- Docente: Giorgio Bellettini
- Credits: 8
- SSD: SECS-P/01
- Language: English
- Teaching Mode: Traditional lectures
- Campus: Bologna
- Corso: First cycle degree programme (L) in Economics and Finance (cod. 8835)
Learning outcomes
The course deals with monetary and macroeconomic relations between countries. Specifically, it covers topics such as balance of payments problems and policy, the causes and consequences of exchange rate movements, the implications of macroeconomic linkages between countries, costs and benefits of the European Monetary Union. At the end of the course, the student will be able to understand and analyze important issues such as the global interdependence of macroeconomic policies, the implications of exchange rate policies on emerging countries economies, 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.
Course contents
- Some basic concepts in international finance: the balance of payments
- Some basic concepts in international finance: the foreign exchange market
- Spot and forward exchange rates: some more basic issues
- Alternative exchange rate regimes and monetary policy
- Exchange rate determination: the purchasing power parity
- Exchange rates, interest rates and the trade balance
- The monetary approach to the balance of payments and the exchange rate
- The debate on fixed vs. flexible exchange-rate regimes
- The European Monetary Union. Monetary policy and the European Central Bank
- Currency crises
Readings/Bibliography
Main textbook is:
P. Krugman - M. Obstfeld - M. J. Melitz, International Finance:Theory and Policy, Global Edition, 10th edition, Pearson, 2015.
Teaching methods
Class lectures
Assessment methods
Students' assessment will be based on a written test, aimed at evaluating their comprehension of the main concepts developed throughout the course. The test will also assess students' ability to analyze current real-world issues and problems, related to international economics and finance. After the first half of classes, students have the opportunity to take a mid-term exam, followed by a final exam at the end of classes.
Students can reject a passing grade (i.e. above 17/30) only once. To this end, he/she must email a request to the instructor, who will acknowledge receipt of the message.
Teaching tools
Teaching material will be available on Moodle platform at: iol.unibo.it
Office hours
See the website of Giorgio Bellettini