Economics and Finance

Formative targets The students who pass the exam will be able to apply the notions studied in the course to the more and more complex economic phenomena, both real and financial, that characterize all open economies. The course is divided into three parts: the first part of the course will introduce some basic notions, such as the foreign exchange market and exchange rate regimes, the international monetary system, the interest parity conditions, the balance of payments and national accounts; the second part will explore the theory of the monetary international economics and will present issues such as the balance of payments adjustment mechanisms, the theories of exchange rate determination, the international capital flows and the problems of the international monetary system; the third part will study the theory and the empirical analysis of international trade and, in particular, the determinants of the international trade patterns (classical, neoclassical and new trade theories), trade policy, globalization and multinational enterprises. Expected learning results The students who pass the exam will be able to understand the causes and consequences of the international economic relations, as regards both the monetary and financial flows and the international flows of goods. Students will explore the most important issues in the actual international economy, such as the external debt sustainability, the international repercussions, the financial and exchange rate crises, the effects of the market internationalization, the economic policies in open economy, and the balance of payment adjustment mechanisms. Students will also learn how to analyze the international determinants of the observed dynamics of the macroeconomic variables, such as real and nominal exchange rate, interest rate, current account, saving and investment, and their interactions.