International Monetary Economics

Code:

1EC404

Acronym:

EMI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2013/2014 - 2S (of 10-02-2014 to 06-06-2014)

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

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LECO	88	Bologna Syllabus since 2012	3	-	3	42	81

Teaching language

Suitable for English-speaking students

Objectives

The study of international economics can be divided in two parts: “International Trade” and “International Monetary Economics”. This course will focus on the later, the monetary side of international economics, that is, the financial transactions. We will study financial crises and monetary unions, during which we will be able to address the current important issues that are the recent global financial crisis and the difficulties that the eurozone has been facing. We will also study the theories and the behaviour of exchange rates, exchange rate policy and the functioning of the international monetary system. That will afford the opportunity to focus on important issues such as China’s exchange rate policy, the role of the US dollar and the debate on the future of the international monetary system.

Learning outcomes and competences

It is the aim of this course to maintain a strong link between theory and practice. At the theoretical level, students will study concepts and models that are fundamental to understand and analyse international economic events. At the practical level, the course will study particular events of the world economy so as to apply the theory to the analysis and explanation of real case studies. Towards this, throughout the semester we are going to follow the economic press, analysing current issues on the basis of the materials covered in the classes. The study of this course will prove to be not only interesting but also rewarding and fundamental in the qualifications of an economist, both with a view to pursuing more advanced studies or embarking on a professional career.

Working method

Presencial

Program

1. The determination and behaviour of exchange rates

1.1 Introduction: exchange rates and foreign exchange market

1.2 Interest rates and exchange rates

1.3 Money market and exchange rates

1.4 Prices and exchange rates

1.5 Exchange rates, economic activity, and the balance of payments

2. Exchange rate policy and regimes

2.1 Introduction: exchange rate regimes

2.2 Central bank intervention in the foreign exchange market

2.3 The international monetary system: from the Gold Standard to Bretton Woods

2.4 Fixed and flexible exchange rates

3. Monetary unions

3.1 The European experience

3.2 The Euro and the Euro zone economic policy

3.3 Optimum currency areas

3.4 The Euro zone and the financial crisis of 2007-09

4. Financial crises

4.1 Emerging markets

4.3 Crises models

4.2 Analysis of international financial crises

4.4 The current debate on the future of the international monetary system

Mandatory literature

Paul R. Krugman e Maurice Obstfeld; International Economics: Theory & Policy, 9ª edição, Pearson, 2011

Complementary Bibliography

www.imf.org
www.ecb.int
Robert J. Carbaugh; International Economics, 14ª ed., South-Western Cengage Larning, 2012
Paul De Grauwe ; Economics of Monetary Union, 9ª ed., Oxford University Press, 2012

Teaching methods and learning activities

The course is based on a theoretical component and a practical component whereby the concepts learned will be used in the interpretation of cases from the real world. Throughout the semester, we will refer to relevant news from the economic press, discussing them in light of the theoretical approaches studied, for better integration of what is taught in the current economic events.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	80,00
Trabalho escrito	20,00
Total:	100,00

Eligibility for exams

In order to be examined on the basis of two tests, students must attend a minimum number of classes. The minimum requirement is that students must attend 75% of the classes. Attendance is calculated as the ratio between the number of classes effectively attended by the student and the number of classes taught until the date of the test. Students can choose between being examined by tests of a final exam until the date of the final exam. If the student misses one test, then examination must be made by final exam.

Calculation formula of final grade

In the distributed examination process the final grade is the weighted average of the grades obtained in the following components (Erasmus students only):

• Several assignments to be done during classes: 50%;
• Final test: 50% (date: 2/June/2014)
• Students must obtain a minimum grade of 6.0 values in the test.

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