Course 2018-2019 a.y.

30054 - INTERNATIONAL AND MONETARY ECONOMICS

Department of Economics

Course taught in English
Go to class group/s: 31 - 32
CLEAM (6 credits - II sem. - OP  |  SECS-P/02) - WBB (6 credits - II sem. - OP  |  SECS-P/02) - BIEF (6 credits - II sem. - OP  |  SECS-P/02) - BIG (6 credits - II sem. - OP  |  SECS-P/02) - BEMACS (6 credits - II sem. - OP  |  SECS-P/02)
Course Director:
DMYTRO SERGEYEV

Classes: 31 (II sem.) - 32 (II sem.)
Instructors:
Class 31: DMYTRO SERGEYEV, Class 32: DMYTRO SERGEYEV


Prerequisites

To feel at ease with this course, students are expected to have completed modules in Macroeconomics and Microeconomics and to be familiar with mathematical tools such as exponents, logarithms and derivatives.

Mission & Content Summary

MISSION

The foreign exchange market is by far the biggest market in the world, making exchange rates among the most important prices. People purchasing foreign goods, firms borrowing in foreign currencies, policy makers choosing fiscal and monetary policies are influenced by changes in exchange rates. This course builds on concepts of open macroeconomics to gain the understanding of the exchange rate determinants and their role in recent economic events and policy issues.

CONTENT SUMMARY

The topics covered in class include:

  • The balance of payments and the foreign exchange market.
  • Theories of exchange rate determination in the short and long run.
  • Monetary and fiscal policies under different exchange rate regimes.
  • Optimal currency areas.
  • Monetary institutions.
  • The global financial crisis.
  • The international monetary system: the dollar dominance; the role of the euro; the Emerging Countries and the importance of China’s money and finance.

Intended Learning Outcomes (ILO)

KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...
  • Describe the main drivers of exchange rates in the short and long run.
  • Identify the trade-offs the policy makers face in designing exchange rate policies.
  • Explain the causes and consequences of international financial crises.
  • Summarize the roles of the major currencies in the International Monetary System. 

APPLYING KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...
  • Independently analyze international macroeconomic issues.
  • Compare country-specific experiences depending on their choices of exchange rate policies.
  • Critically interpret articles about world financial markets from major news sources (the Economist, the Financial Times, the Wall Street Journal).
  • Evaluate policy proposals concerning the design of exchange rate policies, optimal currency areas, the international monetary system.

Teaching methods

  • Face-to-face lectures
  • Individual assignments

DETAILS

In addition to face-to-face lectures, there are a number of take-home individual assignments consisting of analytical and open-ended questions.


Assessment methods

  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
   x x
  • Individual assignment (report, exercise, presentation, project work etc.)
 x    

ATTENDING AND NOT ATTENDING STUDENTS

The students are evaluated according to the following formula:

  • Grade = 0.4 * Final Exam + 0.3 * max {Final Exam,Partial Exam} + 0.3 * max {Final Exam, Average of Assignments} where "Final Exam" and "Partial Exam" are final and partial exam scores, "Average of Assignments" is arithmetic average of take-home assignments, "max" is a mathematical operator that chooses the highest number.  

Teaching materials


ATTENDING AND NOT ATTENDING STUDENTS

The course material consists of:

  • Textbook: P. KRUGMAN, M. OBSTFELD, M. MELITZ, International Economics, 2014, 10th edition.
  • Lecture slides.
  • Articles posted online.
Last change 02/06/2018 14:12