1772 S3ATF1/2 Advanced Topics in International Finance
Prof. Mojmir Mrak, Ph.D.
Contact details
Weekly hours
Language of instruction
09/01/23 to 09/22/23
Registration via LPIS
Notes to the course
Subject(s) Master Programs
Day Date Time Room
Tuesday 11/28/23 09:00 AM - 01:00 PM D4.0.136
Wednesday 11/29/23 02:00 PM - 06:00 PM D4.0.136
Thursday 11/30/23 09:00 AM - 01:00 PM D4.0.136
Tuesday 12/05/23 02:00 PM - 06:00 PM TC.4.13
Wednesday 12/06/23 02:00 PM - 06:00 PM D4.0.136
Thursday 12/07/23 09:00 AM - 01:00 PM D4.0.136
Friday 12/15/23 09:00 AM - 11:00 AM D3.0.233

The course consists of three main parts.

  • It will start with examination of the two main components of the global international financial environment, namely (i) balance of payments (including international investment position), and (ii) exchange rates. This introduction is needed for an analysis of the concept and evolution of the international monetary system and of the international financial governance problems we are faced with today.
  • The second part of the course is aimed at two specific risks in international finance, namely (i) foreign exchange risk (including forecasting of foreign rates based on international party conditions) and (ii) country risk (including political risk as well as economic and financial risk).
  • Within the third part of the course, two specific international finance topics will be analysed in some depth. The first one addresses selected forms of international capital flows to emerging economies from official sources (multilateral financial institutions, official development aid) as well as from private sources (selected financial instruments, such as syndicated loans and bonds). The second topic deals with issues of particular relevance for two specific country groups – one for the euro-area’s members and another one for emerging economies – both within the context of COVID crisis and Ukraine war. Analysis of the euro-area members group will be concentrated on the economic governance of the European monetary while the discussion related to the emerging economies group will be focused on growing external debt servicing problems of many countries within this group and on alternatives for effective restructuring of these debts.

Learning outcomes

The main objective of the course is to give participants a focused overview of international finance issues at the global level. The course is designed to combine both a practical and theoretical approaches to global finance. Students will be put into positions of a various players in international finance (foreign direct and / or portfolio investor, creditor, government of the recipient country, multilateral financial institution, etc.). Mathematical context of the course will be kept to a minimum, with the main focus being on institutional aspects as well as on practical application.

After the course, participants are expected to understand main international finance concepts, their relationship to other macroeconomic aggregates as well as institutional aspects of international finance and capital flows at global level. More specifically, participants will be able: 

  • to understand key concepts in international finance,
  • to demonstrate ability to analyse international finance problems and to write issue papers on this subject, and
  • to present ideas on international financial issues in a clear, concise and professional manner

Attendance requirements

At least 80% course attendance is necessary to pass.

Teaching/learning method(s)

The course will be carried out as a combination of lectures, exercises and individual assignments to be done by the participants. Reading assignments will be assigned to the students for each of the lectures. Students are expected to stay current in their reading assignment preparation before class, to regularly attend class and to participate actively in the class discussions.

The course will be implemented as a 6-session module course in the period between 28 November and 7 December 2023. Each of the session will consist of 4 school hours with one 30-minutes break. The schedule of the sessions is as follows:

  • Tuesday, 28 November 14.00 – 18.00
  • Wednesday, 29 November 14.00 – 18.00
  • Thursday, 30 November 09.00 – 13.00
  • Tuesday, 5 December 14.00 – 18.00
  • Wednesday, 6 December 14.00 – 18.00
  • Thursday, 7 December 09.00 – 13.00


    Students will be assessed on:

    • their knowledge on the content domain of international finance,
    • their ability to understand and analyze the issues presented in their home assignments, and 
    • the quality of presentations in class discussions, the written reports and the examination questions; by quality in this context we mean the clarity and persuasiveness of each bit of work. 

    The final grade will be composed on the following four components:

    • Post course assignments                   30 per cent
    • Final Exam                                        70 per cent

    Post module assignments will be introduced in class and will be have to be submitted at the time of the final written exam.

    Final exam – in the form of a written “open book” exam – in the duration of about 90 minutes will be composed of between 6 - 8 questions. Most of the questions will of an essay type while 1 or 2 will be aimed at providing quantitative answers. “Open book” exam means that students may use: (i) all documentation in »hard copy form« they deem appropriate, and (ii) computers / phones, but exclusively to consult documentation that was made available on the WU website of the course. Use of internet for accessing other sources of info / data as well as for accession AI generated texts is not permitted. 

    For a positive grade, a student must reach at least 60 per cent (60 out of possible 100 points), of this at least 35 points must be from the final exam.

    Prerequisites for participation and waiting lists

    Though not obligatory for official enrolment into the course, basic understanding of macroeconomic concepts would be desirable



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    Recommended previous knowledge and skills

    Though not obligatory for official enrolment into the course, basic understanding of macroeconomic concepts would be desirable.  

    Availability of lecturer(s)

    Lecturer can be contacted via mail:


    A course pack consisting of some of the above texts, presentations and cases will be available before the beginning of the course.

    Additional information on MyLEARN.

    A course pack consisting of some of the above texts, presentations and cases will be available before the beginning of the course.

    Unit details
    Unit Date Contents
    1 Part 1
    • Conceptual framework for analysing international finance (part 1) – balance of payments (Tuesday, 28 November; 4 hours)
    • Balance of payments concept
    • Balance of payment analysis
    2 Part 2
    • Conceptual framework for analysing international finance (part 2) – exchange rates and international monetary system (Wednesday, 29 November; 4 hours)
    • Exchange rates and exchange rate policies
    • International monetary system: concept and evolution
    • Global financial governance
    • Post course assignment No. 1: Finnish Maarka and Swiss Franc
    • Post course assignment No. 2: Yuan exchange rate developments and its internationalization
    3 Part 3
    • Specific risks in international finance (part 1) – foreign exchange risk (Thursday, 30 November; 2 hours)
    • Foreign exchange markets and international parity conditions 
    • Foreign exchange risk concept
    • Instruments for foreign exchange risk mitigation


    4 Part 4
    • Specific risks in international finance (part 2) – country risk (Thursday, 30 November; 2 hours)
    • Concept and analytical framework for measuring country risk
    • Credit rating agencies and their importance
    • Post course assignment No. 3: Country risk of an emerging economy
    5 Part 5
    • International capital flows to emerging economies (part 1) – concept of capital flows and their link to macroeconomic aggregates (Tuesday, 5 December; 1 hours)
    • International capital flows and macroeconomic aggregates
    • Classification, volume and structure of international capital flows
    • Liberalization of international capital flows
    6 Part 6
    • International capital flows to emerging economies (part 2) – flows form official sector (Tuesday, 5 December; 3 hours)
    • Multilateral financial institutions
    • Bilateral official flows with special reference to official development aid 
    • Post course assignment No. 4: Cooperation of »your country« with MFIs
    7 Part 7
    • International capital flows to emerging economies (part 3) – flows from private sector (Wednesday, 6 December; 4 hours)
    • Euro-financial markets
    • Syndicated loans
    • Eurobonds
    8 Part 8
    • Specific international finance issue No. 1: Euro-area and its economic governance (Thursday, 7 December; 2 hours)
    • Optimal currency theory as a theoretical basis of monetary unions
    • Original euro-area's economic governance
    • Post-global financial crisis setting of the reformed euro-area’s economic governance
    • COVID and Ukraine crisis and their implications on euro-area’s economic governance  
    9 Part 9
    • Specific international finance issue No. 2: External debt of emerging economies and its management (Thursday, 7 December; 2 hours)
    • Sources of emerging countries’ external debt
    • Debt restructuring of various categories of debts
    • External debt management under COVID crisis circumstances
    • Simulation of the debt restructuring negotiations
    Last edited: 2023-11-15