This unit is concerned with the operation and role of international financial markets from a macroeconomic standpoint. Topics include national income accounts, the balance of payments accounts, foreign exchange markets, money markets, models of the exchange rate, and monetary and fiscal policy under
This unit is concerned with the operation and role of international financial markets from a macroeconomic standpoint. Topics include national income accounts, the balance of payments accounts, foreign exchange markets, money markets, models of the exchange rate, and monetary and fiscal policy under different exchange rate regimes.
Students are able to:
Explain the national income and balance of payments accounts;
Explain the foreign exchange (FX) market and the concepts of nominal, real, spot, and forward exchange rates
Explain the money market and the theory of money demand and money supply
Explain the theories of exchange-rate determination
Explain the role of monetary and fiscal policy in floating and fixed exchange rate regimes.
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