Global Economics II
Objectives
The aim of this course is to use simple analytical tools to discuss problems raised by the openness of an economy to international trade in assets. The course covers the main topics in International Monetary Economics, including the theories of exchange rate determination, stabilization policies under fixed and flexible exchange rates, the choice of an exchange rate regime, and the European Monetary Union.
General characterization
Code
1114
Credits
7.5
Responsible teacher
Miguel Lebre de Freitas
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
Mandatory Precedence:
- 1101. Principles of Macroeconomics
Bibliography
Main references:
Krugman P., Obstfeld M., Melitz, M., 2012. International Economics, 9th ed. Pearson.
Feenstra R. and Taylor A, International Economics, 2nd edition, Worth Publishers, 2012.
Terra C., 2015, Principles of International Finance and Opne Economy Macrieconomics, Academic Press.
Resources
https://mlebredefreitas.wordpress.com/teaching-materials/global-economy-iiTeaching method
The course will be delivered through two lectures (1.5 hours each) and one tutorial session (1.5 hours) each week. The theoretical arguments will be presented in the lectures. Exercises will be tackled in the tutorials.
Evaluation method
The Final Exam is mandatory and must cover the entire span of the course. Its weight in the final grade can be between 30 to 70%. The remainder of the evaluation can consist of class participation, midterm exams, in class tests, etc. Overall, written in class assessment (final exam, midterm) must have a weight of at least 50%.
Final exam: 50% Midterm: 50%For any student that decides to retake the final examination in order to improve the final grade, the course grade will be determined on the basis of solely the performance in the final examination.
Regular exam period:
Continuous assessment elements (and their weights): 50%
Final exam (and its weight): 50%
Resit exam period:
Final exam (and its weight): 100%
Grade improvement in Regular Exam Period:
Continuous assessment elements (and their weights): 50% Final exam (and its weight): 50%
Grade improvement in Resit Exam Period:
Final exam (and its weight): 100%
Subject matter
1. National income accounting and Balance of Payments (FT16).
2. Gains from financial openness (FT17).
3. The Foreign Exchange Market (FT13)
4. Exchange rates in the long term (FT14)
5. Money, interest rates and the exchange rate in the short run (KOM 15).
6. Output, exchange rates and stabilization policies (KOM 17).
7. Fixed exchange rates (KOM 17, FT 20).
8. The choice of an exchange rate regime
9. The European Monetary Union (FT19, 21).