Economics of International Finance Econ. 315

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Presentation transcript:

Economics of International Finance Econ. 315 Chapter 1: Introduction to the World Economy

WHY STUDY OPEN- ECONOMY MACROECONOMICS AND FINANCE ? - Are we involved with international economics in our daily lives? - Does the international trade only reflect the international economics? - How the international finance be a part of the international economics?

WHY STUDY EXCHANGE RATE POLICY? - What is the exchange rate? - When do we need the exchange rate? - How the exchange rate policy is important?

IS THERE ANY LINK BETWEEN EXCHANGE RATE POLICY & GLOBALIZATION? - The relationship between international financial markets & exchange rate

STUDYING THE ECONOMICS INTERNATIONAL FINANCE Impact on level of employment Impact on output Impact on price level Impact on balance of payments Impact on exchange rates

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