84598 - International Monetary Economics - Advanced

Course Unit Page

  • Teacher Laura Bottazzi

  • Credits 5

  • SSD SECS-P/01

  • Teaching Mode Traditional lectures

  • Language English

  • Campus of Bologna

  • Degree Programme Second cycle degree programme (LM) in Economics and Economic Policy (cod. 8420)

    Also valid for Second cycle degree programme (LM) in Economics (cod. 8408)

  • Course Timetable from Nov 08, 2021 to Dec 07, 2021


This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.

No poverty Decent work and economic growth

Academic Year 2021/2022

Learning outcomes

This course covers topics on currency, liquidity and debt crises as well as international financial contagion. Issues pertaining to monetary/financial, exchange rate, debt restructuring, in connection with the antecedents and aftermath of crises are studied at both the theoretical and empirical levels. At the end of the course students will be able to analyze and discuss the role of current account dynamics, international capital flows, financial integration, and world commodity price cycles as these relate to recurring economic booms and bust.

Course contents

This course is intended to use simple small open economy models to answer many important macroeconomic questions that arise in emerging markets and developing economies, particularly those regarding monetary, fiscal, and exchange rate issues. We want to think in terms of simple models and grasp the fundamentals of open economy macroeconomics.

It is an advanced course that builds on the standard intertemporal small open economy model with frictions such as imperfect capital markets, intertemporal distortions, and non-tradable goods and applies these theoretical tools to a variety of important macroeconomic issues relevant to developing countries (and, in a world of continuing financial crisis, to industrial countries as well), including the relative merits of flexible and predetermined exchange rate regimes. We analyze in detail specific topics such as the “dollarization,” balance of payments crises, and, inspired by recent events, financial crises and the economic effect of the covid virus.



Obstfeld M., K. Rogoff, Foundations of International Economics, 1996 MIT Press

papers from international scientific journals

Teaching methods

Frontal teaching. Theoretical Models will be discussed and developed in class. Particular attention will be devoted to the understanding of model background and empirical implications as well as discussion on policy issues.

Assessment methods

Final written examination (90% of the grade) and a referee report (10% of the grade).

The written exam aims at testing the acquired knowledge of the theoretical concepts and the ability to interpret estimation results in the light of the underlying theory.

The written exam is closed book and lasts 1 hour and 15 minutes. It is divided in two parts:

  • True , False, Uncertain (answer with concise motivation): 6 questions, 30 points
  • Open question (formal answer to theoretical question): 1 or 2 questions, 30 points.

In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same. The exam will be run through Zoom and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam are available on the course page on the VIRTUALE platform.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

For students attending the EPELM the grade acquired will contribute to the final grade of the integrated course of Economia Internazionale.


Teaching tools

Exercises will be assigned in class but will not be counted in the course evaluation

Office hours

See the website of Laura Bottazzi