ECON 442 - Economics of International Finance and Policy

  • 3 credits

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 requires the use of electronic proctoring through ProctorTrack, please see http://www.online.colostate.edu/current-students/proctoring.dot for detailed instructions. For students requiring accommodations, please contact Resources for Disabled Students (RDS); for consideration of exceptions outside the scope of RDS, please contact the University Testing Center.

This course can be applied towards:

Prerequisite

ECON 304 (Intermediate Economics).

Important Information

Prerequisites: Intermediate macroeconomics, college algebra.

Textbook and Materials

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

Required

  • International Finance: Theory and Policy, 10th Ed. (2014)
    Krugman, Paul R.; Obstfeld, Maurice; and Melitz, Marc
    ISBN: 978-0133425895
  • International Finance: Theory and Policy (online rental), 10th Ed. (2014)
    Krugman, Paul R.; Obstfeld, Maurice; and Melitz, Marc
    ISBN: 978-0133425826
    Not available at the CSU Bookstore

NOTE: Choose one of the above books.

Instructors

Kevin Crofton
Kevin Crofton

kevin.crofton@colostate.edu

Kevin is a Ph.D. student in the Department of Economics at Colorado State University. His fields of study and research are in environmental and regional economics. Prior to attending CSU, Kevin received a B.A. from Albion College in economics and management in 2004. In the past he has taught classes on introductory microeconomics and macroeconomics. He is passionate about sharing his enthusiasm about economics with his students. When not involved in academia, Kevin spends time in the mountains either backpacking or skiing, but even then he is likely still talking to anyone who will listen about rational choices under scarcity.

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