6 ECTS credits
150 h study time

Offer 1 with catalog number 6007644DEW for working students in the 1st semester at a (D) Master - preliminary level.

Semester
1st semester
Enrollment based on exam contract
Possible
Grading method
Grading (scale from 0 to 20)
Can retake in second session
Yes
Taught in
English
Faculty
Faculty of Social Sciences & SolvayBusinessSchool
Department
Applied economics
Educational team
Chrissopighi Braila (course titular)
Activities and contact hours
26 contact hours Lecture
Course Content

The content of this course is the study of the European monetary and fiscal policy. The understanding of the interconnections among currencies is essential to understanding the euro potential.

The introductory part of the course will be devoted to the study of the foreign exchange market. We first survey exchange rate basics: national income accounts and the financial consequences of current account deficits, balance of payments accounts, and the balance sheet of a central bank.

 

The second part will be devoted to building a three-markets model – the DD-AA model (the open economy IS – LM model) – that allows to analyze the impact of government macroeconomic policies (both monetary and fiscal policy) in an open economy and under both floating and fixed exchange rates, such as the Eurozone.

The third part of the course will discuss the institutional frameworks for both Monetary Policy and Fiscal Policy in the EU and the Eurozone. Topics covered will include: the European System of Central the mandate and target of the ECB, the ECB’s two-pillar strategy, the policy instruments of the ECB, a comparison of the ECB with other central banks, the importance of regional differences, fiscal federalism, the interaction between fiscal and monetary policy, etc.

In every new chapter, applications will be integrated in order to blend theory with real world policies, events , and evidence.

Course material
Handbook (Required) : International Economics, Theory and Policy, Feenstra R.C., and A. M. Taylor, 5th Edition, ISBN 978-1-319-38343, 2021
Additional info

Textbook:Feenstra R.C., and A. M. Taylor, International Economics, 5th Edition, 2021 (ISBN 978-1-319-38343-5

Additional material will be made available via the Canvas website of the course.

All slides will be made available via the website.

Learning Outcomes

Algemene competenties

At the end of the course, students should be familiar with the institutional framework of the European System of Central Banks (ESCB) as well as with the mandate and strategy of the European Central Bank (ECB).

Students should understand how monetary policy works in general (under both floating and fixed exchange rates), and more specifically how the monetary policy instruments of the ECB function.

Students should understand the macro-economic impacts of fiscal policy in a currency union. Students should be able to analyse important issues related to the conduct of economic policy in the euro-zone – and in particular the interaction between fiscal and monetary policy.

Students should have a clear understanding of the factors that influence the external value of the euro. Students should understand the financial implications of running a current account deficit, c.q. surplus. Students should understand the difficulties of conducting monetary policy in the presence of regional differences between eurozone member countries.

Finally, and most importantly, students should also be able to apply the theories studied on real-life cases and come up with an informed opinion.

Grading

The final grade is composed based on the following categories:
Written Exam determines 80% of the final mark.
Other Exam determines 20% of the final mark.

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

  • Written Exam with a relative weight of 100 which comprises 80% of the final mark.

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

  • Take home assignments with a relative weight of 100 which comprises 20% of the final mark.

Additional info regarding evaluation

Final written exam for 80% of the grade. Take home assignments or in-class quizzes for 20% of the grade.

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:
Master of European Integration: Track 1: European Economy - Migration and Europe
Master of European Integration: Track 2: European Economy - European External Relations and Security Policy
Master of European Integration: Track 3: European Economy - European Environmental Governance