This course provides a comprehensive review of both traditional and modern theories of exchange rate determination, with a focus on critically evaluating their relevance in current international contexts. It explores the role of price, money, and interest rate fundamentals in shaping real and nominal exchange rates, as well as the impact of risk in the foreign exchange market. Students will also analyze approaches to modeling the real equilibrium exchange rate and examine the causes and implications of exchange rate volatility on global economic stability. The course delves into real-world international macroeconomic challenges, such as financial crises, currency crises, and sovereign debt crises, assessing why these crises are transmitted across countries and their broader policy implications. Additionally, the course evaluates the dynamics of monetary unions, particularly in Europe, and considers potential applications in other regions. Finally, the course also focuses on building teamwork skills through collaborative projects, such as portfolios, co-creation or video presentations.

A 2-hour lecture each week for 10 weeks.

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This course aims to provide a comprehensive understanding of exchange rate determination by critically examining both traditional and contemporary theories. It investigates the causes and consequences of exchange rate volatility and its implications for global economic stability. The course explores how exchange rates behave under different monetary regimes, identifying key factors that drive their dynamics. It also addresses major international macroeconomic challenges-such as currency crises, sovereign debt crises, and financial crises-and considers strategies for managing these issues using insights from various economic frameworks. Collaborative skills are developed through team-based portfolio or video presentation projects.

By the end of the course students will be able to:

1. Critically evaluate traditional and contemporary theories of exchange rate determination, assessing their relevance in current international contexts. 

2. Analyze the causes and implications of exchange rate volatility and its impact on global economic stability. 

3. Compare and contrast the behavior of exchange rates across different monetary regimes, identifying key factors that influence their dynamics.

4. Examine and assess real-world international macroeconomic challenges, such as currency crises, sovereign debt crises, and financial crises, and their broader implications on global economies.

5. Synthesize knowledge from various economic frameworks to propose solutions or strategies for managing exchange rate volatility and real-world international macroeconomic challenges.

6. Develop teamwork skills while working on an oral video presentation.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.