Course: International Monetary Economics (5201-541)

Persons:

• Prof. Dr. Michael Evers (verantwortlich)

Type of Course:

lecture

In-Class Hours Per Week:

2

Contents:

The lecture provides the students with a sound grounding in modern open-economy macroeconomics. To this end, the course intends to build up the understanding of basic concepts like the balance of payments and the current account, nominal and real exchange rates, net foreign exports, economic activity and macroeconomic policy. We develop a unifying model of open-economy macroeconomics that provides students with a simple yet coherent framework to discuss current
macroeconomic issues subject to public scrutiny. The course is intended for students who have some basic knowledge in macroeconomics. After completing the course, students should be able to give reasonable answers to questions like: What determines the current account? What is the asset-market
approach to exchange rate determination and what is the role of expectations? How does the conduct of monetary and fiscal policy change in the open economy? What is an Optimum Currency Area?

Course Outline:
• National lncome Accounting and the Balance of Payments
• Exchange Rates and the Foreign Exchange Market: An Asset Approach
• Money, lnterest Rates, and Exchange Rates
• Price Levels and the Exchange Rate in the Long Run
• Output and the Exchange Rate in the Short Run
• Fixed Exchange Rates and Foreign Exchange Intervention
• International Monetary Systems: An Historical Overview
• Financial Globalization: Opportunity and Crisis
• Optimum Currency Areas and the Euro

Literature:

The lecture slides will be self-contained, integrating and extending some material from different sources. However, the course will be following very closely the textbook by Krugman, Obstfeld, and Melitz.

The primary reference for the course is:
- Krugman, Paul R., Obstfeld, Maurice, and Melitz, Marc (2015), International Economics: Theory and Policy, Pearson, 10th Edition.

Additional references include:
- Feenstra, R.C. and A.M. Taylor (2014): International Macroeconomics, Third Edition, London: Palgrave Macmillan.
- Harms, Philipp (2016), International Macroeconomics, Second Edition, Mohr
Siebeck.
Further references will be provided throughout the course, particularly when discussing empirical evidence.

Location:

Hohenheim

Module:

• 5201-540 International Monetary Economics (compulsory)