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Course 2019-2020 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. - OBCUR  |  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


Suggested background knowledge

To feel at ease with this course, students are expected to be comfortable with 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
  • Exercises (exercises, database, software etc.)
DETAILS

In addition to face-to-face lectures, there are two in-class quizzes consisting of multiple-choice 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 on the basis of two partial exams, the final exam, and two in-class quizzes according to the following formula

    • Raw Grade = I(PE1 ≥ 18) x I(Registered for the 2nd partial exam) x 0.5 x [PE1 + I(PE2 ≥ 18) x PE2] + I(Registered for the final exam) x I(Final ≥ 18) x Final + max{Quiz1,Quiz2}, where PE1, PE2.
      • Final are your scores on the first and second partial exams and the final exam. Quiz1 and Quiz2 are your scores for the in-class quizzes. PE1, PE2, and Final are worth 30 points (maximum) and has to be at least 18 points to be considered towards the final grade. 
      • Quiz1 and Quiz2 are worth 1 point (maximum) each. Function I(x) is an indicator function that equals one if its argument x is true and equals zero otherwise.
      • The final grade is the Raw Grade rounded to the nearest integer.
      • Students can take the second partial exam only once and only if they did not take the final exam before. Specifically, the students registered for the second partial exam in the first exam session after the teaching period are not allowed to register for the 2nd partial exam in the second exam session after the teaching period.
      • The students registered for the general exam in the first exam session after the teaching period are allowed to register for the second partial exam in the second exam session after the teaching period.

    Teaching materials
    ATTENDING AND NOT ATTENDING STUDENTS

    The course material consists of:

    • Textbook: P. KRUGMAN, M. OBSTFELD, M. MELITZ, International Economics, 2018, 11th edition.
    • Lecture slides.
    • Articles posted online.
    Last change 04/07/2019 17:57