Global Economics II


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





Responsible teacher

Miguel Lebre de Freitas


Weekly - Available soon

Total - Available soon

Teaching language



Mandatory Precedence:

- 1101. Principles of Macroeconomics


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.


Teaching 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).


Programs where the course is taught: