[ 572K2BVZUDK15 ] KS Balance of Payments and Exchange Rates

Es ist eine neuere Version 2018W dieser LV im Curriculum Master's programme Economics 2018W vorhanden.
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Workload Education level Study areas Responsible person Hours per week Coordinating university
3 ECTS B1 - Bachelor's programme 1. year Economics Bernhard Sch├╝tz 2 hpw Johannes Kepler University Linz
Detailed information
Pre-requisites (*)keine
Original study plan Bachelor's programme Business and Economics 2016W
Objectives This is an introductory course on the core field of "Balance of Payments and Foreign Exchange Markets." Students will be introduced to the monetary aspects of a country's international economic transactions. Students will explore the meaning of important concepts such as the balance of payments, the exchange rate, currency markets, international capital mobility, purchasing power parity, and interest rate parity in order to better understand and interpret recent developments in international financial markets as well as understand the implications for government and business policy markets. Specifically we shall address the policy options available to governments in the present era of economic globalization, particularly with respect to international currency systems (flexible vs. fixed exchange rates, currency unions)
Subject The lecture will cover a systematic representation of all foreign transactions (international trade, international capital turnover) in an economy in the balance of payments as well as relationships between these transactions, domestic investment, savings, and the domestic government budget deficit. The course will also cover incentives for foreign exchange transactions with a special emphasis on international capital flows, interest rates and currency risk, the impact of exchange rate movements on domestic goods market and domestic employment, balance of payments equilibrium under fixed exchange rates, monetary and fiscal policy towards internal and external equilibrium at fixed and flexible exchange rates, and key problems of alternative currency systems (special emphasis on the European Monetary Union).
Criteria for evaluation Grading will be based on:

  • Mid-term examination (45%)
  • Final examination (45%)
  • Class participation and attendance (10%)

TOTAL: 100% - minimum grade to pass: 51%.

Methods Lecture, exames
Language English
Study material Basic reference:

  • Paul Krugman and Maurice Obstfeld: International Economics: Theory and Policy,

Pearson, 8th edition (2008).

Other references:

  • Frederic S. Mishkin: Economics of Money, Banking and Financial Markets, Pearson, 8th edition (2010).
  • Laurence Copeland: Exchange Rates and International Finance, Pearson, 5th edition (2008).

(Additional details on course content and readings will be provided in the course syllabus)

Changing subject? No
Further information The course will be held in English.
On-site course
Maximum number of participants 200
Assignment procedure Assignment according to priority