Student guide Facoltą di Economia A.A. 2004/05 Lauree Triennali

International monetary economics
Aim of the course
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.
(Detailed syllabus)
1. Introduction (balance of payments, the foreign exchange market, a brief history of exchange rate arrangements) (C) chpt 1;
2.   exchange rates and national prices (PPP) (C) chpt 2;
3.   exchange rates and interest rates (CIP, UIP, market efficiency) (C) chpt 3, 11;
4.   the Mundell-Fleming model of exchange rate determination (a quick revision)  (C) chpt 6;
5.   asset models of exchange rate determination: Monetary model (C) chpt 5;
6.   asset models of exchange rate determination: Overshooting  model (C) chpt 7;
7.   asset models of exchange rate determination: Portfolio model (C) chpt 8;
8.   topics I: Optimum currency areas and the European Monetary Union (C) chpt 10 or (DG) chpt 1,2,3;
9.   topics II: Currency crisis;
10. topics III: The regulation of the International Financial System.
There will be a written exam at the end of the course.
Reading list
Past references include:
(C)    Copeland, L.S., Exchange Rate and International Finance, third edition, Addison-Wesley, 2000.
(DG) De Grauwe, P., The Economics of Monetary Integration, fifth edition, OUP, 2003.
(K)    Kreinin, M.E., International Economics. A Policy Approach, eighth edition, Dryden.