GLOBAL FINANCE

                                                 JIM OWENS

 

SESSION ONE

Topic:  Nature of global markets; size, composition and rationale
                    

Objective:    The first topic is the structure of foreign exchange markets in terms of size, location and mechanisms.  The justification for an active global finance market is the existence of different kinds of market inefficiency.  We will discuss types of currency exposure and what they mean to a multinational firm.   

Readings:           

1. “Executive Summary from 2019 Global Economic Prospects" by the World Bank. Source: https://openknowledge.worldbank.org/handle/10986/31066  (The full document is 240 pages so too lengthy to reproduce.)                                                                                                                                                            

2. “Survey of North American Foreign Exchange Volume” from the Federal Reserve Bank of New York.  Note: the printed material is from October, 2018 whereas I will be presenting April, 2019 data in class.  The April data is not available until July of each year.  Source: https://www.newyorkfed.org/medialibrary/Microsites/fxc/files/2018/aprfxsurvey2019.pdf

3. “International Monetary Fund World Economic Outlook”  Source: https://www.imf.org/en/Publications/WEO/Issues/2019/07/18/WEOupdateJuly2019

4. "Triennial Central Bank Survey" summary from September, 2016 by the Bank for International Settlements. (A link to the survey is provided as the report itself is too lengthy to reproduce. The next update is for 2019 which will be available in early 2020.) Source:https://www.bis.org/publ/rpfx16.htm?m=6%7C35

5. "How a Lone Norwegian Trader Shook the Financial World"

6. “Who Trades and Why”

7. Market Hours: http://fxtrade.oanda.com/analysis/market-hours

Notes I know this is a substantial amount of material if you access the material from the web sites.   It is not expected that you will have read that material before class, but I wanted you to have access to the original documentation supporting some of the exhibits and observations presented in class. If you have a strong interest in international finance and foreign exchange, this will be useful information to study at your leisure.

Day One Links