Profile of Liberty with inscribed fillet  By internet archive book images

Profile of Liberty with inscribed fillet By internet archive book images

Issues in International Finance [Fall 2018]

Class meets:
Tuesday and Thursday 1:00PM-2:15PM

Socsci 6104

Professor: Kim J. Ruhl
ruhl2@wisc.edu
Office hours: T/R 2:30PM-3:30PM @ Soc Sci 7444


Announcements

November 7, 2018
Practice exam and solutions are posted. PS #4 solutions are posted. Extra office hours are Wednesday (11/7) 5:30PM-6:30PM (but I may be late) and Thursday (11/8) 9:00AM-10:00AM.

October 19, 2018
Problem set #3 and the needed data workbook are posted under week 7.

October 9, 2018
Exam I solutions posted under week 4.

October 2, 2018
Practice exam and solutions are posted. I will post the PS #2 solutions this afternoon as well as the rest of my marked up slides from class. Extra office hours are Wednesday (10/3) 5:30PM-6:30PM and Thursday (10/4) 9:00AM-10:00AM.

September 27, 2018
Problem set #2 is posted under week 4. It is due at the end of class on Tuesday 10/2. I have consolidated my marked up slides from the first two chapters into two single files. They are posted under week 4. The third consolidated file will be available this weekend. [Although we may still cover a bit of material on Monday.]

September 13, 2018
Problem set #1 is posted under week 2. It is due at the end of class on Tuesday 9/18. Have a good weekend!

September 13, 2018
I added a few slides to the fx deck. They are posted as fx-2 under week 1.

September 11, 2018
Office hours are posted. They are Tuesday and Thursday 2:30PM-3:30PM and by appointment.

September 2, 2018
I look forward to meeting you all soon. The syllabus is posted below under the "weekly schedule" part of the page. We will go over it on Thursday, but you might want to take a look before class.

August 31, 2018
Welcome! This page is a work in progress; more coming soon.

Thematic outline

This is the big-picture. Below this outline is a week-by-week schedule for the course. FT refers to International Economics by Feenstra and Taylor.  


Reading:
FT Chapters 13-15

Exchange rates:
Exchange rate fundamentals
Covered and uncovered interest parity
Purchasing power parity
Money, inflation, and exchange rates
The "trilemma"


Reading:
FT Chapters 16-18

Balance of payments:
Open-economy national income accounting
Unbalanced trade and national wealth
International borrowing and lending
Intertemporal consumption smoothing


Reading:
FT Chapters 19-21

Applications of the theory:
Exchange rate regimes
History of exchange rates
International crises
The Euro


Weekly schedule

This week-by-week schedule will be constantly updated. Some topics may take longer than scheduled (and others may take less) but exam and problem set dates will not change. 


Reading:
Syllabus 
[optional] FT Chapter 12

Slides: introduction

Week 0: September 6
Introduction


Reading:
FT Chapter 13 (Introduction to exchange rates…)
CNBC on the Turkish Lira

Slides: fx [markup] // fx-ppp

Week 1: September 11 & 13
FX fundamentals // Covered interest parity
Uncovered interest parity // FX data


Reading:
FT Chapter 14 (Exchange rates I)

Slides: (T) fx-ppp (above) // fx-money
(R)
fx-money-2

Week 2: September 18 & 20
Purchasing power parity // Real exchange rate
Money and exchange rates in the long run

Due end of class 9/18: PS #1 // Solutions [workbook]


Reading:
FT Chapter 15 (Exchange rates II)

Slides: (T) fx-money-2 (above) // fx-short-run
(R)
fx-short-long-run

Week 3: September 25 & 27
Assets and exchange rates in the short run
The "trilemma"


Practice Exam // Solutions

Slides: fx-review

Consolidated marked up slides:
Ch 13:
fx-introduction
Ch 14:
fx-long-run
Ch 15:
fx-short-run
:
fx-review

Week 4: October 2 & 4
Review // Exam I //
Solutions

Due end of class 10/2: PS #2 // Solutions


Reading:
FOMC projections
FT Ch 16 (National and International Accounts)

Slides: (T) fx-trilemma (R) bop-nipa

Week 5: October 9 & 11
Fixed exchange rates // The trilemma
National income accounts in open economies
International saving/lending // Debt


Reading:
FT Ch 17 (Balance of Payments I)

Slides: (T) bop-nipa (above) // bop-lrbc
(R)
bop-benefits-1

Week 6: October 16 & 18
International saving/lending // Debt
Intertemporal budget constraints


Reading:
FT Ch 18 (Balance of Payments II)

Slides: (T) bop-benefits-1 (above)
(R)
bop-benefits-2 // bop-policy-1

Week 7: October 23 & 25
Consumption smoothing // Savings and investment
Why doens’t capital flow to poor countries?

Due end of class 10/23: PS #3 // bop.xlsx
solutions // solution workbook


Reading:
FT Ch 18 (Balance of Payments II)

Slides:
(T)
bop-policy-2 (R) bop-policy-3

Week 8: October 30 & November 1
IS-LM-FX // Monetary and fiscal policy


Practice Exam // Solutions

Consolidated marked up slides:
Ch 15:
fx-trilemma
Ch 16:
bop-nipa
Ch 17:
bop-benefits
Ch 18:
bop-policy
bop-review

Week 9: November 6 & 8
Review // Exam II //
Solutions

Due end of class 11/6: PS #4 // Solutions


Reading:
FT Ch 18.6 (Balance of Payments II)
FT Ch 19 (Fixed vs. Floating)

Slides: (T) ap-stabilization
(R)
ap-regimes // ap-systems

Week 10: November 13 & 15
Stabilization policy // Zero lower bound
Pros and cons of fixed fx rate regimes


Reading:
FT Ch 19 (Fixed vs. Floating)

Slides: (T) ap-developing // ap-history

Week 11: November 20 (no class 12/22)
Gold standard // Bretton Woods


Reading:
FT Ch 20 (Exchange Rate Crises)

Slides:

Week 12: November 27 & 29
What are fx crises? // How pegs work


Reading:

Slides:

Week 13: December 4 & 6
     // Review

Due end of class 12/4: PS #5


Consolidated marked up slides:

Week 14: December 11
Exam III