INTERNATIONAL ECONOMIC PROBLEMS                  Instructor: Noel Brodsky

Economics 4861                                                                      Office: 215D Coleman Hall

Spring 2014                                                                                 Phone: (910) 688-3788

                                                                                                Hours: 1:00pm-2:00pm MWF

                                                                                                               or by Appointment

                                                                                                http://www.eiu.edu/~econinfo

Grade Determination: Undergrads

1 Final Exam (cumulative) 100 points

Optional - 1 Term Paper 100 points

Graduates

1 Term Paper/presentation 100

1 Final Exam (cumulative) 100 points

Paper: Proposal (1-2 page summary of research intent) due Friday, March 31, 2014.  Due date on paper: Monday, April 28, 2014 at 3:00pm.  Two (2) letter grades lost per day thereafter.

 

Expected Grade Distribution and Curve Structure:

Curve Structure:  Average exam score will be set at or near a baseline "B", whenever necessary. 

 The Cutoffs are as follows:

    88% = A, 77% = B, 66% = C, 55% = D, below 55% is an F

 

If you have a documented disability, and wish to discuss academic accommodations, please contact me as soon as possible.

 

Reading Assignments:

    Rivera-Batiz, Francisco and Luis A. Rivera-Batiz., International Finance and Open-Economy Macroeconomics, 2th ed., MacMillan, New York, 1994

 

                                                            Course Structure:

Topic

I.  International Finance

    A. Introduction

    B. The Foreign Exchange Market (Chapter 1)

            1.Spot Markets in Foreign Exchange

            2.Forward and Futures Markets in Foreign Exchange

    C. Central Banks, Exchange Regimes, and the International Monetary System

            (chapter 2)

            1.. The Flow approach to Exchange Rate Determination

            2. The Flow approach to the Balance of Payments

    D. International Money and Capital Markets (Chapter 4)

            1. Covered Interest Parity

    E. Exchange Rate Risk and Uncovered International Investments (Chapter 5)

            1. Uncovered Interest Parity

    F. Asset Markets, the Balance of Payments, and the Exchange Rate (Chapter 19)

            1. The Monetary Approach to the Exchange Rate

    G. The Monetary and Asset Market approach to  the Balance of Payments (Chapter 20)

            1. The Monetary Approach to the Balance of Payments

 

II. Open Economy Macroeconomics

     A. A Broad Picture of the Open Economy: International Transactions and the Balance

            of Payments Accounts (Chapter 9)

            1. Closed Economy Systems

     B. National Income Accounting and the Open Economy (Chapter 11)

     C. The Determination of Output, Exchange Rates, and the Trade Balance (Chapter 13)

     D. Balance of Payments Adjustments and the Macroeconomics of Fixed Exchange

            Rate Regimes (Chapter 14)

      E. Expectations, Exchange Rate Dynamics, and Economic Policy (Chapter 15)

      F. Production, Prices, and Unemployment in the Open Economy (Chapter 16)

      G. Prices, Output, and Economic Adjustment Under Flexible Exchange Rates  (Chapter 17)