national social science foundation projects, one major project of the key research base of the Ministry of Education, one Shanghai social science foundation project, and Shanghai Pujiang Talent Program, and Shuguang Scholar Program Project. （2）At present, hosting a key project of national social science foundation, a major project of the key research base of the Ministry of Education. （3）Having published seven monographs, edited five textbooks and published more than seventy academic papers. （4）These academic works have won nine provincial level awards and other six awards. （5）Academic Visitor of Nottingham University during 2008-2009, and Academic Visitor of Oxford University during 2015-2016. *If the course is provided by several instructors, please indicate the one responsible for the course