PROF. JOHN M. VEITCH OFFICE:UC 508
CLASS TIME: M 6:15-8:55 P.M. PHONE: 422-6271
OFFICE HOURS: M 4:30-5:45 SEMESTER: SPRING 2003
E-MAIL: veitchj@ usfca.edu CLASSROOM: LM 351
ECON 671: INTERNATIONAL FINANCE
COURSE DESCRIPTION: The world today has become increasingly international, and it is
unlikely that any business or individual is unaffected by international economic forces. This
course emphasizes the workings, the institutions, and the dynamics of international financial
markets against the backdrop of international macroeconomic policies. It provides preparation
for students who wish to understand activities such as foreign currency trading, hedging
strategies for international business, the relationship between exchange rate movements and
capital flows, and the function of multinational corporations, commercial banks, arbitrageurs,
and central banks in these processes. We will try to understand how these elements interact at a
theoretical level and identify how the real world often diverges from this ideal.
International financial markets are at the intersection of micro markets, the international
macroeconomy, and the economics policies of many nations. As a result, this course must blend
the techniques of microeconomics (demand/supply, optimization) with the tools of
macroeconomics (multiple market interactions, multiplier reasoning). A healthy dose of
institutional detail and current policy problems will help focus our analysis.
CLASS ATTENDANCE:
I place a high value on class attendance. Undoubtedly you will too after the midterm. If you
must be absent from class please alert me the week before or leave a message for me at 422-
6271. You can also leave a message by e-mail if you desire.
TEXT: There is no single text that seems to cover all the topics well so I have put together a set
of readings that cover the course topics. These readings will be available next week. A good text
for a reference is:
D. Appleyard and A. Field Jr., International Economics Payments, Exchange Rates, and Macro
Policy, 3rd edition, Irwin, McGraw-Hill Publishers, 1998.
You would do well to read the Wall Street Journal, Financial Times or The Economist during
the course. It will keep you up to date on international issues and may prove valuable as a
context in which to interpret questions on the midterm or final.
I will also post notes, overheads, and practice questions on my website. My homepage can be
reached at www.usfca.edu/economics/veitch. Please e-mail me (see my address at top of page)
with your E-mail address in case I need to contact you during the course.
GRADING SCHEME:
Weekly Quizzes 30 %
Midterm Exam 30%
Final Exam 40%
