Student guide Facoltà di Economia A.A. 2005/06 Lauree Triennali

The aim of the course is to give the student a framework to interpret and comment the major evolutions on international financial markets.
The course will cover the following major areas: exchange rate determination, open economy macroeconomic policy, international monetary system. The level of presentation of the various topics will utilise mainly a geometrical approach. Continuous reference to real-life economic evolutions is a characteristic of the course.

 1.  Introduction (balance of payments, the foreign exchange market, a brief history of exchange rate arrangements)
2.  Exchange rates and national prices (PPP)
3.  Exchange rates and interest rates (CIP, UIP, market efficiency)
4.  The Mundell-Fleming model of exchange rate determination (a quick revision)
5.  Asset models of exchange rate determination: Monetary model
6.  Asset models of exchange rate determination: Overshooting model
7.  Asset models of exchange rate determination: Fixed or Flexible
8.  Balance of payment crises: theory and recent evidence
9.  IMF: what is it? What would it become?
10. Going beyond monetary considerations in the EMU

There will be a written exam at the end of the course.

Copeland, L.S., Exchange Rate and International Finance, fourth edition, Prentice Hall, 2005.
De Grauwe, P., The Economics of Monetary Integration, fifth edition, OUP, 2003.
S.Suranovic, International finance: theory and policy analysis, (free access on the web).

 

Additional material will suggested at the beginning of the course and will be posted on the web page of the course:  http://nt-notes.liuc.it/didattica/Econ/InternME.nsf