Objectives

The objective of this course is to familiarize students with key concepts of the international monetary and financial environment, taking a macroeconomic perspective. Topics covered include:

1. Exchange rates: their behavior, their economic impact, the foreign exchange market, currency crises.
2. Economic policy: macroeconomic policies in an open economy, exchange rate regimes, international monetary institutions.
3. International movements of capital: financial globalization, the balance of payments

Contents

Plan du cours

1. Introduction
2. The balance of payments
3. FX market, exchange rates and interest rates
4. The international monetary system
5. Financial crises
6. The macroeconomic environment
7. Fixed exchange rates
8. Flexible exchange rates

References

The course is based on the following book: Peter J. Montiel, International Macroeconomics, Wiley-Blackwell, 2009.

Pre-requisites

Students should be familiar with concepts covered in the second year macroeconomics course: Analyse Economique - Macroéconomie (Reference : Blanchard et Cohen, Macroéconomie or Mankiw, Macroéconomie)

Evaluation

First attempt

Exam:

Written 2 hours

Documentation:

Not allowed

Calculator:

Allowed

Evaluation:

The grade is based on a final exam (70%) and a short country report (30%). Details on the country report will be given in the first weeks of the course. The exam will cover material reviewed in problem sets as well as various concepts presented during the course.

Retake

Exam:

Written 2 hours

Documentation:

Not allowed

Calculator:

Allowed

Evaluation:

In case of a retake exam, the country report does not count and the total grade is made only of the retake grade.