International Finance

We will explore models for analyzing a wide variety of issues in open-economy macroeconomics such as the balance of payments; the determination and behavior of exchange rates; the implementation of monetary and fiscal policy under flexible and fixed exchange rate regimes; the macroeconomic gains and/or pains from financial globalization; optimum currency areas; exchange rate crises and debt crises. We will apply our theoretical framework to an examination of important historical episodes and contemporary policy debates; the textbook will be supplemented with readings from academic articles and mainstream news sources. Active class participation is an important part of the course. Approved field credit for the ECON BA, BS, and Minor Programs.