International Money and Finance

The details
Colchester Campus
Undergraduate: Level 6
Thursday 03 October 2019
Saturday 14 December 2019
20 September 2019


Requisites for this module
(EC115 or BE300 or IA156 or MA101) and EC201



Key module for

BA 5A84 Financial Economics (Including Placement Year),
BA L111 Financial Economics,
BA L118 Financial Economics (Including Foundation Year),
BA L195 Financial Economics (Including Year Abroad),
BSC 0Q64 Financial Economics (Including Placement Year),
BSC L114 Financial Economics,
BSC L117 Financial Economics (Including Foundation Year),
BSC L194 Financial Economics (Including Year Abroad),
BA 9O47 International Economics (Including Placement Year),
BA L115 International Economics,
BA L160 International Economics (Including Foundation Year),
BA L163 International Economics (Including Year Abroad),
BSC 5H18 International Economics (Including Placement Year),
BSC L116 International Economics,
BSC L161 International Economics (Including Foundation Year),
BSC L162 International Economics (Including Year Abroad)

Module description

The course builds on the macroeconomics taught in the second year. It focuses on open economy macroeconomics, which is discussed at both an intuitive and a technically advanced level (for instance, by solving a system of difference equations). First, foreign exchange markets and their links to prices and interest rates are shown to determine trade and asset flows. Second, various models of (interest and) exchange rate determination are used to explain short and long run effects on the aggregate economy. Third, the Dornbusch model, a model combining both short and long run effects, is studied in more detail.

Module aims

The aim of the module is to familiarize the student with the tools of open economy macroeconomics and show how these tools can be applied in macro-policy issues.

Module learning outcomes

Upon successful completion of the course students will have acquired an appreciation of the role of international currency markets in the determination of economic outcomes. Specifically, they will be familiar with a range of models through which they can interpret movements in the exchange rate and its relationship to other key macroeconomic variables. Students will also be familiar with the effects of monetary and fiscal policy in an international setting. They will be able to critically assess the appropriateness of particular policies as a response to important events within the international monetary system. Students will also have had an opportunity to learn how to approach research articles.

Module information

Compulsory for:
Year 3 students on BA in International Economics, BSc in International Economics, BA in Financial Economics, BSc in Financial Economics

Learning and teaching methods

One 2-hour lecture and one class per week in one term


  • Krugman, Paul R.; Obstfeld, Maurice; Melitz, Marc J. (2018) International economics: theory & policy, New York: Pearson.

The above list is indicative of the essential reading for the course. The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students. Further reading can be obtained from this module's reading list.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Weighting
Coursework EC368 Mid-Term Test
Exam 120 minutes during Summer (Main Period) (Main)

Overall assessment

Coursework Exam
30% 70%


Coursework Exam
30% 70%
Module supervisor and teaching staff
Lectures & classes: Dr Andreas Mueller
For further information, send an email message to



External examiner

Prof Aditya Goenka
The University of Birmingham
Available via Moodle
Of 32 hours, 28 (87.5%) hours available to students:
4 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).


Further information

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