Weber State University
Department of Economics

Syllabus ECON 3120

International Finance and Monetary Systems

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MWF 10:30am - 11:20am                                                                             Dr. Doris Geide-Stevenson
Fall 2009                                                                                                       Office: WB 232
WB 103                                                                                                         Phone: 626-7634 (voice mail) 
                                                                                                                      626-6066 (Dept.)

E-Mail: DGSTEVEN@Weber.edu                                                         

Homepage: http://weber.edu/dgsteven

International Finance class homepage: http://weber.edu/dgsteven/IntFin/IntFin.asp

Office Hours: MW 11:30am - 12:00pm, T 10am - 12:30pm, F 9:30am - 10:30am

Course Description: This course consists of two blocks of content. The first block centers around the functioning of the foreign exchange market and explanations of exchange rate determination. We will study the basic economic models developed to explain exchange rate movements and compare how well these model perform empirically.  The second block centers around the role of exchange rates in the context of open-economy macroeconomic models. Throughout the course you will follow economic data relevant to the subject material covered for a country that will be assigned at the beginning of the course.

Prerequisites: ECON SS2010, ECON SS2020

Course Objectives: Students should gain a good grasp of the subject matter of international money and finance across its four main dimensions: theory, evidence, policy and institutions with a special focus on analyzing current events in various countries. 

Required Text: 

Feenstra, Robert C., Taylor, Alan M, International Macroeconomics, Worth Publishers, 2008.

• Version 1: Textbook bundled with access to Aplia available from the bookstore (at a price of about $140)
• Version 2: Aplia bundled with the online text available online (at a price of $80)

Krugman, Paul, The Return of Recession Economics, W.W. Norton, 2009, New York. (this book will be on reserve and I have copy that can be checked out from the department)

Lewis, Michael, Wall Street on the Tundra, Vanity Fair, April 2009.

Other required readings, e.g. newspaper articles, will be distributed in class or posted on e-reserve with the WSU library.

Special Accommodations: If you have special needs, it is your responsibility to contact me during the first week of classes. Services for Students with Disabilities (SSD) in room 181 of the Student Services Center (phone: 626-6413) will coordinate reasonable accommodations.

Grading: 

Each exam will consist of a number of multiple choice questions and an essay part where you are asked to apply  theoretical concepts to specific problems and current events covered in similar form in the textbook, in lectures or as an APLIA assignment. Some problems on the exams will be directly based on material covered in homework assignments. These assignments will give you a chance to apply and practice newly learned concepts and are instrumental in preparing you for the exams. In reviewing material it is essential that you cover both, a complete set of lecture notes and the readings assigned in class (see this syllabus for a tentative reading list). Not all the readings will be covered in your lecture notes, however you are responsible for all assigned material.

Assignments are available online at Aplia.com. Assignments need to be completed by the deadline. Aplia deadlines are firm which means you will not be able to access and submit the assignment after the deadline has passed. In order to get credit for your APLIA homework you need to get a score of at least 70%. Your homework grade will be higher the more APLIA assignments you complete at the minimum grade level. I will drop your lowest Aplia score. Occasionally I might ask you to turn in part of your assignment in class. Anything due for a specific class period needs to be turned in at the beginning of class. I will not accept any late work. If you have to work from home you may e-mail me assignments that are due in class. Should you anticipate not being able to complete an assignment it is your responsibility to get in touch with me to make alternative arrangements.

This grading scheme is designed to encourage and reward consistent effort throughout the semester.

Project Description - Over the course of the semester you will work on an extensive economic research paper. Your paper will focus on a current policy question in the area of global macroeconomics. In the first weeks of class we will prepare a list of topics to choose from. 

Policy on Cheating: The work you turn in must be your own. If you are caught cheating during a quiz or final exam you will fail this course. While I encourage cooperation and study groups, simply copying the assignment from another student is cheating. Note that in this case both parties are guilty of cheating. For a more detailed description of what constitutes cheating please refer to the WSU honorcode.

Make-up Exams: It is your responsibility to attend the exams scheduled below. Should you be unable to attend the exams on the dates indicated below, you have to let the instructor know in advance of the exam (see voice mail, e-mail address and department phone number above) to be eligible for a make-up exam. The instructor reserves the right to schedule any make-up and determine the form of the exam.

Fall 2009 Emergency Procedures for ECON 3120

The Centers for Disease Control (CDC) and the Utah Public Health Department are anticipating a resurgence of the H1N1 flu this fall. This could result in significant disruptions to our class. The guidelines for this class are:

• If you are ill, stay home. The virus comes on suddenly; if you become ill (fever, chills etc.) while at school, go home. Exposing others to the virus can potentially result in serious complications and even death in high-risk individuals. See the WSU website at http:\\weber.edu/flu for specific recommendations. Always wash your hands and cover your mouth if you cough.

• Notify me immediately if you are sick. Arrangement for the completion of work may be made.

In the event that the professor becomes ill, all class communication, lessons, assignments etc. will be communicated electronically. I will use the announcement feature in APLIA and send Groupwise e-mails to announce any changes. At that time I will let you know how we will proceed. That may include use of Blackboard, more intensive use of APLIA and/or e-mails from me that accompany lesson material.

It is advised that you sign up for Code Purple. Code purple is an emergency notification system that gives WSU teh ability to communicate health and safety information as well as weather related closures information quickly - by text, voice and/or e-mail message.

Tentative Course Outline

Please prepare by reading the relevant chapters in advance. After class, compare in how far lecture notes and readings 'match up'. Remember to ask questions about the material and to take the time required to work out connections. An average student should plan on spending about 2 hours outside the classroom for each lecture. This should be sufficient to pass the class with a C. To achieve a better grade, you have to put in some extra time.

The chapters refer to the Feenstra/Taylor textbook. Additional readings, such as articles on current events will be distributed and/or announced in class.

Aug. 24   Introduction, Chapter 1

Aug. 26   Chapter 1

Aug. 28   Chapter 2

Aug. 31   Chapter 2

Sept. 2    Chapter 2

Sept. 4    Chapter 2

Sept. 7   Labor Day

Sept. 9    Chapter 11 - 2

Sept. 11   Chapter 11-2

Sept. 14   Chapter 3

Sept. 16   Chapter 3

Sept. 18   Chapter 3

Sept. 21   Chapter 3

Midterm Exam I: September 18, 12:00pm - Tuesday, Sept. 22 at the Student Services Testing Center

Sept. 23   Chapter 4

Sept. 25   Chapter 4

Sept. 28   Chapter 4

Sept. 30   Chapter 5

Oct. 2      Chapter 5

Oct. 5      Chapter 5

Oct. 7      Chapter 5

Oct. 9      Chapter 6

Oct. 12    Chapter 6

Oct. 14    Chapter 6

Oct. 16   Fall Break

Oct. 19    Review

Midterm Exam II: Thursday Oct. 14 - Tuesday, Oct. 20, Student Services Testing Center

Oct. 21    Chapter 7

Oct. 23    Chapter 7

Oct. 26    Chapter 7

Oct. 28    Chapter 7

Oct. 30    Chapter 8

Nov. 2     Chapter 8

Nov. 4     Chapter 8

Nov. 6     Chapter 8

Nov. 9     Chapter 9

Nov. 11   Chapter 9

Nov. 13   Chapter 9

Nov. 16   Chapter 9

Nov. 18   Chapter 9

Nov. 20    Chapter 11

Nov. 23   Chapter 11

Nov. 25    Topics and Presentations

Nov. 27   Thanksgiving

Nov. 30/Dec. 2/Dec. 4   Topics and Presentations

Final Exam: Wednesday Dec. 9, 2009  10:30am - 11:20am.