Lect#

         Topic and Readings                                                                                              Assignment 

Weekend 1

1

1. Wikipedia.com-Macroeconomics (CP, W) or OL at http://en.wikipedia.org/wiki/Macroeconomics  At the bottom of this page click link to Category: Macroeconomics and then choose:

        Measures of national income and output, National Income and Product Accounts, IS/LM model

2. US Federal Reserve, Monetary Policy and the Economy, US FED Reserve Board (CP,W)

    

   Other helpful info:  US Monetary Policy – Q&A about the FED – San Francisco FED (W)

2

1. IFM Chpt 3

2. Is the US Current Account Deficit Sustainable? Cooper, CESIfo Forum, 2005 (CP, W)

 For Fun (OL only) :
Global Economic Monitor – Is the US CA Deficit Sustainable? (http://www.rgemonitor.com/96)
US Bureau of Economic Analysis –US Trade /BOP data (http://www.bea.gov/bea/di1.htm ) 

Practical Debate: 
The Overstretch Myth, Levey and Brown Foreign Affairs, March/April 2005 (W)
How Scary Is the Deficit?  Setser and Roubini, Foreign Affairs, Jul/Aug 2005 (W) 

3

1.   IFM: Chpt 5 pp. 111 - 128

2. All About the Foreign Exchange Market in the United States, FRBNY, Chpts 2 and 5  (CP, W) or OL at: http://www.newyorkfed.org/education/addpub/usfxm/)

3. Big Mac Index, Economist (CP, W) or OL (http://www.economist.com/markets/bigmac/index.cfm)  

Extra Analysis:    
    A Prism into the PPP Puzzles – Parsley and Wei (W)

Problem Set #1 (W): Due 8/27 11:59pm EDT  (email to bodnar@jhu.edu)

Weekend 2

8/30

4

1. IFM: Chpt 5 pp. 106 – 111, and Chpt 6

2. All About the Foreign Exchange Market in the United States, FRBNY, Chpts 3, 4, and 7 (CP, W) or OL at: http://www.newyorkfed.org/education/addpub/usfxm/)

3. Triennial Survey of Foreign Exchange and Derivatives Market Activity 2004, BIS 2004, (CP, W) or OL at http://www.bis.org/publ/rpfx04.pdf)

FOR FUN: (proceed at own risk) 
Oanda.com website for currency fun (try FXMap) at http://www.oanda.com
FX retail investments at http://www.everbank.com/main.asp?affid=eb  

5

1. All About the Foreign Exchange Market in the United States, FRBNY, Chpt. 11 (CP, W) or OL at http://www.newyorkfed.org/education/addpub/usfxm/ )

2. Anomalies, Froot and Thaler, JEP 1990 (CP)

Advanced optional reading:
         The Economics of Exchange Rates, M Taylor, JEL (1995) (W)

8/31

6

1. IFM: Chpt 2
2.  All About the Foreign Exchange Market in the United States, FRBNY, Chpt. 10 (CP, W) or  OL at http://www.newyorkfed.org/education/addpub/usfxm/)

      Good Review of Global Imbalances

           World Survey, Economist, Sept 22, 2005 (excerpts) (W)

Problem Set #2 (W): Due 9/10 11:59pm EDT  (email to bodnar@jhu.edu)

Weekend 3

9/13

1.  IFM Chpt 8 pp. 192 – 193, Chpt 9 pp. 225 - 234

2.  Corporate Exposures to Exchange Rates, classnote (CP or W)

3.  On the Measurement of Operating Exposure to Exchange Rates: A Conceptual          Approach," Flood and Lessard, FM 1986. (CP)

4.  Identifying, Measuring and Hedging Currency Risk at Merck, J. Lewent and A. Kearney,  JACF, 1990 (BP #13).

Extra Reading on Translation Exposure:   
FAS #52-Measuring the Performance of Foreign Operations, B Carsberg 1983. (CP)
IFM: Chpt 10

8

1.  Techniques for Managing Economic Exposure,” classnote  (CP, W)

2. IFM: Chpt 8  pp. 194 - 211

9

1. IFM: Chpt 12

2. Techniques for Managing Economic Exposure,  classnote  (CP, W)

3. Wharton 1998 Survey of Financial Risk Management by U.S. Non-Financial Firms, (CP, W) or OL at http://finance.wharton.upenn.edu/~weiss/research

Problem Set #3 (W): Due 9/24 11:59pm EDT  (email to bodnar@jhu.edu)

Weekend 4   : Classes will be 4 - 6pm Sat and 8:00 - 12:15 on Sunday

9/27

10

1. IFM: Chpt 15

11

1.  IFM: Chapter 17

2. Globalization of Capital Markets and the Cost of Capital: The Case of Nestle, R. Stutz, JACF, Fall 1995 (CP)

12

1.  IFM: Chpt 18, 21 and 16

Case: Return of Lafarge (W) – Due 10/11 (in class)

13

14

1. IFM: Chpts 11, 12, and 13

2. Guidelines for Global Financing Choices, Lessard and Shapiro, MCFJ, 1983 (CP)

Sample Exams and Solutions (W)