87459 - INTERNATIONAL MONETARY ECONOMICS

Conoscenze e abilità da conseguire

This course covers topics on currency, liquidity and balance of payment crises as well as international financial contagion. Issues pertaining to monetary/financial, exchange rate, in connection with the antecedents and aftermath of crises are studied at both the theoretical and empirical level. It is an advanced course that builds on the standard intertemporal small open economy models with frictions such as imperfect capital markets, intertemporal distortions, and non-tradable goods and applies these theoretical tools to study in detail specific topics inspired by recent events such as financial crises, the global role of the dollar, and the economic effects of the covid virus.

Contenuti

This course is intended to use simple small open economy models to answer many important macroeconomic questions that arise in emerging markets and developing economies, particularly those regarding monetary, fiscal, and exchange rate issues. We want to think in terms of simple models and grasp the fundamentals of open economy macroeconomics.

It is an advanced course that builds on the standard intertemporal small open economy model with frictions such as imperfect capital markets, intertemporal distortions, and non-tradable goods and applies these theoretical tools to a variety of important macroeconomic issues relevant to developing countries (and, in a world of continuing financial crisis, to industrial countries as well), including the relative merits of flexible and predetermined exchange rate regimes. We analyze in detail specific topics such as the “dollarization,” balance of payments crises, and, inspired by recent events, financial crises and the economic effect of the covid virus.

Testi/Bibliografia

One book, suggested but not compulsory:

Obstfeld M., K.Rogoff , Foundations of International Economics,1996 MIT Press

+ papers from international scientific journals

Metodi didattici

Frontal teaching. Theoretical Models will be discussed and developed in class. Particular attention will be devoted to the understanding of model background and empirical implications as well as discussion on policy issues.

Modalità di verifica e valutazione dell'apprendimento

Final written examination. 

The written exam aims at testing the acquired knowledge of the theoretical concepts and the ability to interpret estimation results in the light of the underlying theory.

The written exam is closed book and lasts 1 hour and 15 minutes. It is divided in two parts:

• True , False, Uncertain (answer with concise motivation): 6 questions, 30 points
• Open question (formal answer to theoretical question):  1 question, 30 points.
  

In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same. The exam will be run through Zoom and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam are available on the course page on the VIRTUALE platform.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

 

Strumenti a supporto della didattica

Exercises will be assigned in class but will not be evaluated and considered as part of the final grade.

Orario di ricevimento

Consulta il sito web di Laura Bottazzi