Economics 446/546

International Finance

 

Exam: Wednesday, May 14 1:00-3:00

 

Rescheduled office hours for May 13: 3:00-4:00

 

Syllabus

 

Lecture Notes

1 National Income and Balance of Payments Accounting (Chapter 12)

2 Exchange Rates (Chapter 13)

3 Money supply and the exchange rate (Chapter 14)

4 Price and the exchange rate in the long run (Chapter 15)

5 Output and the exchange rate (Chapter 16)

6 Chapter 16 model extensions

7 Fixed Exchange Rates and Exchange Market Intervention (Chapter 17)

8 International Monetary Systems (Chapter 18)

9 Fixed versus Flexible Exchange Rates (Chapter 19)

10 European Monetary Union (Chapter 20)

11 Global Capital Markets (Chapter 21)

12 Currency Crises

13 Developing Countries (Chapter 22)

 

 

Homeworks

·       Due 2/13/08 Chapter 12, problems 2, 6, 10; Chapter 13, problems 6 ,14; Chapter 14, problems 1, 4, 6, 10.

·       Answers to 2/13/08

·       Due 2/29/08 Analyze the effect of  1) a decrease in the money supply, 2) an increase in investment, 3) an increase in full employment output on the exchange rate, level of output, price level, and current account in the short run when prices are sticky and in the long run when prices are flexible.

·       Due 4/25/08: questions 1,3,4,6,7,8,9 from 2007 final exam

 

Paper

Instructions for short paper