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The main objective of this course is to introduce students international finance markets and instruments. Students would understand exchange rate determination theories and international capital flow systems.
National Income Accounting and Balance Of Payments. Exchange Rates and The Foreign Exchange Markets. Money, Exchange Rates and Interest Rates. Price Levels and Exchange Rates In The Long Run. Output and The Exchange Rate In The Short-Run. Fixed Exchange Rates and Foreign Exchange Intervention. International Monetary System. Macroeconomic Policy and Coordination Under Floating Exchange Rate. Optimum Currency Areas and European Experience. The Global Capital Market.
Upon succesful completion of this course, a student will be able to
1. Formulate national income accounting and balance of payments for given countries and numbers.
2. Discuss exchange rate determination in the long-run.
3. Explain the interaction between money, interest rates and exchange rates in the market.
4. Compare fixed exchange rate regime and floating exchange rate regime.
5. Review international monetary system.