Class 1: Introduction
Basic vocabulary and tools
National income accounting and balance of payments
Readings: Ch. 13 (KOM), Ch. 5 & 6 (M)
Cases/Exercises:
Krugman, P. (2009). A Country is not a Company. Harvard Business Press.
Self-study questions 1
Class 2: Money and Exchange Rates
The foreign exchange market
The money market
The money market and the exchange rate market in the short run
Readings: Ch. 14 and pp. 354-368 on Ch.15 (KOM), Ch.2 (M)
Cases/Exercises:
Self-study questions 2
Class 3: Long Run Dynamics in the Exchange Rate Market, and Output Effects in the Short Run
Exchange rate market in the long run
Output and the exchange rate in the short run
Readings: Ch. 17 and pp. 368-381 on Ch.15 (KOM), Ch.7 (M)
Cases/Exercises:
Self-study questions 3
Class 4: Output Effects in the Short Run (continued) and Fixed Exchange Rate Regimes
Output and the exchange rate in the short run
Effects of monetary and fiscal policies
Fixed exchange rates and foreign exchange intervention
Balance of payments crises and capital flight (if time permits)
Readings: Ch. 16-18, Ch. 2, 3, 18, and pp. 69-73 on Ch. 4 (KOM)
Ch.7 (M)
Cases/Exercises:
Self-study questions 4
Class 5: Digitalization of Money and Team Case Study Presentations
Characteristics of digital currencies
Exchange rate against digital currencies
Monetary policy with digital currencies
Team case study presentations
Readings: (will be posted).