ITF-220: The Economics of International Financial Policy

Semester: Spring

Credit: 1.0

Syllabus: Click here for syllabus

Faculty: Jeffrey Frankel


Day Time Location
First Day 1/26
Meet Day T/Th 1:15 PM - 2:30 PM L280
Review F 11:45 AM - 1:00 PM STARR


This course deals with the macroeconomics of open economies. The emphasis will be on models appropriate to major countries. Topics covered include: the foreign exchange market, devaluation, and import and export elasticities; the simultaneous determination of the trade balance, national income, the balance of payments, money flows, and price levels; capital flows and our increasingly integrated financial markets; the transfer problem; monetary and fiscal policy in open economies; international macroeconomic interdependence and policy coordination; supply relationships and nominal anchors for monetary policy; the determination of exchange rates in international money markets; and international portfolio diversification. Prerequisites: Microeconomics at the level of API-101 and macroeconomics at the level of API-121. Knowledge of international trade theory and econometric techniques is also desirable, but not essential. Students must be very comfortable with algebra.

May not be taken for credit with Ec 1530.










John F. Kennedy School of Government 79 John F. Kennedy Street
Cambridge, MA 02138
617-495-1100 Get Directions Visit Contact Page