114-0511/01 – International Monetary Relations (IMR)
| Gurantor department | Department of Economics | Credits | 5 |
| Subject guarantor | doc. Ing. Aleš Melecký, Ph.D. | Subject version guarantor | doc. Ing. Aleš Melecký, Ph.D. |
| Study level | undergraduate or graduate | Requirement | Choice-compulsory |
| Year | 1 | Semester | summer |
| | Study language | English |
| Year of introduction | 2009/2010 | Year of cancellation | 2018/2019 |
| Intended for the faculties | EKF | Intended for study types | Bachelor, Follow-up Master |
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
Individual consultations
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:
Recommended literature:
Way of continuous check of knowledge in the course of semester
E-learning
Other requirements
no special requirements
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. Exchange rate policy in transition economies.
- Approaches in an 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.
Conditions for subject completion
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction
Předmět neobsahuje žádné hodnocení.