Important

• starting from 23.03, the lectures & tutorials will only be held on-line; according to the regular schedule.
• NEW GRADING RULES (changed due to the COVID-19 pandemic)
• Textbooks
• Syllabus

• 17.02&24.02 The classical model of the small & big open economy (revised)
  • Readings: Mankiw, chapter "The Open Economy"
• 02.03&09.03 Balance of payments
  • Readings: Krugman&Obstfeld&Melitz, chapter "National Income Accounting and the Balance of Payments"
• 23.03 Exchange rates in the long run, part 1. The monetary approach
  • Readings: Krugman&Obstfeld&Melitz, chapter "Price levels and the Exchange Rate in the Long Run" (without the last part - "Beyond PPP...")
• 30.03 Exchange rates in the long run, part 2. The full model.
  • Readings: Krugman&Obstfeld&Melitz, the second part of the chapter "Price levels and the Exchange Rate in the Long Run" (start from the part "Beyond PPP...")
• 06.04 Interest rate parity .Exchange rates in the short run
  • Readings: Krugman&Obstfeld&Melitz, "Money, Interest Rates and Exchange Rates"
• 20.04 Equilibrium on the currency market - elasticity approach. The Marshall-Lerner condition
  • Readings: Caves, Frankel & Jones;
• 27.04 & 04.05 The Mundell-Fleming Model, part 1. The Flexible Exchange Rate Regime.
  • Readings: Caves, Frankel & Jones; "The Mundell - Fleming Model with Partial International Capital Mobility" and "Fiscal and Monetary Policy Under Modern Financial Market Conditions"
• 11.05 The Mundell-Fleming Model, part 2. The Fixed Exchange Rate Regime.
  • Readings: Caves, Frankel & Jones; "The Mundell - Fleming Model with Partial International Capital Mobility" & "Fiscal and Monetary Policy Under Modern Financial Market Conditions" & Krugman&Obstfeld&Melitz, the first part of a chapter "Fixed Exchange Rates and Foreign Exchange Intervention"
• 18.05 Fixed or Floating? The choice of an exchange rate regime.
  • 18.05 A note on the impact of macro policies on current and financial account and Fixed or Floating? The choice of an exchange rate regime.
  • Readings: Kurgman&Obstfeld&Melitz "Macroeconomic Policy and Coordination Under Floating Exchange Rates" (K&O&M are relying on different graphs than we do, so don't worry about the graphical analysis, just try to follow the text)
• 25.05 Part 1 From the Mundell-Fleming to the long run.
• 25.05 Part 2 Currency crises.
  • Readings: Krugman&Obstfeld&Melitz, the part "Balance of Payments Crises and Capital Flight" of the chapter "Fixed Exchange Rates and Foreign Exchange Intervention" & lecture notes
• 01.06 & 08.06 OCA.
  
  
  • Sample questions from old exams

  Additional reading

  • The dollar and international capital flows in the COVID-19 crisis
  • In Which Exchange Rate Models Do Forecasters Trust ?
  • On the carry trade phenomenon.
  • Capital Controls Measures. A New Database.