Collège universitaire de Sciences Po Etudes ibériques et latino-américaines, Campus de Poitiers Philippe NOREL Cours Magistral Semestre Printemps 2009-2010 INTERNATIONAL FINANCE Introduction: Definitions and concepts Financial institutions and the national economy Main concepts in Finance The world liberalisation of capital movements First part: International Monetary Economics I – Foreign Exchange Market, Arbitrage, Speculation • • • Covered interest rate parity Foreign exchange position and hedging techniques Foreign exchange options II – Foreign Exchange main relations • • • Uncovered interest rate parity Purchasing power parity Real interest rates parity III – Short term exchange rate • • • Foreign Exchange market short term equilibrium The monetary determinants of exchange rates Overshooting phenomena IV – Long term exchange rate • • The limits to Purchasing power parity Meaning and uses of real exchange rates. Second part: International Financial Economics V – International Financial Integration - Theory and History • • What is International Financial Integration? The Feldstein-Horioka puzzle • The “xenomarkets” historical influence VI – Financial Globalisation • • • Capital flows within the balances of payments Three qualitative reforms The main causes of financial globalisation VII – International Financial Crises • • • The Thailand case : liberalisation, nominal anchor and international illiquidity Old crisis mechanisms… … reinforced by globalisation VIII – Three generations of Exchange Rate Crises • • • Krugman and deterministic approaches Obstfeld and self-fulfilling expectations The third generation models IX – The “subprime crisis” • • • The credit strategy and its consequences Ways t solve the crisis Frome the financial to the economic crisis Third part: Political Economy of the International Financial System X – The International Monetary System • • • The historical evolution of monetary systems A typology of monetary systems Hegemony and monetary systems XI – International regimes • • • Definitions The determinants behind the demand for regimes Collaboration and cooperation regimes XII – Hegemony and hegemonic stability • • • Definitions The links between hegemony and regimes stability Cycles of hegemony XIII – The International Financial Architecture • • • A contemporary financial regime? The IMF recent transformations Preventing systemic risk and global governance. BIBLIOGRAPHY Main textbooks used in this course: AUBIN C., NOREL P., 2000, Economie internationale, Paris, Seuil (Points). KEBABDJIAN G., 1999, Les théories de l’économie politique internationale, Paris, Seuil (Points). KRUGMAN P., OBSTFELD M., 2003, Economie internationale, Bruxelles, de Boeck NOREL P., 1999, Finance internationale, cours de la licence monnaie finance, Poitiers, CNED. Other books: ADDA J., 2004, La mondialisation de l’économie, deux tomes, Paris, La découverte (Repères). AGLIETTA M., BRENDER A., COUDERT V., 1990, Globalisation financière, l’aventure obligée, Paris, CEPII, Economica. AGLIETTA M., REBERIOUX A., 2004, Dérives du capitalisme financier, Paris, Albin Michel. ALLEGRET J-P., 2005, Les régimes de change dans les marchés émergents, Paris, Vuibert. ALLEGRET J-P., COURBIS B., 2005, Monnaies, finance et mondialisation, Paris, Vuibert. BOISSIEU (de) C., 2004, Les systèmes financiers, mutations, crises et régulation, Paris, Economica. BOURGUINAT H., 1999, Finance internationale, Paris, PUF. BOYER R., DEHOVE M., PLIHON D., 2004, Les crises financières, Rapport du Conseil d’Analyse Economique, Paris, La Documentation Française, (cae.gouv.fr) CHAVAGNEUX C., 2003, Economie Politique Internationale, Paris, La découverte. FERRERI J-B., 2000, Économie financière internationale, Paris, Bréal. GEMDEV, 1999, Mondialisation, les mots et les choses, Paris, Karthala. GILLOT P., PION D., GOURLAOUEN J-P, 2004, Le nouveau cambisme, Paris, Eska. JACQUET P., PISANI-FERRY J., TUBIANA L., 2002, Gouvernance mondiale, Paris, La documentation française. KEOHANE R.O., 1984, After Hegemony – Cooperation and Discord in the World Economy, Princeton, Princeton University Press. NOREL P., 2004, L’invention du marché : une histoire économique de la mondialisation, Paris, Seuil. PLIHON D., 1999, Les taux de change, Paris, La Découverte. PLIHON, 2003, les désordres de la finance : crises, corruption, mondialisation, quelles politiques, Paris, Universalis. SIROEN J-M, 2002, Relations économiques internationales, Paris, Bréal. STRANGE S., 1988, States and Markets – An Introduction to International Political Economy, London, Pinter.