Department of Economics & International Development, Unit Catalogue 2007/08 |
EC30027 International monetary economics |
| Credits: 6 |
| Level: Honours |
| Semester: 2 |
| Assessment: EX 100% |
| Requisites: |
| Before taking this unit you must take EC20010 and take EC20011 |
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Aims: The aim of the Unit is to present a fairly rigorous account of the material that relates to monetary aspects of an open economy. Students will gain a critical appreciation of the theoretical tools used in this important area of economics and a robust analytical framework for the interpretation of policy. Although the unit can be studied as a self-contained module, it forms part of a specialist stream in International Economics, with EC3034 International Trade.
Learning Outcomes: The learning outcomes are that, at the end of the course unit, students will understand the way in which economic theory can be applied to issues such as (i) the use of fiscal and monetary policies in open economies; (ii) UK balance of payments policy; (iii) the workings of the foreign exchange market; (iv) the European monetary system and the issue of UK membership (v) theoretical accounts of international financial crises. Skills: Using deductive reasoning in abstract models. Applying theory to specific contexts. Synthesising relevant material and debates. Content: The course unit emphasises debate mainly at the theoretical level, by generally contrasting a Keynesian real side approach with a more classically inspired monetary approach. Specific topics include: the nature and significance of the balance of payments; parity concepts; the efficient markets hypothesis; devaluation; open economy macroeconomics; flexible versus fixed exchange rates; the foreign trade sector, Europe and international policy co-ordination. Key texts: * L.S. Copeland Exchange Rates and International Finance * P. Hallwood and R. MacDonald International Money and Finance * L.Sarno and M.P. Taylor The Economics of Exchange Rates. |