ITU-SUNY B.A. PROGRAM IN ECONOMICS ECO 300 INTERNATIONAL FINANCE Course Syllabus Instructor A.Prof. Ahmet Atıl Aşıcı [email protected] Office Room No: D603 Tel: 2931300 (2033) Office Hours: Tuesday 1400-1630 or upon e-mail appointment Course Description The aim of this course is to develop an understanding of the working of the international finance. International Finance expands students’ knowledge of global economies and markets in three dimensions. First, it delivers insights and tools for analyzing markets in the global economy by building rigorous economic theories and frameworks. Second, it provides tools and concepts for analyzing the performance of national economies by focusing on the economic and political forces that shape production, trade flows, capital flows, interest rates, exchange rates and other variables that define the global economic landscape. Third, it applies the tools of international trade and finance to broaden students’ perspectives on how globalization affects the performance and strategies of nations. The course will be taught in three parts. In the first part, we will cover topics related to exchange rates and open-economy macroeconomics. In the second part, topics are related to the international macroeconomic policy. In the final part, we will critically analyze the roots of the recent global crisis and have a look at the IMF and World Bank supported programs in an historical context. The reading materials for the last part will be provided in advance. Course Requirements Class attendance is mandatory. Students who are absent in more than 4 out of 14 weeks will be given FF, and will not be allowed to take the final exam. Course Evaluation There will be four exams, two quizzes, a midterm and a final. The course grade will consist of quizzes (30%); midterm exam (30%); and final exam (40%). Textbook Krugman, P., Obstfeld, M., Melitz, M. (2011) “International Economics: Theory and Policy”, (9th Edition), Pearson Prentice Hall, New Jersey, USA. Online Appendices: http://wps.aw.com/aw_krgmnobstf_interecon_9/177/45434/11631194.cw/index.html You can purchase either book at Pandora Bookstore (B.Parmakkapı sk. No:3 Beyoğlu; tel 212 245 16 67); or through their web site http://www.pandora.com.tr/ara.aspx?type=2&text=krugman,&yazaradi=&resimli=1&sayfa=4 The old editions of the book are also available in the faculty library and the Mustafa İnan Library. Course Outline Week Topic Reading Assignment 1. Introduction National Income Accounting and the Balance of Payments (Ch. 13) 2. Exchange Rates and the Foreign Exchange Market (Ch. 14) 3. Money, Interest Rates, and Exchange Rates (Ch. 15) 4. Quiz 1; Price Levels and the Exchange Rate in the Long Run (Ch. 16) 5. Output and the Exchange Rate in the Short Run (Ch. 17) 6. Fixed Exchange Rates and Foreign Exchange (Ch. 18) 7. Midterm Review MIDTERM EXAM (exact date to be announced) 8. International Monetary Systems: An Historical Overview ( Ch. 19) 9. Optimum Currency Areas and the European Experience (Ch. 20) 10. Financial Globalization: Opportunity and Crisis (Ch. 21) 11. Developing Countries: Growth, Crisis, and Reform (Ch. 22) 12. Quiz 2; Current Global Crisis and International Financial Architecture 13. Film Screening: Critical Look at the IMF-WB Supported Programs with special emphasis on Turkey 14. Final Overview FINAL EXAM Have a good semester.