MSc in International Economics, Banking and Finance

The MSc in International Economics, Banking and Finance provides a rigorous training in modern economic and financial methods as they are applied to monetary, banking, financial and international economic problems in the real world.

The MSc in International Economics, Banking and Finance will be of particular interest to recent graduates with solid quantitative skills who wish to specialise in the money and banking field.

It will also interest those who graduated less recently and who are currently working in a financial institution or other private or public sector body, such as a central bank or national treasury.

In the autumn semester students follow four core modules in Micro- and Macroeconomics, Quantitative Methods and Principles of Finance.

In the spring semester, students take three core modules and one elective module.
Following the taught component, students then complete a dissertation on a suitable economics topic.

In the autumn semester students follow four core modules in Micro- and Macroeconomics, Quantitative Methods and Principles of Finance.

Autumn Semester

Four compulsory modules

Macroeconomics

This module provides a solid understanding of macroeconomic analysis and its application to monetary and financial issues. Topics covered include: a review of the basics of income and interest rate determination; aggregate demand and supply, and open economy macroeconomics continuing with macroeconomic policy analysis; expectations in macroeconomics; business cycles; policy credibility and reputational aspects of policy.

Quantitative methods

This module provides theoretical and practical training in mathematical and econometric methods and their application to monetary and financial problems. Topics covered include: a review of basic mathematical and statistical methods: the linear regression model, static and dynamic models; specification tests; simultaneous equations and forecasting, with applications to problems in banking and finance. This module is taught so that material will be accessible to any reasonably numerate student. The emphasis is on teaching students how to conduct practical quantitative research projects for themselves.

Microeconomics: Economics of Uncertainty

This module provides a solid understanding of microeconomic analysis and its application to the analysis of uncertainty. Topics covered will include: theory of the consumer; choice under uncertainty; efficient allocation of risk; asset markets, adverse selection and moral hazard; the principal-agent model; signalling and screening.

Principles of Finance

This module is concerned with the workings of global financial markets. Topics include: introduction to portfolio analysis; mean variance and the capital asset pricing model; arbitrage pricing theory; the concept of diversification for risk management; risk reduction strategies by the use of derivatives; different notions of efficiency and their implications.

In the spring semester, students take three core modules and one elective module.

Spring Semester

Three compulsory modules

Issues in Money and Banking

This module addresses current issues in money, banking and finance. Topics include: the role and development of central banking; monetary control; regulated versus deregulated banking, monetary disequilibrium, the Japanese banking crisis; the potency of monetary policy when interest rates are zero; currency boards and case studies in Hong Kong and Argentina; economic development of India and China; monetary policy in China.

Principles of Money and Banking

This module provides the theoretical background in monetary economics and finance. Topics include: review of the definition of money, properties of a monetary economy, measurement of money; the neutrality of money, the invalid classical dichotomy, the real balance effect, money-in-the-utility function, the cash-in-advance model, overlapping generations model of money; the classical quantity theory, liquidity preference, Baumol, Tobin, precautionary demand, Miller-Orr model, buffer stocks model; money supply determination, intermediate targets, interest rate pegging and price level determinacy; rules versus discretion, time inconsistency, reputation and credibility, central bank independence, desirability of a conservative central banker, optimal contracts for central bankers; the lending channel and the Bernanke and Gertler model.

International Banking

This module is concerned with the principles and problems of international banking. Topics include: trends in international banking; banking structures; the theory of the banking firm; credit rationing; risk management; securitization; financial regulation; international bank regulation and banking law.

and one elective module

Development Finance

This module provides training in the economic underpinnings of the financial issues which affect developing countries. Topics include: economic development strategy; project evaluation; domestic and external sources of finance; taxation and public sector control; central banking in developing countries; regulation and credit control; financial deepening; exchange rate and interest rate management; financial market development.

International Finance

This module is concerned with the financial operations of enterprises in the foreign exchange market. It provides an analytical background for the evaluation of the mainstream theories of exchange rate determination and links these to domestic and international macroeconomic policies. Topics include: the macroeconomics of the open economy; exchange rate fundamentals; theories of spot and forward exchange rate determination; currency options; FOREX.

International Trade

This module will examine all the main aspects of international trade. Starting with neo-classical trade theory, the module then moves on to look at the new trade theory, which emphasises economies of scale and imperfect competition, then analyses strategic trade policy. Finally, the module will focus on firms within the global economy, and the extent to which the actions of multinational enterprises can influence trade and growth.

Economic Forecasting

This module provides training in the methods of forecasting used in commercial enterprises. It also introduces the methods of macroeconomic forecasting. Topics include: univariate techniques; extrapolation, charting, Box-Jenkins; the use of survey information, leading indicators, and futures and forward markets; Black-box and VAR methods; econometric models, combining forecasts, the ragged edge problem and signal extraction; nonlinear modelling. This module is recommended only for those students who have an undergraduate background in economics.

Marketing of Financial Services

This module offers students the opportunity to understand the role of marketing in a financial services context. Topics include: marketing re-introduced; services marketing; the extended marketing mix; characteristics of services and service quality; key service quality issues and the measurement of service quality; future developments of the financial services industry; communications in financial services; brand development in financial services.

Following the taught component, students then complete a dissertation on a suitable economics topic.

Dissertation

Students will be required to submit a dissertation of not more than 20,000 words. This gives students a chance to explore a particular topic in depth and provides them with the opportunity to test the applicability of their new learning whilst under close supervision.

Assessment

The taught component of the programme is examined by both assessed work and university written examinations which are held at the end of each semester. The assessed work would be one of the following: essay, group work project, individual project or class test. Candidates who satisfy the examiners will proceed to the project stage of the programme and prepare for a dissertation.

Residential Programme

Dissertation proposals are presented and reviewed at a residential conference at Gregynog Hall in mid Wales. This secluded university conference centre is based in a Victorian country hall in maintained grounds is an ideal location for group working and study sessions.