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The value of daily foreign exchange trade is more than one
hundred times the value of annual international trade transactions (goods and
services). International financial markets generate capital flows that
determine exchange rate movements and affect key macroeconomic variables in
open economies, such as production, inflation and unemployment. The course
addresses these topics by looking at empirical evidence and theoretical
developments.
· Determine the link between variable in the
financial markets, such as exchange rates, capital flows and economic fundamentals
· Analyze how macroeconomic policies should be
implemented when national financial markets are open