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 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, 11th Ed.
    Krugman, Paul R., Obstfeld, Maurice, and Melitz, Marc
    ISBN: 139780134519548


Bharman Gulati
Bharman Gulati

Bharman is currently a Ph.D. candidate at Colorado State University. His fields of research are financial, and regional economics. Before attending CSU, Bharman received graduate degrees in business, finance and economics from University of Nevada, Reno (UNR). He has a variety of professional and academic experiences, from teaching at Front Range Community College and being a teaching assistant for various classes at Colorado State University to working as an inbound transportation planner at OH Logistics and a real estate researcher at Center for Regional Studies, UNR. In his free time, Bharman enjoys hiking, soccer, and cricket.