International Money and Finance

Module code: EC7075

In this module you will study the issues involved in international finance and economics, and the mechanics of currency markets. This is essential if you are interested in a career in a major financial institution such as a Central Bank or Ministry of Finance/Economics, or in a multinational company.

Topics covered

Exchange rate
Balance of payments
Prices in the open economy
Financial markets in the open economy
Open economy macroeconomics
Monetary model
Mundell-Fleming model
Dornbusch model
Currency substitution
Optional currency areas and monetary union
Market efficiency and rational expectations
The ‘news’ model and exchange rate volatility
The risk premium
Uncertainty: non-linearity, cycles and chaos
Target zones
Crises and credibility