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
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