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, interdependence, and the European Monetary Union.
Prerequisites
Mandatory Precedence:
- 1101. Introduction to Macroeconomics
Subject matter
1. National income accounting and Balance of Payments.
2. Gains from financial openness.
3. The Foreign Exchange Market.
4. Exchange rates in the long term.
5. Money, interest rates and the exchange rate in the short run.
6. Output, exchange rates and stabilization policies.
7. Fixed exchange rates.
8. The choice of an exchange rate regime.
9. The European Monetary Union.
Bibliography
Krugman, P., Obstfeld, M. Melitz, M., 2012. International Economics, 9th ed. Pearson Feenstra, R. and Taylor, A, International Economics, 2nd edition, Worth Publishers, 2012.
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
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.