International Monetary Policy 2400-ICU2IMP
.1. Money and monetary policy in an open economy. Monetary policy and exchange rate regime choice. Policy rules for open economy
2. Mundell-Fleming model and its extensions - domestic monetary policy spillover effects
3. NOEM models - domestic monetary policy spilover effects. Optimal monetary policy rules
4. Monetary policy - international coordination and cooperation (game-theoretic approach).
5. Monetary policy coordination - institutional framework
6. Incomplete and complete monetary union as a form of monetary policy coordination
6. Case study: EMS.
Type of course
Knowledge of major analytical tools for discussing pros and cons of monetary policy coordination and cooperation (incl. monetary union); optimal monetary policy rules for an open economy.
KW01, KW02, KW03, KW04, KW05, KU01, KU02, KU03, KU04, KU05, KU06, KU07, KK01, KK02, KK03
evaluation methods( 4000 characters max)
Activity in the class, Written exam (open questions)
Hamada, 1976, Strategic Analysis of Monetary Interdependence, Journal of Political Economy, 84, 677-700.
Lane, 2001, The New Open Economy Macroeconomics: A Survey, Journal of International Economics, 54, 235-266
Mark, 2001, International Macroeconomics and Finance: Theory and Empirical Methods, Blackwell
Obstfeld, Rogoff, 1995, Exchange Rate Dynamics Redux, Journal of Political Economy, 103,3,624-660
Turnovsky, Basar, d'Orey, 1988, Dynamic Strategic Monetary Policies and Coordination in Interdependent Economies, American Economic Review, 78, 341-361
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
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