Course 2017-2018 a.y.



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. - OBCUR  |  12 credits SECS-P/02) - BIG (6 credits - II sem. - OP  |  SECS-P/02)
Course Director:

Classes: 31 (II sem.) - 32 (II sem.)

Course Objectives

The course builds on the concepts of macroeconomics in an open economy to discuss the determinants of exchange rates and the consequences of exchange rate policies for output and prices in the short and in the long run. A brief history of the international monetary system also explains the establishment of the single European currency. Basic elements of European central banking are discussed and specific issues are dealt with more in depth, mainly relating to recent monetary developments including the global financial crisis.

Intended Learning Outcomes
Click here to see the ILOs of the course BIEF

Course Content Summary

  • The balance of payments and the foreign exchange market.
  • A simple theory of exchange rate determination, in the short and in the long run.
  • Fixed exchange rates and foreign exchange intervention.
  • Monetary and fiscal policies with different exchange rate regimes.
  • From Bretton Woods to the euro: theory and experience of optimal currency areas.
  • Monetary institutions and strategies in the euro area.
  • The international financial crisis: monetary policies and financial stability.
  • The coming future of the international monetary system: the dollar problem; the role of the euro; the emerging Countries and the importance of China’s money and finance.

Teaching methods

Assessment methods
Click here to see the assessment methods BIEF

Detailed Description of Assessment Methods

Students are evaluated based on a written exam.

In order to pass the written exam, students have two possibilities

  • They can take the partial midterm exam at the end of March and the second part of the exam in May. If students pass the first partial, they are admitted to the second part. The two partials are equally weighted (50% each) to compute the final grade.
  • The second possibility is to take one single exam (general exam) either in May, June or September. Students that fail to pass the exam in May can take the general exam in any other of the scheduled dates (June or September). Students that have passed the partial exam in March can withdraw from the second part in May (for instance because they are unsatisfied of the partial grade and want to improve on it undergoing the general exam) by simply not registering for it or not showing up on that day and can directly take the general exam. Apart from this case, under no conditions a passed exam (or part of it) can be taken again in order to improve the grade.


  • P. Krugman, M. Obstfeld, M. Melitz, International Economics, 2014, 10th edition.
Exam textbooks & Online Articles (check availability at the Library)
Last change 09/05/2017 15:55