ECON 442 - Economics of International Finance and Policy

  • 3 credits
View available sections

Balance of payments, adjustment mechanisms, and international monetary systems.

This course covers the macroeconomic side of international economics. You will explore in detail the functioning of international financial markets. The first part of the course is all about exchange rate and introduces the key macroeconomic quantities: the national and international accounts and the balance of payments. The last part confronts the role of policy and applications of international macroeconomics.

By the end of class you should be able to:

  • explain the basic theory of exchange rates including a discussion of the monetary approach and asset approach to the determination of exchange rates;
  • discuss external wealth and valuation effects;
  • explain the key macroeconomic quantities: the national and international accounts and the balance of payments;
  • evaluate one of the major policy issues in international finance, the choice of fixed versus floating exchange rates;
  • analyze exchange rate crises, common currencies with particular focus on the euro, the failures of uncovered interest parity and purchasing power parity, the debate over global imbalances, and the problem of default.

This course can be applied toward:


ECON 304 (Intermediate Economics).

Important Information

Prerequisites: Intermediate macroeconomics, college algebra.

Textbooks and Materials

Textbooks and materials can be purchased at the CSU Bookstore unless otherwise indicated.


  • International Economics - Loose Leaf
    Krugman, Paul R.; Obstfeld, Maurice; and Melitz, Marc
  • International Economics: Theory and Policy, 10th Ed. (2014)
    Krugman, Paul R., Obstfeld, Maurice, and Melitz, Marc
    ISBN: 978-0133423648


Fathalla Barasi
Fathalla Barasi

Fathalla Barasi is a PhD student and an instructor in the Department of Economics at Colorado State University. Fathalla is originally from Libya. In addition to earning his master’s degree in economics from the University of Benghazi, he worked at that university as a lecture assistant for four years. His research interests include stabilization policies and economic growth.

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