FIN905S International Financial Institutions

School of Business Administration in Karvina
Summer 2011
Extent and Intensity
1/2/0. 5 credit(s). Type of Completion: zk (examination).
Guaranteed by
prof. Ing. Daniel Stavárek, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives (in Czech)
The aim of the course is to get students gradually acquainted with essential trends and tendencies of the international monetary system development and the role of international financial institutions in the system. The course puts emphasis mainly on activity of the International Monetary Fund, World Bank, regional development banks, Bank for International Settlement and the European authorities and on their influence on world economy and international monetary relations. The special attention is paid on European monetary integration with perspectives of enlargement of European monetary union.
Syllabus (in Czech)
  • Structure of the Course:
    1. Development of international monetary system
    Definition of international monetary system and description of its origin. Golden standard and its basic forms - golden coin, golden bullion, and golden foreign exchange. Principles of the golden standard and its contribution to stability of international financial system. Brettonwood monetary system and its two pillars - convertibility of USD to gold, and fixed exchange rates. The role of USD in world economy, devaluation pressures, Triffin dilemma. Post-brettonwood arrangement and attempts to the exchange rates managing - Jamaica agreement, Hotel Plaza agreement, Louvre agreement. Actual international monetary order, world currencies and exchange rates regimes.
    2. International Monetary Fund
    History of the IMF and reasons for its establishment. Changing role of the IMF in world economy and international monetary system according to its functions and aims. Organizational structure of the IMF, the rights and duties of the member countries. Activities of the IMF in the sphere of international liquidity and exchange rate arrangements. Information, research and advisory policy of the IMF. Relationships between the IMF and the Czech Republic. Lending activity of the IMF, its development and elementary features. Description of the basic lending instruments of the IMF. Concessional financing and the role of the IMF in debt relief process. Main criticisms of the IMF and proposals for its reforming.
    3. World Bank Group
    Establishment of the IBRD as a predecessor of the World Bank. Actual organizational structure, ownership structure, membership, financial resources and results of the World Bank. The World Bank Group - International Bank for Reconstruction and Development, International Development Association, International Financial Corporation, Multilateral Investment Guarantee Agency, International Centre for Settlement of Investment Disputes. Relationships between the World Bank Group and the Czech Republic. Lending activities of the World Bank, its strategy, results and essential lending products.
    4. Regional development banks
    Reasons for establishment of regional development banks and principles of their activities. Introduction of the most important regional development banks - Inter-American Development Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development. Organizational structure and membership. Lending activity, its strategy, principles, risks, financial sources, and results. International political framework of the regional development banks' role and perspectives for the future. Analysis of mutual relations between EBRD and the Czech Republic.
    5. Bank for International Settlement
    Reasons for the establishment, basic facts and organizational structure of the bank. Analysis of the main functions of the BIS - forum for international monetary and financial cooperation, centre of economic and monetary research, bank for central banks, agent and trustee in international monetary relations. Description of activities of the BIS committee, and mainly of the Basel Committee for banking regulation and supervision.
    6. European Central Bank and European monetary integration
    European Central Bank as an authority responsible for independent monetary policy of the European monetary union. Strategy of the monetary policy and description of the basic monetary policy tools and measures. European System of Central Banks. Origins of European monetary integration - Schiller plan, Barre plan, Werner plan. Currency snake and European monetary system. Crisis of the European Exchange rate mechanism in the 1990s. Three stages of the establishment of European monetary union. Stability and Growth Pact and perspectives of the European monetary union.

Literature
    recommended literature
  • BAIMBRIDGE, M., WHYMAN, P. Economic and Monetary Union in Europe. Cheltenham: Edward Edgar, 2003. ISBN 1-84542-233-3. info
  • MUNDELL, RA., ZAK, PJ., SCHAEFFER, D. International Monetary Policy after the Euro. Cheltenham: Edward Edgar, 2003. ISBN 1-84542-121-3. info
  • VREELAND, JR. The IMF and Economic Development. Cambridge: Cambridge University Press, 2003. ISBN 0-52101-695-9. info
  • MUSSA, M. Argentina and the Fund: From Triumph to Tragedy. Washington D.C.: Institute for International Eco, 2002. ISBN 0-88132-339-X. info
  • IMF. Financial Organization and Operations of the IMF. Washington D.C.: IMF, 2001. ISBN 1-58906-067-9. info
  • GILPIN, R. Global Political Economy. Princeton: Princeton University Press, 2001. ISBN 0-691-08677-X. info
  • KENEN, PB. The International Financial Architecture: What's new? What's missing? Washington, D.C.: Institute for International Ec, 2001. ISBN 0-88132-297-0. info
  • DeGRAUWE, P. Economics of Monetary Union. 4th Ed. Oxford: Oxford University Press,, 2000. ISBN 0198776322. info
  • KRUGMAN, PR., OBSTFELD, M. International Economics: Theory and Policy. 5th ed. New York: Addison Wesley, 2000. ISBN 0-321-03387-6. info
  • YEAGER, LB. International Monetary Relations. Theory, History, and Policy. New York: Harper & Row, 1996. info
  • IMF. Articles of Agreement of the International Monetary Fund. Washington, D.C.: IMF, 1988. info
  • GOLD, J. Memebership and Nonmembership in the International Monetary Fund. Washington, D.C.: IMF, 1974. info
Language of instruction
Czech
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Summer 2008, Summer 2009, Summer 2010, Summer 2012.
  • Enrolment Statistics (Summer 2011, recent)
  • Permalink: https://is.slu.cz/course/opf/summer2011/FIN905S