Explain the long- and short-term movements of exchange rates, how their equilibrium levels are determined, and learn the relationship between them and basic macroeconomic variables.
Interpret the relationship between exchange rates and foreign trade.
Mode of Delivery
Face to face
Prerequisites
Yes(TBF111 TBF112)
Recommended Optional Programme Components
None
Course Description
In this course, the relationship between basic macroeconomic variables such as exchange rate, interest rates, money (policy) and national income in an open economy is explained from a theoretical perspective.
Course Contents
WEEK
TOPICS
1st Week
National income accounting and balance of payments
2nd Week
National income accounting and balance of payments
3rd Week
Exchange rate
4th Week
Exchange market
5th Week
Money, interest rate and exchange rates
6th Week
The general level of prices and exchange rates in the long run
7th Week
The general level of prices and exchange rates in the long run
8th Week
Midterm exam
9th Week
International Monetary System
10th Week
International Monetary System
11th Week
Optimum currency zones and the EU
12th Week
Developing countries: growth and development
13th Week
Developing countries: crisis and reform
14th Week
Review
Recommended or Required Reading
Krugman, Obstfeld ve Melitz (2016), Uluslararası İktisat: Teori ve Politika, Palme Yayıncılık.
Planned Learning Activities and Teaching Methods
Lecture
Assessment Methods and Criteria
Quantity
Percentage (%)
Mid-term
1
40
Total(%)
40
Contribution of In-term Studies to Overall Grade(%)
40
Contribution of Final Examination to Overall Grade(%)
