Course Description:

This course provides an introduction to the institutions, theories, principles, and day-to-day mechanics that govern the international monetary system. We will place special emphasis on the analysis of exchange rates, balance of international payments, and adjustment problems that affect open economies like the United States and the European Union.

At the end of the course, we should be able to understand:

• the implications of the creation of the WTO for trade and growth policies
• the pros and cons of having fixed or flexible exchange rates
• why the world is breaking up into regional trading blocks
• how domestic monetary and fiscal policies are affected by the globalization of capital markets
• how financial crises expand beyond national borders and affect far away countries
• what is an economic union and how its members are affected by taking part in one

This course will follow ongoing economic events and analyze them under the light of the concepts learned. Reading newspapers and/or watching news briefs on TV will increase your chances of grasping the key ideas and getting a good grade.

Prerequisite: Econ 100

Grades determined by bi-weekly on-line quizzes, two in-class examinations, and a comprehensive final exam.