General Economics

The goal will be to understand the nature of the interrelationships between economies and to analyze the conditions under which economic policies are effective in an open economy, taking into account both the nature of the exchange rate regime and the degree of capital account openness.

With this in mind, the balance of payments will be presented and analyzed; issues related to the competitiveness and attractiveness of economies will be discussed.

It will also involve understanding the impacts of financial liberalization on exchange rate volatility and the options available to various types of economic actors for hedging against exchange rate risk.

Finally, the concept of crises will be introduced (financial and currency crises). The endogeneity of crises will be highlighted through an analysis of the two most recent crises: the 2008 financial crisis, on the one hand, and the health crisis, on the other.

The objectives of this course are to introduce students to basic economic concepts and to deepen their understanding of monetary and financial matters

Bachelor's degree in mathematics

 
 
Recommended prerequisites: M1 SSD

This course will include an initial midterm assessment and a final exam.

CHAPTER 1 THE ECONOMIC SYSTEM (Economic cycle, economic agents, accounting identities)

• Part 1: The European Union and the Eurozone
• Part 2: Introduction to Macroeconomics

CHAPTER 2 ECONOMIC POLICY

• Part 1: The Logic Behind Economic Policy Design
• Part 2: Reasons for Government Intervention in the Economy
• Part 3: The Objectives of Economic Policy

CHAPTER 3 THE BALANCE OF PAYMENTS

• Part 1: Definitions and Registration Rules
• Part 2: Major Balances in the Balance of Payments
• Part 3: The Concepts of Competitiveness and Attractiveness

CHAPTER 4 THEORIES EXPLaining EXCHANGE RATES

• Part 1: Real Exchange Rate Approaches
• Part 2: Financial Approaches to Exchange Rates
• Part 3: Exchange Rate Instability and Mimetic Behavior of Economic Agents

CHAPTER 5: HEDGING AGAINST CURRENCY RISK

• Part 1: The Concept of Foreign Exchange Risk
• Part 2: Internal Techniques for Hedging Against Foreign Exchange Risk
• Part 3: External Techniques for Hedging Against Foreign Exchange Risk

Hourly volumes:

            CM: 15

            TD: 15

            TP: 0

            Land: 0