This course is to be regarded as an introduction to the world of international finance. After attending this course, students will have an insight into the standard theories of exchange rate determination as well as of international macro-economic policy making, including their empirical applications.|
Please note that this course is only open to students of the Economics program and cannot be used as an elective for other programs.
In the first part of the course, a model is developed to illustrate the interrelations between exchange rates, interest rates, price levels and product market developments, both in the short and in the long run, and both under flexible and under fixed exchange rates.|
In the second part, this model is applied to actual cases of international macroeconomic policy making. Topics to be addressed include macroeconomic policy and international coordination under floating exchange rates, optimum currency areas, the European experience (EMU) and international financial markets.
Lectures and tutorials
Type of instructions
assignments (25%), mid-term exam (25%), final exam (50%)
Type of exams
- Krugman, Obstfeld, Melitz, International Economics, Theory and Policy, Pearson, 11th Global Edition (parts 3 and 4). ISBN 978-1292214870
- Lecture slides and other materials as indicated on the Canvas site that accompanies this course.