114-0311/04 – International Monetary Relations (MMV)

Gurantor departmentDepartment of EconomicsCredits4
Subject guarantordoc. Ing. Aleš Melecký, Ph.D.Subject version guarantordoc. Ing. Aleš Melecký, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory
Year2Semestersummer
Study languageCzech
Year of introduction2011/2012Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
HLA31 Ing. Karel Hlaváček, Ph.D.
HOD063 doc. Ing. Martin Hodula, Ph.D.
LOK02 Ing. Aleš Lokaj, Ph.D.
MEL044 doc. Ing. Aleš Melecký, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit 2+1

Subject aims expressed by acquired skills and competences

- To outline fundamentals of international currency markets and explain essential concepts in this area. - To describe relations between exchange rates and interest rates and to clarify their impacts upon spot and forward rates. - To identify major determinants of exchange rates development. - To explain differences among exchange rates regimes in common use and central bank's policy that is implied with their usage. - To define exchange rate risk and its management using currency derivatives. - To analyse structure of balance of payments using an example of the Czech republic.

Teaching methods

Lectures
Seminars

Summary

The central themes of the course are selected topics from the international monetary theory as well as from the international financial markets theory. The course is focused on selected topics of theory and practice of international financial markets. The problem areas are: foreign exchange markets, foreign exchange risk and managing of risk through the us of financial derivates, exchange rate modelling and forecasting and balance of payments´ analysis.

Compulsory literature:

MADURA, Jeff. International financial management. London: Cengage Learning, 2017. ISBN 978-1473725508. MISHKIN, Frederick, S., The Economics of Money, Banking and Financial Markets. London: Pearson 2015. ISBN 978-0133836790. MOFFETT, Michael H., Arthur I. STONEHILL a David K. EITEMAN. Fundamentals of multinational finance. Ed. 4th. Upper Saddle River: Pearson, c2012. ISBN 978-0-13-282991-5.

Recommended literature:

BYFORD, M., and MANKIW, G. Principles of Macroeconomics: Australian Edition. 6th edition, South Melbourne: Cengage Learning Australia, 2014. ISBN 9780170248518, 536pp. EITEMAN, David K., Arthur I. STONEHILL a Michael H. MOFFETT. Multinational Business Finance. 14th ed., Harlow: Pearson Education Limited, 2016. ISBN 978-0133879872. SHAPIRO, Alan C.; HANOUNA, Paul. Multinational financial management. Eleventh edition. Hoboken, NJ : Wiley, 2020. ISBN 978-1-119-55984-9.

Way of continuous check of knowledge in the course of semester

Zápočtový test - max. 100%., min. 51%. Podmínky absolvování pro studenty s individuálním plánem jsou stejné. Povinná účast na cvičeních není vyžadována.

E-learning

Studijní opory TpB: https://lms.vsb.cz/course/view.php?id=87985

Other requirements

A written test with a maximum of 100 points. Student must obtain at least 51 points to pass the test.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Introduction to foreign exchange markets. - Exchange rates and quotation. - Function and structure of forex markets. - Interbank forex market. 2. Arbitrage and spot transactions. - Arbitrage and speculation. - Types of transactions on forex markets. - Spot transactions. 3. Forward transactions and hedging currency risk. - Covered interest rate arbitrage. - Quotation of forward transactions. - Hedging in forward contracts. 4. Exchange rates. - Types of exchange rates. - Simple model of exchange rate determination. - Equilibrium and stability in a forex market. 5. Currency futures. - Characteristics of futures contracts. - Factors influencing futures‘ markets. - Hedging with futures. 6. Currency options. - Characteristics of currency options. - Value of an option. - Hedging with currency options. 7. Currency swaps. - Characteristics of currency swaps. - Quotation of currency swaps. - Types and process of currency swaps. 8. Exchange rate determination in short range - asset market model. - Demand for a foreign asset. - Difference between interest rates. - Fisher‘s effect. - Uncovered and covered interest rate parity. 9. Exchange rate determination in long range. - Theory of purchasing power parity. - Parity conditions‘ model. 10. Exchange rates management. - Exchange rate regimes. - Theoretical approaches to exchange rates managing. - Currency interventions and their effectiveness. 11. Development of international monetary system. - Past and present pproaches in the exchange rate management - Tools of exchange rate policy. - Exchange rate policy in Czech republic. 12. Currency crises. - Reasons of currency crises. - Forecasting models. - Approaches to currency crises‘ solutions. 13. Balance of payments. - Balance of payments‘ categories. - Balance of payments in theoretical models. - Adjusting of balance of payments. Seminars: Analysis of foreign exchange markets, spot and forward transactions, managing foreign exchange rate risk and balance of payments

Conditions for subject completion

Full-time form (validity from: 2013/2014 Summer semester, validity until: 2016/2017 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)		Min. number of pointsMax. počet pokusů
Exercises evaluation Credit 85  85 3
Mandatory attendence participation:

Show history

Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2024/2025 (B0311A050004) Applied Economics (S01) International Economic Relations P Czech Ostrava Choice-compulsory type B study plan
2024/2025 (B0412A050005) Finance P Czech Ostrava 2 Choice-compulsory type B study plan
2024/2025 (B0311A050004) Applied Economics (S02) Economic Development P Czech Ostrava Choice-compulsory type B study plan
2024/2025 (B0311EKF016) Economics P Czech Ostrava 3 Compulsory study plan
2023/2024 (B0311A050004) Applied Economics (S02) Economic Development P Czech Ostrava Choice-compulsory type B study plan
2023/2024 (B0311A050004) Applied Economics (S01) International Economic Relations P Czech Ostrava Choice-compulsory type B study plan
2023/2024 (B0412A050005) Finance P Czech Ostrava 2 Choice-compulsory type B study plan
2023/2024 (B0311EKF016) Economics P Czech Ostrava 3 Compulsory study plan
2022/2023 (B0311A050004) Applied Economics (S02) Economic Development P Czech Ostrava Choice-compulsory type B study plan
2022/2023 (B0311A050004) Applied Economics (S01) International Economic Relations P Czech Ostrava Choice-compulsory type B study plan
2022/2023 (B0412A050005) Finance P Czech Ostrava 2 Choice-compulsory type B study plan
2021/2022 (B0311A050004) Applied Economics (S02) Economic Development P Czech Ostrava Choice-compulsory type B study plan
2021/2022 (B0311A050004) Applied Economics (S01) International Economic Relations P Czech Ostrava Choice-compulsory type B study plan
2021/2022 (B0412A050005) Finance P Czech Ostrava 2 Choice-compulsory type B study plan
2020/2021 (B0311A050004) Applied Economics (S01) International Economic Relations P Czech Ostrava Choice-compulsory type B study plan
2020/2021 (B0311A050004) Applied Economics (S02) Economic Development P Czech Ostrava Choice-compulsory type B study plan
2020/2021 (B0412A050005) Finance P Czech Ostrava 2 Choice-compulsory type B study plan
2020/2021 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2019/2020 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2019/2020 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2019/2020 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava Choice-compulsory study plan
2019/2020 (B0311A050004) Applied Economics (S01) International Economic Relations P Czech Ostrava Choice-compulsory type B study plan
2019/2020 (B0412A050005) Finance P Czech Ostrava 2 Choice-compulsory type B study plan
2019/2020 (B0311A050004) Applied Economics (S02) Economic Development P Czech Ostrava Choice-compulsory type B study plan
2018/2019 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2018/2019 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2018/2019 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava Choice-compulsory study plan
2017/2018 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2017/2018 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava Choice-compulsory study plan
2017/2018 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2016/2017 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2016/2017 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2016/2017 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2015/2016 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2015/2016 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2015/2016 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2014/2015 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2014/2015 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2014/2015 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2013/2014 (B6208) Economics and Management (6208R037) Management P Czech Ostrava 3 Choice-compulsory study plan
2013/2014 (B6208) Economics and Management (6208R037) Management (00) Management P Czech Ostrava 3 Choice-compulsory study plan
2013/2014 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2013/2014 (B6202) Economic Policy and Administration (6202R010) Finance P Czech Ostrava 2 Choice-compulsory study plan
2013/2014 (B6202) Economic Policy and Administration (6202R010) Finance (00) Finance P Czech Ostrava 2 Choice-compulsory study plan
2012/2013 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2012/2013 (B6208) Economics and Management (6208R037) Management (00) Management P Czech Ostrava 3 Choice-compulsory study plan
2012/2013 (B6202) Economic Policy and Administration (6202R010) Finance (00) Finance P Czech Ostrava 2 Choice-compulsory study plan
2011/2012 (B6208) Economics and Management (6208R037) Management (00) Management P Czech Ostrava 3 Choice-compulsory study plan
2011/2012 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2011/2012 (B6202) Economic Policy and Administration (6202R010) Finance (00) Finance P Czech Ostrava 2 Choice-compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction



2022/2023 Summer
2021/2022 Summer
2020/2021 Summer
2019/2020 Summer
2015/2016 Summer
2014/2015 Summer
2012/2013 Summer
2011/2012 Summer