International Money and Finance, EC 73-372 Fall 2000

Dr. Gary Quinlivan Phone: 724-537-4597x 2131

Class Time: 1:30-2:50, Tuesday and Thursday in Baker Hall: A53

Office Hours: 3:00-6:00 T-Th

E-mail:

Student Assistant: Shyam Ayengar,

Required textbook:

Bennett T. McCallum, International Monetary Economics, Oxford University Press, 1996.We will be reading numerous current Wall Street Journal articles. I strongly recommend that you obtain a subscription.

Course objectives:

1. To enhance your microeconomic and macroeconomic skills with international applications

2. To prepare you for future application oriented courses in international business and international financial management

3. To analyze current international economic policy issues

Course Focus:

The course will spend the majority of the year on topics dealing with international finance, and international affairs. We will also examine international finance topics that are relevant to contemporary international policy issues .

Course Level:

The course assumes you have had both principles of macroeconomics and microeconomics. Calculus I-III will be used to explain some concepts, but no Calculus is required on exams and a knowledge of Calculus is not essential to do well on this course. Applied mathematical skills are to be developed to the best of your ability.

Chapter Outline

Chapter 1: Introduction

Chapter 2: Exchange Rate Concepts

Chapter 3: Balance of Payments Accounts

Chapter 4: Historical Perspective

Chapter 5: A Basic Model: Building Blocks

Mid-Term: Date to be determined (Chapters 1 to 5)

Chapter 6: Long Run and Short Run Analysis

Chapter 7: Analysis With Fixed Exchange Rates

Chapter 10: Fixed vs. Floating Exchange Rates

Chapter 11: The European Monetary System

Chapter 12: International Policy Cooperation

Final: (as scheduled) Chapters 6 and 7 chapters 10-12

Advanced readings are given at the end of chapters in your text. Additional articles will be handed out in class.

Grade Weight

Midterm 40%

Final 40%

*Class Participation 20%

*Class participation is dependent on class attendance and in class discussions on WSJ.