International Monetary and Financial Economics

Code:

2ECON11

Acronym:

EMFI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2020/2021 - 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	33	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

We aim to advance learning, at a pre-experience Master level, in this area and study the current issues on the functioning of the international monetary and financial system.

We aim to acquire advanced knowledge on the functioning of the foreign exchange market, studying the behaviour of exchange rates, the carry trade, and the foreign exchange rate risk. We will apply this knowledge on the analysis of current issues as the case of the Chinese Renminbi and the currency wars.

We aim to understand financial crises, including the global financial crisis and the crisis in the eurozone; as well as to study other relevant international topics, as the global imbalances. We aim to understand the important questions on the reform of the international monetary system, such as those relating to the role of the US dollar as a reserve currency and the accumulation of large reserve holdings.

With the aim to provide students with profound and up-to-date knowledge on the functioning of the international monetary and financial system, this course will study important and recent literature contributions in this area.

The study of this course will be important for a solid qualification, reinforcing previous education, with a view to entering the job market and pursuing doctoral studies.

Learning outcomes and competences

Describe and relate fundamental international macroeconomics concepts.

Use analytical methods in international monetary and financial economics.

Working method

Presencial

Program

 

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

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

3. Foreign exchange market efficiency

4. Foreign exchange risk management

5. Exchange rate regimes – the experience and the future

6. The occurrence and models of financial crises

7. The recent global financial crisis

8. Effects and transmission of financial crises

9. The eurozone and the recent crisis

10. Early warning systems

11. Global imbalances

12. The reform of the international monetary system

 

Mandatory literature

C. Paul Hallwood and Ronald MacDonald; International Money and Finance, Blackwell Publishing, 2000
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.; Articles to be indicated throughout the semester.

Complementary Bibliography

Paul R. Krugman e Maurice Obstfeld; International Economics: theory & policy, Pearson, 2009
Outra bibliografia a ser indicada no decorrer do semestre letivo.; Other bibliography to be indicated throughout the semester.

Teaching methods and learning activities

 

Classes with theoretical and practical components, integrating theory with empirical evidence.

We will also analyse and discuss particular cases, while keeping track of the current economic affairs. 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.

In this way, students will be able to use the acquired theoretical knowledge in order to understand the main current international macroeconomic issues.

 

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	160,50
Frequência das aulas	42,00
Total:	202,50

Eligibility for exams

 

Available choices for examination:

1) Distributed examination process, which will comprise two tests that examine different parts of the program of the course: the first test will take place in the classes and the second test will take place in the date of the first final exam. 

2) Examination by final exam.

All enrolled students may access examination by final exam.

Calculation formula of final grade

 

In the distributed examination process: the final grade will be the average of the grades obtained in the two tests (each test has a weight of 50% for the final grade).

In the case of examination by final exam: the final grade will be that obtained in the final exam.

 

Classification improvement

Classification improvement is only possible by means of final exam.