University of Kentucky 3 credits Economics
This course deals with macroeconomic and financial aspects of the open economy. Main subjects include the balance of payments, exchange rate determination, and macroeconomic theory and policy in an open economy. Students are exposed to basic concepts such as purchasing power parity, interest parity, monetary models of the exchange rate, and the Mundell-Fleming model. Current issues for discussion include currency crises, pros and cons of international capital flows, and the choice of exchange rate regime. Prereq: ECO 402 or consent of instructor.
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