british flag.gif (9780 bytes) german flag.gif (6640 bytes) china flag.gif (8299 bytes) cuba flag.gif (7566 bytes) flag.gif (8106 bytes) japanese flag.gif (8167 bytes) flag2.gif (7546 bytes)
spinning yen.gif (10447 bytes) ECON 442/542: International Finance        dollar2.gif (4040 bytes)


Professor:   Dr. Stephanie Kelton
Class:           Meets T/R, 2:00 - 3:15
Office:         202F Mannheim Hall
Office Hrs:  1:00 - 2:00 T/R
Phone:        235-5700
E-mail:       keltons@umkc.edu

Textbook: Krugman, Paul R. and Maurice Obstefeld.  International Economics: Theory and Policy, 7th Ed.   You should avoid paying bookstore prices and purchase the book online at www.amazon.com, www.varsitybooks.com or www.pattysbookstore.com  The ISBN is 0321278844  (Recently, Amazon.com had used copies of this book for about $27.00.)

Course Description: This course introduces students to a framework with which to understand the changing world economy. Our focus will be the "open economy".  We will begin with an analysis of the Balance of Payments and then move to a discussion of exchange rate determination. We will ask questions like: (1) What determines a country's exchange rate?; (2) How does the exchange rate affect the current account?;  (3) What kinds of fiscal and monetary policy options are available under different exchange rate systems?;  (4) What causes currency crises?; and (5) Does the world financial system need to be reformed? In addition to our theoretical focus, we will also consider the real world relevance of our theories, focusing on the exciting issues that dominate current research and policy debates. 

The course presupposes familiarity and comfort  with macroeconomic tools, such as graphical analysis, basic algebra and an understanding of GDP. Students must (at a minimum) have had an Introductory Macroeconomics course (e.g. ECON-201) before taking International Finance.

Schedule of Topics:

Jan 9 --  Intro to Class

Jan 11 --  Krugman (Ch. 12)

Jan 16  --  NO CLASS

Jan 18 --  Krugman (Ch. 13)

Jan 23 --  Krugman (Ch. 13)

Jan 25 --   Krugman (Ch. 14)

Jan 30 -- Krugman (Ch. 14)

Feb 1 --  LAB SESSION

Feb 6 -- Krugman (Ch. 15)

Feb 8 -- Krugman (Ch. 15)

Feb 13 -- Krugman (Ch. 16)

Feb 15 -- Krugman (Ch. 16)

Feb 20 -- LAB SESSION

Feb 22 -- Krugman (Ch. 17)

Feb 27 -- Krugman (Ch. 17)

Mar 1 -- LAB SESSION

Mar 6 -- Exam #1

Mar 8 -- Krugman (Ch. 18)

Mar 13 -- Krugman (Ch.'s 18 & 19)

Mar 15 -- Krugman (Ch.'s 19 & 20)

Mar 20 -- Krugman (Ch's. 20-21)

Mar 22 -- Krugman (Ch.'s 21 & 22)
                  Draft Paper Due in class!!

Mar 27 -- SPRING BREAK

Mar 29  -- SPRING BREAK

April 3  -- LAB SESSION

April 5 --  Review and/or Play Catch-Up

April 10 -- Exam #2

April 12 -- Presentations

April 17 -- Presentations

April 19 -- Presentations

April 24 -- Presentations

April 26 -- A&S Reading Day, No Class

May 3 -- Final Version of the Paper is Due at 10:30 a.m.  No exceptions!


Paper: Each student will write a paper, analyzing the monetary system and the macroeconomic policies in a country of their choice.  You should begin collecting data early, even though you will not be able to start applying the analysis until later in the semester.  A draft of the paper is due March 22. The draft, which is worth 25% of your paper grade, must be turned in at the beginning of class on March 22. You will lose 10 points each day the draft is late.  Once the draft is returned to you, it is your responsibility to hold onto it. You will turn in the graded copy of the draft along with your revised paper on Thursday, May 3. No late papers will be accepted.  Period!  More details about the paper can be found on my website: (http://k.faculty.umkc.edu/keltons/ECON442/Econ442guidelines.htm ) 

A Note on Academic Dishonesty: Academic honesty is fundamental to the activities and principles of a university. All members of the academic community must be confident that each person’s work has been responsibly and honorably acquired, developed, and presented. Any effort to gain an advantage not given to all students is dishonest whether or not the effort is successful. The academic community regards academic dishonesty as an extremely serious matter, with serious consequences that range from probation to expulsion. If a student is caught cheating, the instructor will assign a grade of zero on that assignment, and the instructor will report the incident to the Office of the Provost.  When in doubt about plagiarism, paraphrasing, quoting, or collaboration, consult the course instructor.

 Americans with Disabilities: If you have special needs as addressed by the Americans with Disabilities Act (ADA) and need assistance, please notify the Office of Services for Students with Disabilities, University Center LL 23, (816) 235-5696. Reasonable efforts will be made to accommodate your special needs.

Grading:  Grades will be assigned according to the following scale: 279-300 = A; 270-278 = A-; 261-269 = B+; 249-260 = B; 240 - 248 = B-; 231 - 239 = C+; 219 - 230 = C; 210 - 218 = C-; 201 - 209 = D+; 189 - 200 = D; 180 - 188 = D-; 0 - 179 = F.  

Exam #1 = 100 Points
Exam #2 = 100 Points
Draft Paper = 25 Points
Presentation = 15 Points
Peer Reviews = 10 Points
Final Paper = 50 Points
 

Makeup Exams:   Make-up exams will be given only to students with an excused absence.  Documentation must be provided.  Students who oversleep, forget about a test, aren't prepared, have other exams scheduled on the same day, etc. will not be allowed to take a make-up exam. To prevent those with extra study time from gaining a competitive advantage, the instructor will ensure that make-up exams are sufficiently more difficult that in-class exams.