International Monetary Economics

Code:

1EC404

Acronym:

EMI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2023/2024 - 2S

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	85	Bologna Syllabus since 2012	3	-	3	42	81

Teaching language

Portuguese and english

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. It is the aim of this course to maintain a strong link between theory and practice.

Learning outcomes and competences

At the theoretical level, students should be able to (i) understand and use concepts and models that are fundamental to analyse international monetary and financial events; (ii) describe and analyse critically the evolution of the internacional monetary system, the process of creating the Euro Area, and the origin and evolution of financial crises.

At the practical level, the student shoud be able to apply the theory to the analysis and explanation of real case studies, namely at the level of the analysis of the determination and behaviour of the exchange rate in the exchange market.

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 Global fixed exchange rate systems

2.4 The international monetary system: the Gold Standard

2.5 The international monetary system: Bretton Woods

2.6 Fixed and flexible exchange rates

2.7 The international monetary system after 1973

3. Monetary unions

3.1 The European experience

3.2 Optimum currency areas

3.3 The Euro zone, the financial crisis and the public debt crisis

4. Financial crises

4.1 Developing countries

4.2 Analysis of international financial crises: from developing economies to the main developed economies

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

Mandatory literature

Paul Krugman, Maurice Obstfeld e Marc Melitz; International Finance: Theory and Policy, 12ª ed., Pearson, 2023
; Material colocado na página da uc no Sigarra

Complementary Bibliography

www.imf.org
www.ecb.int
Robert J. Carbaugh; International Economics, 18ª ed., South-Western Cengage Learning, 2022
Paul De Grauwe; Economics of Monetary Union, 14ª ed., Oxford University Press, 2022

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	60,00
Trabalho escrito	20,00
Participação presencial	10,00
Apresentação/discussão de um trabalho científico	10,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	25,00
Frequência das aulas	39,00
Trabalho escrito	12,00
Apresentação/discussão de um trabalho científico	5,00
Total:	81,00

Eligibility for exams

All students enrolled in the course can take 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:

• Final test: 60% (June 13 and July 2 - retake; minimum grade: 7.0 points in 20);
• Class (and Moodle) participation: 10%;
• Essay: 20% (essay's submission May 6; minimum grade: 7.0 points in 20);
• Essay discussion: 10% (during class on May 13); minimum grade: 7.0 points in 20)

Examination by final exam the final grade is that obtained in the final exam:

• Regular period: June 13, Thursday, 8:30 am;
• Reassessment period: July 2, Tuesday, 8:30 am..