Global Economics II
Code
1114
Academic unit
null
Department
null
Credits
7,5
Teacher in charge
Miguel Lebre de Freitas
Teaching language
English
Objectives
The aim of this course is to use simple analytical tools to discuss problems raised by the openness of an economy to international flows of money and capital. 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, global imbalances, international policy coordination, and the European Monetary Union.
Prerequisites
Compulsory pre-requisites:
- 1100. Principles of Microeconomics
- 1101. Principles of Macroeconomics
Subject matter
1. National income accounting and Balance of Payments: (SU1-2, KOM 13).
2. The Foreign Exchange Market (KOM 14)
3. The real exchange rate (KOM 16, SL10).
4. Exchange Rate Regimes (SL 10).
5. Money, interest rates and the exchange rate (KOM 15)
6. Output, exchange rates and macro policies (KOM 17,18).
7. The exchange rate question (KO 19, 20)
8. The European Monetary Union (KOM 21).
Bibliography
Teaching method
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: 40%Two mid-terms: 35% (higher grade); 25% (lower grade)
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 on the performance in the final examination.