International Finance

Key information

Start date
End date
Term 1
Module code
FHEQ Level
Department of Economics

Module overview

The objective of this module is twofold: to provide an analytical training in the critical use of theories of international finance and to provide an opportunity for students to develop critical understanding of current policy debates on regional integration and globalisation, management of open developing economies with large external shocks, dynamics of currency and financial crises, management of exchange rates and capital accounts, international monetary and financial architecture, and other global economic issues. Throughout the course, emphasis is placed on understanding theories as well as on evaluating these theoretical propositions in the light of empirical evidence and real world issues.

Students pursuing a degree external to the Department of Economics should contact the convenor for approval to take this module.

Objectives and learning outcomes of the module

On successful completion of the module, students will be able to:

  • Show an understanding of the theories of international finance and monetary issues and apply them to real world situations.
  • Differentiate the models with capital flows and show their relevance to the global financial crisis.
  • Discuss the issues of international governance and management of financial flow.

Method of assessment

AS1 - 30% / EXAM - 70%

Suggested reading

While a comprehensive reading list will be provided for each topic covered in the module, a basic exposition of standard theories can be found in a number of text books such as:


  • Foundations of International Macroeconomics, by Obstfeld Maurice and Kenneth Rogoff (1996), MIT Press.
  • Development Macroeconomics, 4th Edition, by Pierre-Richard Agenor and Peter J. Montiel, Princeton University Press (2015) - good textbook with focus on development.

In addition, you may find it useful to consult the following reference books for specific topics:

Reference books

  • Jones Ronald W. and Peter B. Kenen eds (1984-85), Handbook of International Economics, Volumes 1 and 2, North-Holland.
  • Grossman Gene and Kenneth Rogoff eds (1995), Handbook of International Economics Volume 3, North-Holland
  • Gita Gopinath, Elhanan Helpman and Kenneth Rogoff eds (2014), Handbook of International Economics Volume 4, North Holland.
  • Lance Taylor (2004) Reconstruction Macroeconomics:  Structuralist Proposals and Critiques of the Mainstream. Cambridge, Mass.: Harvard University Press.
  • Those who have not previously followed an undergraduate course in International Economics may find the following introductory textbooks useful.

Introductory textbook

  • World Trade and Payments: An Introduction, 10th Edition, by Richard E. Caves, Jefferey A. Frankel and Ronald W. Jones, Addison Wesley Longman (2007) - a good all round undergraduate textbook.
  • International Economics: Theory and Policy, 7th Edition, by Paul R Krugman and Maurice Obstfeld, Addison Wesley Longman (2005) - a popular undergraduate textbook.


Important notice regarding changes to programmes and modules