256outline22.pdf 

Student_Registration_Handout_chaban77975.pdf 

ECONOMICS 256.3

INTERNATIONAL MONETARY SYSTEMS

Winter, 2022

 

 

 

Instructor: Maxym Chaban

Office: ARTS 814

Phone: (306)-966-6468

Office hours: M 2:30 – 3:30 pm in-person; ARTS 814 (after Jan. 24 unless announced otherwise).

                     W 3:30 – 4:30 pm ZOOM meetings by appointment; send me an email to schedule.

E-mail: maxym.chaban@usask.ca

 

COURSE OBJECTIVES

 

This course will introduce you to a method of analysis of world events from the point of view of international economics. We focus on concepts and their application rather than on rigorous theoretical analysis. At the heart of our analysis is the setup of the international monetary system.  Upon successful completion of the course, students will be able to:

 

• construct different components of the balance of payments and their evolution over time for Canada
• apply national income accounting to the interaction of saving, investment, and net exports
• appraise the issue of global imbalances
• appraise an uncovered interest rate parity for Canada
• evaluate carry trade strategies
• find the effects of interest rates and expectations on exchange rates
• contrast differences between fixed and flexible exchange rate regimes
• discuss the structure of the international gold standard
• explain the collapse of the Bretton Woods system
• understand the factors leading to the global financial crisis in 2008
• evaluate the performance of the international capital market
• articulate the main lessons of the theory of optimum currency areas
• justify the choice of the exchange rate regime for Canada
• assess the factors that make a currency union successful

 

REQUIRED TEXT

 

Krugman, P., Obstfeld, M., and M. Melitz, International Finance, 11^th Edition, Pearson, 2017.

 

MY ECON LAB

 

The use of My Econ Lab is not required, but it is highly recommended. My Econ Lab is included with your purchase of the digital text.

To register with My Econ Lab for this course, follow instructions posted in Canvas.

 

 

 

 

 

 

TOPICS AND RELATED CHAPTERS

 

1. Introduction

            Readings: Chapter 1

 

II. Exchange rates

            Readings: Chapter 2, 3, 4, and 7

• National Income Accounting
• Flexible exchange rates, money, and interest rates
• Fixed exchange rates

 

III. International Monetary Systems

            Readings: Chapters 8, 9, and 10

• Historical overview
• Financial globalization
• Optimum currency areas

 

 

GRADING

 

Your grade for the course will be based on two midterm exams, three assignments and a final exam.  The weights are as follows:

 

Assignments                 15%                  February 9, March 16, April 4    

Mid-session 1                15%                  February 16

Mid-session 2                20%                  March 23

Final exam                    50%                  To be scheduled by the Registrar

 

 

NOTES REGARDING EXAMS

 

A student I.D. will be required for all exams which are planned to be in-person. Make-ups for the midterm exams will not be arranged.  If you miss a mid-session due to extenuating circumstances, the weight of it will be added to the weight of the final exam or to the final exam and the other midterm.  You must present documentation.

 

HEALTH AND SAFETY

 

The course is scheduled to be delivered in-person. However, during the first two weeks of classes all lectures and meetings are to be delivered online as per guidance provided by the University. As we don’t know how the COVID situation would progress during the term, it is possible that the course may switch to the online-delivery form. You would be notified of any changes ahead of time.

 

One of the critical lessons learned in dealing with COVID-19 is knowing that situations can change and we must be flexible and ready to adjust our safety protocols. The university has created a webpage where all up-to-date information around returning to campus is listed. You are responsible for regularly checking the health and safety guidelines https://covid19.usask.ca/about/safety.php#Expectations and knowing what is expected of you throughout the fall term.

 

Students are expected to follow all guidance provided by the University’s Pandemic Recovery/Response Team (PRT), College/Department, professors, lab instructors, TAs, and any other staff member involved in the in-person academic program activities (e.g., Protective Services, Safety Resources). 

 

 

COPYRIGHT

 

Course materials are provided to you based on your registration in a class, and anything created by your professors and instructors is their intellectual property and cannot be shared without written permission. Additionally, other copyright-protected materials created by textbook publishers and authors may be provided to you based on license terms and educational exceptions in the Canadian Copyright Act (see http://laws-lois.justice.gc.ca/eng/acts/C-42/index.html). 

 

Before you copy or distribute others’ copyright-protected materials, please ensure that your use of the materials is covered under the University’s Fair Dealing Copyright Guidelines available at https://library.usask.ca/copyright/general-information/fair-dealing-guidelines.php. For example, posting others’ copyright-protected materials on the open web is not covered under the University’s Fair Dealing Copyright Guidelines, and doing so requires permission from the copyright holder.  

For more information about copyright, please visit https://library.usask.ca/copyright/index.php where there is information for students available at https://library.usask.ca/copyright/students/rights.php, or contact the University’s Copyright Coordinator at mailto:copyright.coordinator@usask.ca or 306-966-8817.

 

 

INTEGRITY DEFINED (from the Office of the University Secretary)  

 

The University of Saskatchewan is committed to the highest standards of academic integrity (https://academic-integrity.usask.ca/).  Academic misconduct is a serious matter and can result in grade penalties, suspension, and expulsion.   

 

Prepare for Integrity  

Students are expected to act with academic integrity.  

• Students are encouraged to complete the Academic Integrity Tutorial to understand the fundamental values of academic integrity and how to be a responsible scholar and member of the USask community (tutorial link: https://libguides.usask.ca/AcademicIntegrityTutorial) .    
• Students can access campus resources that support development of study skills, time and stress management, and ethical writing practices important for maintaining academic integrity and avoiding academic misconduct. 

 

Responses to Misconduct 

Students are expected to be familiar with the academic misconduct regulations (https://governance.usask.ca/student-conduct-appeals/academic-misconduct.php#About).  

• Definitions appear in Section II of the academic misconduct regulations.  
• The academic misconduct regulations apply regardless of type of assessment or presence of supervision during assessment completion.   
• Students are advised to ask for clarification as to the specific expectations and rules for assessments in all of their courses.  
• Students are urged to avoid any behaviour that could result in suspicions of cheating, plagiarism, misrepresentation of facts.  Students should note that posting copyrighted course materials (e.g., notes, questions, assignments or exams) to third party websites or services or other forum or media without permission is an academic or non-academic misconduct offense. 

Non-academic offenses are dealt with under the Standard of Student Conduct in NonAcademic Matters and Regulations and Procedures for Resolution of Complaints and Appeals. 

USE OF CALCULATORS AND ELECTRONIC DEVICES

 

Electronic devices shall not be permitted during examinations, with the exception of calculators without memory or e-mail functions.

 

EXAMINATIONS WITH ACCESS AND EQUITY SERVICES (AES)

 

Students who have disabilities (learning, medical, physical, or mental health) are strongly encouraged to register with Access and Equity Services (AES) if they have not already done so. Students who suspect they may have disabilities should contact AES for advice and referrals at any time. Those students who are registered with AES with mental health disabilities and who anticipate that they may have responses to certain course materials or topics, should discuss course content with their instructors prior to course add / drop dates. In order to access AES programs and supports, students must follow AES policy and procedures. For more information or advice, visit https://students.usask.ca/health/centres/access-equity-services.php, or contact AES at 306-966-7273 or aes@usask.ca.

 

Students registered with AES may request alternative arrangements for mid-term and final examinations. Students must arrange such accommodations through AES by the stated deadlines. Instructors shall provide the examinations for students who are being accommodated by the deadlines established by AES.