18064 - International Monetary Economics

Learning outcomes

This course deals with the monetary and macroeconomic relations between countries. Particular attention will be devoted to modern theories relating to the balance of payments and exchange rate determination.

At the end of the course, the student will be able to analyze important issues such as:

• Economics costs and benefits of the introduction of the euro and the effects on European consumers and producers
• The relationship between the euro and the dollar and the future role of the euro in foreign exchange and financial markets
• The optimal choice of exchange rate system, with a focus on emerging  economies

Course contents

1. National accounting and the balance of payments
2. The foreign exchange market and montary policy in open economies
3. Exchange rates and prices
4. Exchange rates and interest rates
5. Exchange rates and trade balance
6. Monetary approach to the exchange rate. The Dornbusch model
7. The debate on exchange rate regimes.
   
8. The European Monetary Union. Monetary policy and the European Central Bank
9. The international role of the euro.
10. Speculative attacks and currency crises.
    

Readings/Bibliography

Colombo E., Lossani M., Economia Monetaria Internazionale, Carocci 2003.

Krugman, P. e Obstfeld M, Economia Internazionale 2, Hoepli, terza edizione, 2003.

Assessment methods

Written examination

Links to further information

http://www2.dse.unibo.it/belletti/internazionale.html

Office hours

See the website of Giorgio Bellettini