5 credits
30.0 h
Q1
Teacher(s)
Bodart Vincent;
Language
French
Main themes
The course is concerned with the study of the main economic factors and mechanisms that explain the determi-nation of external current accounts, real and nominal exchange rate changes and international capital move-ments. The main topics of the course are : the ajustement process of the external current account, the determination of nominal and real exchange rates in the short-run and in the long-run, central bank interventions in the foreign exchange market, the impact of the exchange rate regime on macroeconomic fluctuations, and the mechanics of financial crises.
Aims
At the end of this learning unit, the student is able to : | |
| 1 | At the end of the course, the student is supposed to be able to understand precisely the main concepts, argu-ments, and analyses presented during the class. He must be capable to use the theories presented during the course in order to analyze rigourously international monetary facts and events. |
The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Content
Contents :
Part 1. Definitions and concepts
Chapter 1. The balance of payments
Chapter 2. Exchange rates : definitions and measures
Part 2. The determination of the balance of payments and exchange rates in a general equilibrium macroeco-nomic framework
Chapter 3. The model
Chapter 4. The case of flexible rates
Chapter 5. The case of fixed exchange rates
Part 3. The adjustment process of the external current account
Chapter 6. The effets of devaluation : theoretical and empirical aspects
Chapter 7. The adjustment process of the external current account in a small open economy
Part 4. The determination of exchange rates
Chapter 8. Purchasing power parity, nominal and real exchange rates
Chapter 9. Exchange rates, expectations, and financial markets : the overshooting phenomena
Part 5. Special topics
Chapter 10. The mechanics of financial crises
Chapter 11. The choice of the exchange rate regime
A syllabus is available. The syllabus is supplemented by a list of readings that will be discussed during the class.
Other information
Undergraduate macroeconomics
Oral exam
Syllabus + textbooks + readings
Faculty or entity
ECON
