ECON4122 International Economics (II)

Content

Chapter 1 The Global Macroeconomy

Foreign Exchange: Currencies and Crises | Globalization of Finance: Debts and Deficits | Government and Institutions: Policies and Performance | Conclusions

Homework 1
Chapter 2 Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rate Essentials | Exchange Rates in Practice | The Market for Foreign Exchange | Arbitrage and Spot Exchange Rates | Arbitrage and Interest Rates | Conclusions

Homework 2
Chapter 3 Exchange Rates I: The Monetary Approach in the Long Run

Exchange Rates and Prices in the Long Run | Money, Prices, and Exchange Rates in the Long Run | The Monetary Approach | Money, Interest Rates, and Exchange Rates in the Long Run | Monetary Regimes and Exchange Rate Regimes | Conclusions

Chapter 4 Exchange Rates II: The Asset Approach in the Short Run

Exchange Rates and Interest Rate in the Short Run: UIP and FX Market Equilibrium | Interest Rates in the Short Run: Money Market Equilibrium | The Asset Approach: Applications and Evidence | A Complete Theory: Unifying the Monetary and Asset Approaches | Fixed Exchange Rates and the Trilemma | Conclusions

Midterm Exam 1
Chapter 5 National and International Accounts: Income, Wealth, and the Balance of Payments

Measuring Macroeconomic Activity: An Overview | Income, Product, and Expenditure | The Balance of Payments | External Wealth | Conclusions

Chapter 6 Balance of Payments I: The Gains from Financial Globalization

The Limits on How Much a Country Can Borrow: The Long-Run Budget Constraint | Gains from Consumption Smoothing | Gains from Efficient Investment | Gains from Diversification of Risk | Conclusions

Chapter 7 The Balance of Payment II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Demand in the Open Economy | Goods Market Equilibrium: The Keynesian Cross | Goods and Forex Market Equilibria: Deriving the IS Curve | Money Market Equilibrium: Deriving the LM Curve | The Short-Run IS-LM-FX Model of an Open Economy | Stabilization Policy

Midterm Exam 2

Chapter 5 ~ 7 (except p.18-p.22 and section 6)

Homework 3
Chapter 8 Fixed Versus Floating: International Monetary Experience

Exchange Rate Regime Choice: Key Issues | Other Benefits of Fixing | Fixed Exchange Rate Systems | International Monetary Experience

Chapter 9 Exchange Rate Crises: How Pegs Work and How They Break

Facts About Exchange Rate Crises | How Pegs Work: The Mechanics of a Fixed Exchange Rate | How Pegs Break I: Inconsistent Fiscal Policies | How Pegs Break II: Contingent Monetary Policies | Conclusions

Final Exam