IDENTIFYING DATA 2013_14
Subject (*) INTERNATIONAL ECONOMICS Code 16224203
Study programme
Degree of Economics (2009)
Cycle 1st
Descriptors Credits Type Year Period
6 Optional Second
Language
Anglès
Department Economics
Coordinator
COCA SÁNCHEZ, JAVIER
E-mail javier.coca@urv.cat
Lecturers
COCA SÁNCHEZ, JAVIER
Web
Relevant information The objective of this course is to provide an analytical training in open economy issues from a European perspective. The course aims at analyzing key questions in open economy macroeconomics such as: how is the (nominal) exchange rate of the euro versus other currencies determined? What does it mean for a currency like the euro to be overvalued or undervalued? What are the benefits of fixed exchange rates or a common currency? Why do some fixed exchange rate regimes fail and end in a currency crisis?

Competences
Type A Code Competences Specific
 A1 Explain how the economy works on both the macroeconomic and microeconomic.
Type B Code Competences Transversal
 B5 Teamwork, collaboration and sharing of responsibility
Type C Code Competences Nuclear
 C1 Have an intermediate mastery of a foreign language, preferably English

Learning outcomes
Type A Code Learning outcomes
 A1 Understand the formation of exchange rates, the workings of the currency market, the influence of macroeconomic variables on the currency market and the different models for determining exchange rates.
Explain and analyze the effect of intervening in both fixed and flexible exchange rates in the currency market and the effect of intervening in optimal monetary areas.
Type B Code Learning outcomes
 B5 Identify the group’s objectives as their own.
Participate actively and share information, knowledge and experience.
Take an interest in the importance of the group’s activity.
Take active part in planning the work of the team, and in distributing the tasks and the deadlines.
Type C Code Learning outcomes
 C1 Explain and justify briefly their opinions and projects.
Understand instructions about classes or tasks assigned by the teaching staff.
Understand the general meaning of texts that have non-routine information in a familiar subject area.
Take notes during a class.

Contents
Topic Sub-topic
PART I: INTRODUCTION
UNIT 1. A panoramic vision of international economics issues.
PART II: THE EXCHANGE RATE
UNIT 2. The exchange rate and the exchange rate market
2.1. The exchange rate.
2.2. The euro.
2.3. The foreign exchange market
2.4. Assets’ demand in the foreign exchange market
2.5. Equilibrium in the foreign exchange market
2.6. Covered interest rate parity
UNIT 3. The exchange rate and the monetary market
3.1. Money supply
3.2. Aggregate demand for money
3.3. Equilibrium in the money market
3.4. Money supply and the short run exchange rate
3.5. Money, the price level and the long run exchange rate
PART III: POLICIES, THE EMU AND INTERNATIONAL CRISES.
UNIT 4. Macroeconomic policies and the exchange rate
4.1. Determinants of the aggregate demand
4.2. Aggregate supply in the short run
4.3. Equilibrium in the goods market
4.4. Equilibrium in the assets market
4.5. Short run equilibrium in an open economy
4.6. Monetary and fiscal policies
4.7. The J curve
UNIT 5. Choice of exchange rate regime
5.1. Fixed exchange rates.
5.2. Exchange rate crises.
5.3. Multilateral systems of fixed exchange rates.
5.4. Fixed versus flexible exchange rates.
UNIT 6. The European Monetary Union.
6.1. The European monetary integration process.
6.2. Optimum currency areas and the European Monetary Union (EMU).
6.3. Balance of the first years of the EMU.
6.4. The EMU deficit and debt crisis.

Planning
Methodologies  ::  Tests
  Competences (*) Class hours
Hours outside the classroom
(**) Total hours
Introductory activities
A1
2 0 2
Lecture
A1
C1
36 44 80
Problem solving, classroom exercises
A1
B5
C1
16 18 34
Practicums/Case studies
A7
B5
C1
10 8 18
Personal tuition
2 2 4
 
Extended-answer tests
A1
C1
6 6 12
 
(*) On e-learning, hours of virtual attendance of the teacher.
(**) The information in the planning table is for guidance only and does not take into account the heterogeneity of the students.

Methodologies
Methodologies
  Description
Introductory activities Activities designed to make contact with students, introduce the contents of the subject, the sources of information and the assessment of the course.
Lecture Description of the contents of the subject, raising questions and proposing real life situations to be studied with the analysis presented.
Problem solving, classroom exercises Formulation, analysis, resolution and debate of a problem or exercise related to the topic of the subject.
Practicums/Case studies The students will study the experience of some countries' balance of payments crises through specific bibliography.
Personal tuition An opportunity for the students for further discussion and ressolution of doubts.

Personalized attention
Description
The hours for personalized attention will be announced the first day of class.

Assessment
Methodologies Competences Description Weight        
Practicums/Case studies
A7
B5
C1
The students will write an essay answering specific questions or dealing with specific topics on some particular case studies. 20%
Extended-answer tests
A1
C1
The students will take two exams throughout the course (15% each). They will also take a final exam (50%) on a preannounced date. 30%
50%
Others  
 
Other comments and second call

There will be an exam (second call) with a weight of 100% of the final mark.


Sources of information

Basic Fernández Navarrete, D., Fundamentos Económicos de la Unión Europea., , 2007
J. Tugores, Economia Internacional. Globalización e integración regional., 5th edition, 2002
Krugman, P.; Obstfeld, M., Melitz, M., International Economics: theory and policy, 9th edition,

Complementary P. De Grauwe, Economics of EMU, , 2005

Recommendations


Subjects that it is recommended to have taken before
INTRODUCTION TO MACROECONOMICS/16224005
MACROECONOMY/16224107
(*)The teaching guide is the document in which the URV publishes the information about all its courses. It is a public document and cannot be modified. Only in exceptional cases can it be revised by the competent agent or duly revised so that it is in line with current legislation.