1. Econ 322- International Finance Spring 2013 Introduction
Ayse Kabukcuoglu

2. Goals of the course
International finance is one of the many elective courses offered by CASE
This course covers timely and important topics in international finance: exchange rates, the balance of payments, and the role of policy
I would like you all to enjoy the course, learn some international finance and get good grades

3. Today’s lecture Syllabus
Textbook, lecture notes, course evaluation (attendance, exams, assignments, quizzes), make-up policy, early final exams
Econ202 and Econ322
A short intro to international finance

4. Textbook: International Macroeconomics, Robert C. Feenstra and Alan M
Textbook: International Macroeconomics, Robert C. Feenstra and Alan M. Taylor (2012), Worth Publishers, 2nd Ed.

5. Authors Prominent international economists
Prof. Robert Feenstra - University of California, Davis
Prof. Alan Taylor - University of Virginia

6. The textbook Available at the bookstore Do you need to buy the book?
We will cover 8-9 chapters (most of the book)
It is fun to read…
You will have homework assignments/study questions from the book
Reading the book will definitely help you get a better grade

7. Lecture notes Slides (in pdf and ppt format)
Detailed and regularly updated
Will be posted after the lecture
No substitutes to the class
Course evaluation will not be based only on the material included in the slides
Anything covered in the class, homework, quizzes, etc. will be important for the exams

8. Course website
go to ‘courseware list’)
All course material will be posted there
lecture notes
past exams
study questions/assignments
announcements

9. Study tips Study on a regular basis
The course material will grow very fast
Each new topic will be related to the previous topic(s)
Solve homework questions for self study
Review the lecture notes and read the book
Go to office hours for further help

10. Office hours My office hours: Tue 3.30 pm-5.30 pm (CAS 276)
Or by appointment
me for an appointment
No office hours this week

11. Teaching assistant Cavit Baran (cabaran13@ku.edu.tr)
Office hours will be announced later this week
Responsible for grading

12. Evaluation Exams: 1 midterm + 1 final
Most questions involve problems with simple math
Some short essay questions
Closed notes/closed book, no calculators, no cheat sheets
The midterm will be held in class
(March 11, 2pm-3:15 pm)
The final exam date TBA by the Registrar
Final exam will be cumulative

13. Evaluation Homework and Quizzes
4 or 5 homework with questions mostly from textbook exercises
I may also assign readings (research papers, newspapers, etc.)
The homework will not be graded
A max. of 10 pop-quizzes related to the homework questions
The lowest 2 of your quiz grades will be dropped

14. Grading Exams: 85% Pop quizzes: 15% (the lowest 2 will be dropped)
max(35% midterm+50% final, 20% midterm+65% final)
(i.e. If you have a dramatic improvement in your second exam grade relative to the first, I will take this into account)
Pop quizzes: 15% (the lowest 2 will be dropped)
Homework: 0%

15. Make-up policy
Exams:
If you have a valid excuse (e.g. health problem or family emergency), you may be eligible for a make-up
Provide a document (e.g. medical report) if possible
You must contact me ASAP when you miss an exam
You can take only one make-up exam (if you miss two exams, the make up will be given for the midterm only)
The make-up will be given at the end of the semester and will be cumulative (date and place TBA)

16. Make-up policy Quizzes:
No make-up quizzes will be given under any circumstances
However, the lowest two of your quiz grades will be dropped

17. Attendance and participation
Attending the lectures and participating in discussions are important
Although you will not be directly evaluated based on attendance/participation, they are essential for performing well in this course

18. Attendance and participation
Please make an effort to join discussions
Do not hesitate to ask questions
Try to pay attention to the class
Please avoid all kinds of distracting behavior
Talking to your neighbors constantly during the lectures
Texting (switch off your cell phones!)
Always coming to the class late

19. Pre-requisites Econ 202 (intermediate macroeconomics)
Prior knowledge of intermediate macro will be assumed on topics such as
IS-LM model
Monetary and fiscal policy; their interactions with key macroeconomic variables
National income accounting

20. Econ 322: International Finance
Course outline
The global macroeconomy
The exchange rate
Balance of payments, policy, etc.
Special topics

21. Econ 322: International Finance
Course outline
The global macroeconomy
a summary of this semester’s topics (Ch. 1)

22. Course outline 2. The exchange rate
Intro. to Exchange Rates and the Foreign Exchange Market, Ch. 2
Exchange Rates I: The Monetary Approach in the Long Run, Ch. 3
Exchange Rates II: The Asset Approach in the Short Run, Ch. 4

23. Course outline
Midterm exam covering chapters 1-4
March 11, in class

24. Course outline 3. Balance of payments
National and International Accounts: Income, Wealth, and the Balance of Payments,Ch. 5
Balance of Payments: Gains from Financial Globalization, Ch. 6
The Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run, Ch.7 

25. Course outline 4. Hot topics in international macroeconomics
Fixed versus Floating: International Monetary Experience, Ch. 8
Topics in International Macroeconomics
(A closer look at issues such as the global financial imbalances, the global macroeconomy and the crisis, etc.) Ch. 11 (if time permits)

26. This course
Is mainly on a country’s economic analysis in a global macroeconomic environment
Will pay attention to Turkish economy to some extent
Will have a heavy focus on the US, Europe as well as emerging economies such as China

27. Courses that you might be interested in
Econ Money and Banking by Selva Demiralp
Econ 480 – Economics of Institutions by Sumru Altug
Econ 481- Turkish Economy by Kamil Yilmaz

28. Any questions?

29. Now: a brief look at the world economy
Some economic updates from the Federal Reserve Bank of Dallas (Readings will be posted)
Focus on GDP growth, inflation, exchange rates and external imbalances
Throughout the course, we will talk about theories and empirical evidence to understand the global economic phenomena
Here are some examples:

30. GDP growth in the world

31. GDP growth and inflation for emerging economies

32. It is not only Turkey facing a currency depreciation…

33. Low inflation in Euro-Area

34. Chinese GDP growth

35. Capital flows to emerging economies

36. Euro-Area net exports