Economics of Global Markets

4 Credits.

This course highlights the economic sources of risk in the international arena. Different economies interact by trading goods and services and by exchanging progressively larger capital flows. In the age of globalization, the economic interdependence of countries generates highly novel challenges: exchange rates are not determined solely by capital movements, but also by the evolution of governance in the international monetary system – a system in which the Eurozone, the newest currency union, is emerging as a global and volatile player. The course develops a rigorous analysis of the different arrangements in the international financial system and their effects on trade direction and intensity and international capital flows.