西南財大課件國際金融0-2introduction

1、2022/7/29Chinese Finance Research Institute1International FinanceLiu, XiaohuiSWUFE2022/7/29Chinese Finance Research Institute2IntroductionI. What Is Finance?Allocation efficiency of capital & assets;The working of the capital market and the supply and the pricing of capital assets (Stephen A. Ross);

2、The allocation and deployment of economic resources, both spatially and temporally, in an uncertain environment (Merton, 1995). A simple note on the definitions of capital, asset, and capital asset, etc. is presented in the attached document.2022/7/29Chinese Finance Research Institute3II. The Subjec

3、t of FinanceII.1 Finance AbroadCorporate finance capital structure & corporate governanceAsset pricing or capital marketII.2 Finance in the DomesticMacro-finance Money and Banking, also referred to as Economics of Money, Banking and Financial Markets. In a broader sense, it should be labeled as Mone

4、tary Economics.Introduction2022/7/29Chinese Finance Research Institute4 International Finance, also labeled as Open Economy Macroeconomics, International Monetary Economics, International Macroeconomics, etc., a branch of International Economics.Micro-finance The same to that abroad, introduced into

5、 China ever since 1990s.III. Economics & Finance Arbitrage vs. Demand & SupplyIntroduction2022/7/29Chinese Finance Research Institute5IV. International FinanceIV.1 What Is It About?International monetary analysis focuses on the monetary side of the international economy, a sub-field of International

6、 Economics (Krugman and Obstfeld, 2003). The simultaneous realization of internal and external balances in an open economy, from the perspective of money and finance (Jiang and Yang, 2004). But in their point of view, International Finance is slightly different from open economy macroeconomics.Intro

7、duction2022/7/29Chinese Finance Research Institute6The monetary and macroeconomic relations between countries(Gandolfo, 2002, pp.2; Pilbeam, 2006, pp. xxi) . International Finance is the equivalent to open economy macroeconomics and International Macroeconomics. It deals with the real world issues s

8、uch as balance of payments problems and policy, the causes of exchange rate movements and the implications of macroeconomic linkages between countries (Pilbeam, 2006, pp. xxi).Introduction2022/7/29Chinese Finance Research Institute7IV.2 ContentsThe theory on balance of payments Including elasticity

9、approach, multiplier approach, absorption approach, and monetary approach to balance of payment, etc.The exchange rate economics The determination of the exchange rate under a floating exchange rate regime, and the economics of fixed exchange rate regimes, such as the choice of exchange rate regimes

10、, currency crisis, target zone theory, etc.Policy, policy mix & policy coordinationIntroduction2022/7/29Chinese Finance Research Institute8IV.3 ParadigmsM-F and M-F-D model; Originator & contributors: Mundell (1960; 1963; 1964); Fleming (1962); Dornbusch (1976). Intertemporal approach to the current account; Originator & contributors: Hamada (1969), etc.New open economy ics (NOEM) Originator & contributors: Obstfeld and Rogoff (1995; 1996). Introduction2022/7/29Chinese Finance Research Institute9V. Cour