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This course is an introduction to the global
financial markets that are used by banks,
multinational corporations, and government agencies, in
the conduct of their business and implementation of
economic policy. The global financial markets include
the market for foreign exchange, the Eurocurrency and
related money markets, the international capital markets,
the commodity markets and the markets for forward
contracts, options, swaps and other derivatives.
The course seeks to explain how these markets
work both in the context of basic principles of economics
and finance and by means of examples and applications using
several case studies. It will also look at
a very important risk namely the exchange rate risk
for multinational corporations, banks and other entities
(hedge funds, shadow banks, etc.) and discuss how to
manage and hedge these risks using various financial
instruments. Finally the course will provide theoretical
and empirical analysis on the prediction, prevention
and management of various financial crisis, such as
banking, currency, debt and balance of payments crises.
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