|Course Code :||3200PSWIEO|
|Study domain:||Political Sciences|
|Semester:||Semester: 1st semester|
|Study load (hours):||168|
|Contract restrictions: ||Exam contract not possible|
|Language of instruction :||Dutch|
|Exam period:||exam in the 1st semester|
At the start of this course the student should have acquired the following competences:
A passive knowledge of :Specific prerequisites for this course:
2. Learning outcomes
The course aims to provide students without a prior economic background with the necessary introductory knowledge to be able
- to understand the theoretical concepts used in international economics, both in the real (trade) as well as the monetary/financial sphere, and apply them to relevant current international economic problems and events;
- to understand different types of economic policy interventions in this domain, and apply this knowledge to relevant current interventions;
- to describe the rationale, as well as concrete functioning of some key international economic organisations in this domain, and apply this knowledge to relevant current events.
3. Course contents
The introductory sessions (Danny Cassimon) frames the topic within the concept of global public goods, and explains why supranational interventions, and international organisations, are needed in this area. This session also provides a conceptual introduction to a country’s Balance of Payments (BOP), as the basic framework where cross-border flows of goods, services and money are recorded.
The next sessions then discuss basic concepts, theories, policies and (international) institutions ultimately determining these flows recorded in the BOP. One part (German Calfat) discusses the real (trade) issues, the other part (Danny Cassimon) discusses monetary (capital flows) issues.
1) International trade theory, policy and institutions (German Calfat).
The sessions of this subdivision aim at introducing the students to some fundamental economic principles and empirical evidence regarding international trade and trade policy. The coverage of trade theories and policies is meant to provide arguments to understand the notion of free trade (and its generated controversy), as a keystone, in the construction of important institutions in the world economy such as the WTO and Regional Integration Agreements.
2) International Economics of the International Monetary System (Danny Cassimon):
The remaining sessions deal with some basic concepts, as well as the theory and practice of the functioning of the international monetary system, and cross-border capital movements. First, it describes the key characteristics of a ‘good’ international monetary system and defines and measures cross-border transactions. It then discusses the traditional case in favor of free capital mobility in theory, and then confronts this with current practice and the empirical debate, leading to an extended theoretical framework that matches better with observed realities. Furthermore, we describe basic concepts related to the exchange rate, and describe basic interlinkages (‘parity relations’) between key international financial variables, such as exchange rates, and interest rates. We also discuss different exchange rate systems, and highlight the concept of ‘speculation’. Next, we provide an overview of different types of (international) financial crises, and apply this to a few of the recent international financial crises, including the recent Euro-crisis. The final sessions discuss the role of the ‘International Financial Institutions’ such as the IMF and World Bank.
A more detailed description of the contents of each session will be presented to students during the first session of the course, and is also available on at Blackboard.
4. Teaching method
Class contact teaching: Lectures
5. Assessment method and criteria
Examination: Written without oral presentationClosed book
6. Study material
The basic textbook for this course is
James Gerber (2011), International Economics, Fifth Edition, Pearson Education, Inc.
For some sessions, additional study material is made available through Blackboard.
A detailed overview of required reading per session is presented to students during the first session of the course, and is also available on Blackboard.
The following study material can be studied on a voluntary basis:
For students that wish to consult a similar textbook in Dutch, we suggest
L.Cuyvers, R. Embrechts, G.Rayp & T. Dejonghe (2011), Internationale economie, (vijfde uitgave), Antwerpen-Apeldoorn: Garant.
7. Contact information
Germán Calfat - IOB- (email@example.com), S building, Lange Sint-Anna straat 7, room S 121
Danny Cassimon - IOB- (firstname.lastname@example.org), S building, Lange Sint-Anna straat 7, room S 122
(+)last update: 30/10/2012 13:55 danny.cassimon