6 ECTS credits
180 h study time

Offer 1 with catalog number 1000377BNW for working students in the 2nd semester at a (B) Bachelor - advanced level.

Semester
2nd semester
Enrollment based on exam contract
Impossible
Grading method
Grading (scale from 0 to 20)
Can retake in second session
Yes
Enrollment Requirements
Students must have taken 'Intermediate Macro-economics' or 'Macro-economie' and 'Financial Markets and Institutions', before they can enroll in ‘International Monetary Economy'.
Taught in
English
Faculty
Faculty of Social Sciences & SolvayBusinessSchool
Department
Applied economics
Educational team
Leo Van Hove (course titular)
Eduardo Daniel López Vila
Activities and contact hours
39 contact hours Lecture
11 contact hours Seminar, Exercises or Practicals
130 contact hours Independent or External Form of Study
Course Content

The following topics will be covered: national accounts, the balance of payments and the issue of the ‘global imbalances’; spot exchange rates and the foreign exchange market; the law of one price, purchasing power parity, real exchange rates, and long-run nominal exchange rates; economic policy in an open economy; pros and cons of floating vs. fixed exchange rates, the effectiveness of interventions on the foreign exchange market; exchange rate systems through the ages; European monetary integration, the ECB and the euro.

Time permitting, attention will also be devoted to topics of a more 'money & banking' nature, such as: the balance sheet of a central bank, seigniorage, currency use and payment behaviour, etc.

Guest lectures are possible.

Course material
Handbook (Required) : International Finance, Theory and Policy, Krugman, P. R., Obstfeld M. and M. J. Melitz, 12th Edition, Global, Pearson, 9781292417004, 2023
Digital course material (Required) : Slides, Canvas
Additional info

Required reading:  Chapters 1-8 & 10 from Krugman, P. R., Obstfeld M. and M. J. Melitz, International Finance: Theory and Policy, Global Edition, 12, Pearson, 2023 (ISBN 13: 978-1292417004).

Slides and additional material - such as clippings from the financial press (Financial Times, The Economist, etc.), ECB documents, ... - will be made available via the Canvas website of the course.

Learning Outcomes

Algemene competenties

At the end of this course, students should understand the functioning of the foreign exchange market, the money market, exchange rate systems, and monetary (and fiscal) policy in an open economy. They should also be able to apply the theories studied on real-life cases.

Grading

The final grade is composed based on the following categories:
Written Exam determines 100% of the final mark.

Within the Written Exam category, the following assignments need to be completed:

  • Written Exam with a relative weight of 1 which comprises 100% of the final mark.

    Note: Theoretical questions + implementations

Additional info regarding evaluation

The exam will be written, and will be composed of theoretical questions and applications. 

Old exam questions will be solved during the practical sessions.

Allowed unsatisfactory mark
The supplementary Teaching and Examination Regulations of your faculty stipulate whether an allowed unsatisfactory mark for this programme unit is permitted.

Academic context

This offer is part of the following study plans:
Bachelor of Business Engineering: Default track (only offered in Dutch)
Bachelor of Business Engineering: Verkort traject na vooropleiding Professionele bachelor Bedrijfsmanagement met Afstudeerrichting Accountancy-fiscaliteit of Financie- en verzekeringswezen (only offered in Dutch)
Bachelor of Business Engineering: Verkort traject na vooropleiding Professionele bachelor Bedrijfsmanagement met Afstudeerrichting Logistiek Management of Professionele bachelor toegepaste informatica (only offered in Dutch)
Bachelor of Business Engineering: Verkort traject na vooropleiding Professionele bachelor Bedrijfsmanagement met Afstudeerrichting Marketing (only offered in Dutch)
Bachelor of Business Engineering: Verkort traject na vooropleiding Industriële wetenschappen of Ingenieurswetenschappen (only offered in Dutch)
Bachelor of Business Economics: Default track (only offered in Dutch)
Bachelor of Business Economics: Minor Political Science (only offered in Dutch)
Bachelor of Business Economics: Minor Law (only offered in Dutch)
Bachelor of Business Economics: Minor Sociology (only offered in Dutch)
Bachelor of Business Economics: Minor Philosophy and Moral Sciences (only offered in Dutch)
Bachelor of Business Economics: Minor Management and Policy in Health Care (only offered in Dutch)
Bachelor of Business Economics: Verkort traject na vooropleiding Professionele bachelor Bedrijfsmanagement met Afstudeerrichting Accountancy-fiscaliteit of Financie- en verzekeringswezen (only offered in Dutch)
Bachelor of Business Economics: Verkort traject na vooropleiding Professionele bachelor Bedrijfsmanagement met Afstudeerrichting Logistiek Management of Professionele bachelor toegepaste informatica (only offered in Dutch)
Bachelor of Business Economics: Verkort traject na vooropleiding Professionele bachelor Bedrijfsmanagement met Afstudeerrichting Marketing (only offered in Dutch)
Bachelor of Business Economics: Minor Minor Education (only offered in Dutch)
Bachelor of Business Economics: International Business
Preparatory Programme Master of Science in International Business: Default track