International Monetary Policy and Banking

2 Credits.

This course offers an analytical framework to study the functioning of the economy as a whole. Such a study involves analyzing the behavior of several markets and how their interactions affect income, prices, employment, exchange rates, and international financial flows. In addition, the course develops the accounting frameworks to understand and monitor international transactions and central banks’ operations. The course’s framework helps answering various questions of interest: How can monetary policy counteract periods of low unemployment? How are interest and exchange rates determined? What are the consequences for prices, employment, and output of an expansionary monetary policy?