International Monetary and Financial Economics

Code:

2ECON11

Acronym:

EMFI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2012/2013 - 2S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ME	25	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

The aim of this course is to advance learning in this area and study the current debate on the functioning of the monetary and financial system.

We will study financial crises, looking at themes that are of the utmost current relevance which are the global financial crisis and the crisis in the eurozone. The US debt and the global imbalances will also be analysed. We will study important questions on the reform of the international monetary system, such as the alternatives to the US dollar in the supply of international reserves and the observed accumulation of large reserve holdings.

We will study the functioning of the foreign exchange market, where we will address the behaviour of exchange rates, the carry trade, the exposure to foreign exchange rate risk and the instruments for managing this risk. We will also address important current issues as the case of the Chinese Renminbi and the currency wars.

Learning outcomes and competences

This course will study the main and most recent literature contributions in this area.

The study of this course will be important for a solid qualification in economics, with a view to both entering the job market as well as pursuing doctoral studies.

Working method

Presencial

Program

1. Introduction to the current debate on the international monetary and financial system

2. The recent global financial crisis

3. Effects and transmission of financial crises

4. The eurozone and the recent crisis

5. The occurrence and models of financial crises

6. Early warning systems

7. Global imbalances

8. Exchange rate regimes – the experience and the future

9. The reform of the international monetary system

10. The behaviour of the exchange rate - theory and empirical evidence

11. Foreign exchange market efficiency

12. Foreign exchange risk management 

Mandatory literature

Nelson C. Mark; International Macroeconomics and Finance: Theory and Econometric Methods, Blackwell Publishing, 2001
Carmen M. Reinhart, Kenneth S. Rogoff; This time is different : eight centuries of financial folly, Princeton University Press, 2009
Lucio Sarno and Mark P. Taylor; The Economics of Exchange Rates, Cambridge University Press, 2006
Artigos a ser indicados no decorrer do semestre letivo.

Complementary Bibliography

Paul R. Krugman e Maurice Obstfeld; International Economics: theory & policy, Pearson, 2009
Outra bibliografia a ser indicada no decorrer do semestre letivo.

Teaching methods and learning activities

The course is based on classes with a theoretical component and a practical component. In order to link the subjects of the course with real economic events, relevant news from the economic press will be discussed throughout the semester.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Description	Type	Time (hours)	Weight (%)	End date
Attendance (estimated)	Participação presencial	54,00
Exam	Exame	2,00	100,00
	Total:	-	100,00

Calculation formula of final grade

In the case of a distributed examination process: the final grade is the weighted average of the grades obtained in the following components:

- Assignments: 30%

- Final exam: 70% (minimum required grade of 7,5)

 

In the case of examination by final exam only: the final grade is that obtained in the final exam.

Examinations or Special Assignments

Students may choose a distributed examination process, which comprises assignments during the semester and a final exam.