This course will provide students with models that can be used to analyse issues in international monetary economics. The course introduces students to so-called global imbalances and the basic stylized facts about current accounts with cross-section and the time-series of selected countries such as the US and China. Issues of current account sustainability will also be addressed. The underlying intertemporal modelling framework will be applied to the current account and be used to understand the macroeconomic effects of external shocks, such as changes in terms of trade and the world interest rate. Students will also learn about the effects that endowment and productivity shocks have on consumption, saving, investment, the trade balance, and the current account. These effects will be analysed for small and for large open economies. Students will learn about the real exchange rate and use the intertemporal modelling framework to analyse its determinants. Towards the end of the course, students will learn about capital market integration and the effects of capital controls. The last lecture concludes the course with a discussion of the most recent World Economic Outlook that is produced semi-annually by the International Monetary Fund. In the tutorials: students will learn about stabilisation policies in open economies. Using basic open-economy Keynesian models, where prices are assumed to be sticky, students will analyse the short-run effects of monetary and fiscal policies.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
- demonstrate an understanding of the core theoretical models used by economists in the field of international monetary economics;
- apply these models to contemporary issues in international monetary economics;
- explain and demonstrate an understanding of some of the associated empirical implications and policy issues in international monetary economics;
- critically evaluate and analyse newspaper and magazine articles covering events about international monetary economics in the world.
- analyse contemporary developments in the world economy about capital flows across countries and formulate policy recommendations;
- Understand the implications that capital flows have on the private sector. Based on this understanding, formulate investment strategies for large firms.
Indicative Assessment
- Assessment will consist of a Final Exam, mid-semester exam(s), quizzes, assignment or some combination thereof. See the Class Summary for details. (100) [LO 1,2,3,4,5,6]
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Workload
130 hours in total over the semester consisting of lectures, tutorials and private study time.
Inherent Requirements
Not applicable
Requisite and Incompatibility
Prescribed Texts
See Class Summary
Fees
Tuition fees are for the academic year indicated at the top of the page.
Commonwealth Support (CSP) Students
If you have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). More information about your student contribution amount for each course at Fees.
- Student Contribution Band:
- 34
- Unit value:
- 6 units
If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee | Description |
|---|---|---|
| 2024 | $4680 | Standard Rate |
| 2024 | $3720 |
Grandfathered Rate*
*continuing students in nominated programs only. See fee website |
- International fee paying students
| Year | Fee |
|---|---|
| 2024 | $6000 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
