Students explore the determination of exchange rates in an open economy and policies that governments may adopt to influence their movement. Topics include balance of payments; foreign exchange markets; interaction of the money, interest rates and exchange rates; exchange rates in the long run, including purchasing power and interest rate parity; exchange rates in the short run; fixed exchange rates and foreign exchange intervention; history of the international monetary system; macroeconomic policy under floating exchange rates; and performance of global capital markets and policy issues. Prerequisite: ECON 2330 or ECON 3330 or equivalent; ECON 2950
Students explore the determination of exchange rates in an open economy and policies that governments may adopt to influence their movement. Topics include balance of payments; foreign exchange markets; interaction of the money, interest rates and exchange rates; exchange rates in the long run, including purchasing power and interest rate parity; exchange rates in the short run; fixed exchange rates and foreign exchange intervention; history of the international monetary system; macroeconomic policy under floating exchange rates; and performance of global capital markets and policy issues. Prerequisite: ECON 2330 or ECON 3330 or equivalent; ECON 2950
