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KTTS631 Economics of Exchange Rates, 5 ECTS

Economics (ECON)

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You cannot register for the course because the course has expired.
The registration deadline for this course passed 4.9.14 at 23:59.
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organizationweighing coefficient
Economics (ECON) (KTT): 1000 
all other units0 

General information

Begins - ends: 9.9.14 - 16.10.14
Registration period: 3.6.14 at 0:00 - 4.9.14 at 23:59
The registration may be cancelled before 10.9.2014 at 00:00.
Instructor(s): Kari Heimonen (kari.o.heimonen@jyu.fi)
Credits: 5 ECTS cr.
Languages: language(s) of instruction: English; completion language(s): English
Registered: 29
Max participants: 40 (Due to the queuing method used for registration, you may still register for this course even though the number of participants exceeds the maximum.);
Organisations:Economics (ECON) (KTT)

Purchasing Power Parity. Covered and Uncovered Interest Rate Parity. Currency and interest rate arbitrage. Efficiency of foreign and forward foreign exchange market. Rational expectations in currency market. Risk premium in foreign exchange market. Traditional macro models for exchange rate determination: Monetary model, Dornbusch overshooting model, portfolio balance model. Exchange rate regimes. Empirical testing of foreign exchange models. Basics of microstructure in foreign exchange. Some recent topics in foreign exchange.

Learning outcomes:

On successful completion of the course, students will be able to:

  • be aware of exchange rate dynamics
  • comprehend the basic theories of the foreign exchange
  • explain the causes and consequences of exchange rate fluctuations
  • analyze the impacts of economic policy on exchange rate
  • evaluate the efficiency of foreign exchange market
  • evaluate and forecast exchange rates

KTTA160 Macroeconomics, KTTA150 Microeconomics, KTTA250 Econometrics I, KTTA287 Applied Time Series Analysis for Finance and Macroeconomics, KTTS220 Mathematical Economics II


Copeland, L. 2005. Exchange Rates and International Finance. 4th Edition. (or newer)
Cuthbertson, K. & Nitzsche, D. 2004. Quantitative Financial Economics, Stocks
Bonds and Foreign Exchange. 2nd Edition, Chapters 24–27.
Supplementary reading list is provided in the course.
Literature in JYKDOK: http://minerva.lib.jyu.fi/url/KTTS631

[Full information on teaching groups]

Luento [group details and registration]

Lectures [group details and registration]; registered 29, maximum 40
reg.time: 3.6.2014 00:00 - 4.9.2014 23:59
 LocationWeekDayDateAtSupervisorFurther informationURI
1 - 12Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta, Ag Delta37 - 42Tu, Th9.9.2014 - 16.10.2014severalHeimonen