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