ITF-220: The Economics of International Financial Policy

Semester: Spring

Credit: 1.0

Faculty: Jeffrey Frankel

Schedule

Day Time Location
First Day
Meet Day TBD
Review

Description

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.