ANU - STUDYAT - Financial Markets

Offered By:	International and Development Economics Program
Academic Career:	Graduate Coursework
Course Subject:	International and Developmental Economics
Offered in:	Second Semester, 2008
Unit Value:	6 units
Course Description:	This course describes the main financial markets and instruments and their use for economic management and development, with emphasis on emerging economies. Four major topics will be covered: financial markets and instruments for monetary and fiscal policy; financial markets and instruments for the management of domestic and foreign debt; the role of the stock market in development; and investment theory, financial derivatives, and the management of official reserves. The course includes a visit to financial institutions in Sydney and relies heavily on case studies.
Indicative Assessment:	Mid term examination 20% Term paper 20% Tutorial assignments 10% Final examination 50%
Course Classification(s):	AdvancedAdvanced courses are designed for students having reached 'first degree' level of assumed knowledge, which provide a deep understanding of contemporary issues; or 'second degree' and higher levels of knowledge; or for transition to research training programs. and SpecialistSpecialist courses are designed for students having reached 'first degree' level of assumed knowledge, which provide for the acquisition of specialist skills; or 'second degree' and higher level of knowledge; or for transition to research training programs; or knowledge associated with professional accreditation.
Areas of Interest:	Economics
Majors/Specialisations:	Economic Policy
Programs:	Master of International Trade and Economic Relations, Master of International and Development Economics, and Master of Economics of Development
Other Information:	Recommended Texts Haugen, Modern Investment Theory, 5th edition, Prentice Hall, 2001 Bodie/Kane/Marcus, Investments, McGraw-Hill, 6th edition, 2006 James Van Horne, Financial Market Rates and Flows, Prentice-Hall, 2001 A "reading brick" of papers and articles will be available for students Additional Reading Dufey and Giddy, The International Money Market, 2nd Edition, Prentice Hall, 1994 Fabozzi and Modigliani, Capital Markets: Institutions and Instruments, Prentice Hall, 1992 Campbell and Viceira, Strategic Asset Allocation, Oxford University Press, 2002 International Monetary Fund, Global Financial Stability Reports. Course Outline 2006 Course Outline Topics Financial markets and instruments for monetary and fiscal policy Money markets and instruments The international money market Case studies:The development of the money market in China: the Asian ‘carry trade' Fixed income markets and instruments; valuation; securitization The government securities market The international bond market Emerging bond markets: debt renegotiations (Paris Club, London Club, bond restructurings) Case Studies: securitization in Australia; Argentina's debt renegotiation The role of the stock market in development The stock market (role, organization, efficiency, regulation) Emerging stock markets Corporate governance issues Case Studies: Enron; the role of private equity funds; Thailand's stock market. Investment theory and the management of official reserves Principles of investment theory; the CAPM Derivatives; future and option markets; role for hedging, leverage and speculation Management of official reserves Case Studies: The collapse of LTCM; the role of hedge funds; reserve management policy of the Reserve Bank of Australia Past Exams Final exam 2005 Midterm exam 2005
Academic Contact:	Dr Patrick de Fontenay

The Role of Financial Markets and Instruments for Economic Management and Development IDEC8083 - Details