Level of study Third/Final year
Credit value 10
Pre-requisite modules None
Other pre-requisites None
The first section of the course discusses the law of one price, purchasing power parity and covered and uncovered interest parity. The second section considers the Mundell-Fleming model and the Dornbusch overshooting model. The third section is devoted to policy related issues, such as target zones, speculative attacks on fixed exchange rate regimes and the East Asia financial crisis.