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
Topics
The course is concerned with the study of the main economic factors and mechanisms that explain the determination of external current accounts, real and nominal exchange rate changes and international capital movements. 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.
Content :
Part 1. Definitions and concepts
The course is concerned with the study of the main economic factors and mechanisms that explain the determination of external current accounts, real and nominal exchange rate changes and international capital movements. 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.
Content :
Part 1. Definitions and concepts
- Chapter 1. The balance of payments
- Chapter 2. Exchange rates : definitions and measures
- Chapter 3. The model
- Chapter 4. The case of flexible rates
- Chapter 5. The case of fixed exchange rates
- 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
- Chapter 8. Purchasing power parity, nominal and real exchange rates
- Chapter 9. Exchange rates, expectations, and financial markets : the overshooting phenomena
- Chapter 10. The mechanics of financial crises
- Chapter 11. The economics of debt reduction
Teaching methods
A syllabus is available. The syllabus is supplemented by a list of readings that will be discussed during the class.
Evaluation methods
The formal evaluation is an oral exam. The duration of the examen is about 20 minutes. Each student will have to prepare two questions: one question on theory (syllabus + readings) and one question on a case study. Additional questions will be asked during the exam. The grade will depend on : (1) how well the student masters the concepts and economic mecanisms taugh during the course and (ii) the capacity of the student to apply these concepts and mecanisms to analyse a case study.
Other information
Pre-requisite: Undergraduate macroeconomics
Online resources
Syllabus + slides + readings
Bibliography
- Syllabus "Relations monétaires internationales"
Teaching materials
- Syllabus "Relations monétaires internationales"
Faculty or entity
ECON
