International Monetary Economics

John Kennes
Assistant Professor
Department of Economics
University of Copenhagen

Studiestræde 6
DK-1455 Copenhagen K
Phone +45 35 32 30 31
Fax +45 35 32 30 00

E-mail john.robert.kennes@econ.ku.dk

 

Course Plan

This course studies issues in international monetary economics and examines the interaction of national economies through international financial markets. We will discuss topics such as the balance of payments, foreign exchange markets, nominal and real exchange rate determination, and international parity conditions. We will also discuss policy including exchange rate management, optimum currency areas, the history of the international monetary system, adjustment mechanisms, and currency crises.

Course outline (pdf file)      Canada?

Textbooks

Baldwin, R. and C. Wyplosz (2004) The Economics of European Integration, McGraw-Hill
Obstfeld, M. and K. Rogoff (1996) Foundations of International Macroeconomics, MIT press

Office Hours

E-mail me at john.kennes@econ.ku.dk for an appointment.

 

Projects

THE CLASS PROJECTS - click here!

 

Handouts

  1. Preliminaries
  2. A monetary history of Europe
  3. The choice of exchange rate regime
  4. The European Monetary System
  5. Optimum currency areas
  6. The European Monetary Union
  7. The Project (Discussion)
  8. Fiscal policy and the stability pack
  9. The financial markets and the Euro
  10. The labor markets and the Euro
  11. Branch or Subsidiary? Capital Regulation of Multinational Banks
    (Special Lecture by Thomas Rønde    )
  12. Asset Markets and International Money (1)
  13. Asset Markets and International Money (2)
  14. Asset Markets and International Money (3)
  15. The Cagan model of money and prices (1)
  16. The Cagan model of money and prices (2)
  17. Money in the Utility Function
  18. Money in the Utility Function (2)
  19. Alternative Models: (i) Cash in Advance, (ii) Search and Money
    Steve Williamson's "Search and Money" (pdf)
  20. Some Applications of the Cagan model and Money in the Utility Function (1)
  21. Mundell-Flemming Dornbusch Model

    22. Kenneth Rogoff's recent lecture on the Dornbusch's Model (html)
  22. (i) Exchange rate overshooting and (ii) time consistency
  23. Credibility: Solutions to the problem of time consistency Practice Problems
  24. Inflation pegging and anti-inflation credibility, Policy coordination Practice Problems
  25. Evidence: The Six Major Puzzles in International Macroeconomics: Is there a common cause? 
  26. Practice problems
  27. As warned!! Classes of May 11 and 13 were cancelled due to birth of my daughter!
  28. The June 3 exam, etc
  29. There is no class on tuesday, May 25. However, I am in my office from 2 til 4 so you are welcome to drop by with questions about the exam, etc. The projects will be handed back on Thursday May 27 in class.
  30. The class is in Bisp 214 today. I will take questions about the exam. I will also hand back the projects. I am pleased with the results. The class did an excellent job!

Evaluation

  1. Final exam: 70%
  2. Project: 30%
    3.