The international financial system 2600-MFBRz2MSF
The course covers topics related to the history and structure of the contemporary financial system and analyzes its key components, such as financial institutions, financial markets, financial instruments, and financial services. At the outset, the evolution of the global financial system and its main components are discussed.
The section on the architecture of the modern financial system presents various categories of financial institutions, including international and regional organizations that play key roles in stabilizing and regulating capital flows. Financial instruments are also analyzed, covering both basic and derivative instruments that enable risk management and support investment activities.
The course discusses in detail the development trends in money and banking. It addresses the forms of money – from commodity/bullion and paper money to electronic money and cryptocurrencies – as well as the significance of gold and currency instruments in the international financial system. The fundamentals of international banking are presented, including the global development of banking systems and the specifics of contemporary international banking. The analysis of financial markets includes the capital market, alternative investments, and geographical aspects of contemporary financial markets, such as major foreign exchange and stock markets, alongside other key international markets.
Systemic innovations and financial crises form another crucial part of the curriculum. The causes and mechanisms driving financial crises are explored through generations of crises and selected case studies. The course also explains methods for resolving financial problems and the methodology used by rating agencies to analyze country risk (sovereign risk).
Further topics address financial system pathologies, such as corruption, market crimes, manipulation, and Ponzi schemes, which challenge market transparency and stability. The role of financial institutions as information sources includes central banks, corporate and investment banks, stock exchanges, and rating agencies, which influence the availability and quality of information in international finance.
The final part of the course is dedicated to major developmental trends, such as sustainable and green finance, which increasingly impact international financial markets and contribute to supporting the energy transition.
Type of course
Learning outcomes
- K_W01: correctly uses terminology related to international transactions and financial markets.
- K_W03: identifies the principles and procedures of financial management and accounting in organizations within the context of the international financial system.
- K_W05: recognizes contemporary problems, processes, and trends in the field of the international financial system.
- K_W05: describes the history and evolution of money, from bullion/commodity money, through paper and electronic money, to cryptocurrencies.
- K_W05: explains the structure of the contemporary international financial system, including the role of financial institutions (international and regional) and financial instruments (basic and derivative).
- K_U01: diagnoses economic and technological problems related to the functioning of organizational finance and international markets, applying an appropriate selection of sources.
- K_U02: characterizes the main developmental trends in international financial markets, such as sustainable and green finance, and the significance of currencies and derivatives in the energy transition.
- K_U02: analyzes the impact of money (commodity, paper, electronic, cryptocurrency) on the international financial system, including inflation and deflation phenomena.
- K_U02: analyzes the causes and consequences of the development of the international banking system.
- K_U02: describes international banking operations, taking into account contemporary development trends in banking.
- K_U02: interprets the impact of complex economic and technological processes and phenomena – such as the role of financial institutions, development trends, crises, and the geographical diversity of markets – on the functioning of the international financial system.
- K_U06: prepares an essay analyzing selected issues related to the functioning and functions of the contemporary international financial system.
- K_K01: critically evaluates complex situations related to trends, financial management, and accounting in organizations within the context of the international financial system.
- K_K03: positively evaluates actions related to the implementation of innovative financial solutions, such as sustainable and green finance, to support the common good, social benefits, and environmental protection.
Assessment criteria
Instead of traditional testing, the instructor expects an active approach to the subject throughout the semester and a critical perspective on the international financial system. The final grade consists of:
1. Term paper/essay (aligned with university standards) – 60 points.
2 & 3. Class assignments & active participation (topics introduced in lectures, sent via email, or discussed in dedicated social media forums) – up to 40 points.
4. Visit to the NBP Money Centre (optional) – 5 points.
Passing threshold: Obtaining at least 50% of the total available points.
Bibliography
I. Primary Literature:
- Mishkin F.S., Ekonomika pieniądza, bankowości i rynków finansowych, PWN 2002.
- System finansowy w Polsce, collective work, PWE (various publication dates).
II. Supplementary Literature:
History of the International Financial System:
- Niall Ferguson, Potęga pieniądza. Finansowa historia świata, Wydawnictwo Literackie, 2008 (popular science series available on YouTube as "The Ascent of Money").
- Visit to the NBP Money Centre, info available on the NBP website.
- VOD popular science series "Czas pieniądza", TVP Historia/NBP.
Architecture, Money & Instruments:
- Górka Jakub, Konkurencyjność form pieniądza i instrumentów płatniczych, CeDeWu 2009.
- Górski Marian, Rynkowy system finansowy, PWN 2018.
- Raport o rozwoju systemu finansowego, NBP, website, June 2021.
- Sopoćko Andrzej, Rynkowe instrumenty finansowe, PWN 2021.
Ponzi Schemes & Crimes:
- Materials from the Polish Financial Supervision Authority (KNF), online.
Financial Crises:
- Dusza M., Pouczające krachy giełdowe, in: Problemy Zarządzania, vol 1, (2) 2003.
- Dusza M., Chaos finansowy, in: Problemy Zarządzania, vol 15 (2) 2017.
- Kryzysy walutowe, collective work, PWN, Warszawa 2001.
- Morawski W., Kronika kryzysów gospodarczych, Wydawnictwo Trio, Warszawa 2003.
- Pietrzak E., 1992, Międzynarodowe operacje walutowe, BMiB, Warszawa.
- Rugman A.M., Hodgetts R.M., 2003, International Business, FT Prentice Hall, London.
- Shapiro A.C., 1999, Foundations of Multinational Financial Management, John Wiley & Sons, NY.
- Tarczyński W., Mojsiejewicz M., 2001, Zarządzanie ryzykiem, PWE Warszawa.
- Buckley A., 2000, Multinational Finance, FT Prentice Hall, London.
- Charbonszczewska E., Oręziak L., 2000, Międzynarodowe rynki finansowe, SGH, Warszawa.
- Eiteman D.K., Stonehill A.I., Moffett M. H., 2001, Multinational Business Finance, 9th ed., Addison Wesley.
- Kozioł W., Zalewska M., 2017, Sustainable finance sector in Poland, in: Dantas A.T., Kozioł W., Siuda-Ambroziak R. (eds), Brazil-Poland. Focus on Environment, WZ UW-UERJ Ed.