27290 - International Finance

Academic Year 2014/2015

  • Teaching Mode: Traditional lectures
  • Campus: Bologna
  • Corso: First cycle degree programme (L) in Economics and Finance (cod. 0893)

Learning outcomes

The students develop a detailed understanding of the determinants of exchange rates, balance of payments developments and open economy macroeconomic policy. Special attention will be devoted to exchange rate regimes and monetary unions, with strong emphasis on the euro area.

Course contents

  1. Some basic concepts in international finance: the balance of payments
  2. Some basic concepts in international finance: the foreign exchange market
  3. Spot and forward exchange rates: some more basic issues
  4. Alternative exchange rate regimes and monetary policy
  5. Exchange rate determination: the purchasing power parity
  6. Exchange rates, interest rates and the trade balance
  7. Economic policies and exchange rate regimes
  8. The debate on fixed vs. flexible exchange-rate regimes
  9. The European Monetary Union. Monetary policy and the European Central Bank
  10. The international role of the euro
  11. Currency crises

Readings/Bibliography

P. Krugman - M. Obstfeld, International Economics: Theory and Policy, Pearson.

Teaching methods

Class lectures

Assessment methods

The assessment method is a written exam.

Office hours

See the website of Giorgio Bellettini