ECTS
4 credits
Component
Faculty of Science
Description
The aim is to understand the nature of the interrelations between economies and to analyze the conditions for the effectiveness of economic policies in an open economy, taking into account the nature of the exchange rate regime on the one hand and the degree of capital openness on the other.
From this perspective, the balance of payments will be presented and analyzed, and issues of competitiveness and economic attractiveness will be discussed.
It will also look at the impact of financial liberalization on exchange rate volatility, and the options available to different types of economic player for hedging against exchange rate risk.
Finally, the notions of crisis will be presented (financial, foreign exchange). The endogeneity of crises will be highlighted, with an analysis of the last two crises: the 2008 financial crisis on the one hand, and the health crisis on the other.
Objectives
The aim of this course is to acquire basic concepts in economics and deepen the knowledge acquired in this way in the monetary and financial fields.
Necessary prerequisites
L3 Mathematics
Recommended prerequisites: M1 SSD
Knowledge control
This course will be subject to an initial mid-term assessment and a final mid-term exam.
Syllabus
CHAPTER 1 THE ECONOMIC SYSTEM (Economic circuit, economic agents, accounting identities)
- Part 1: European Union and Eurozone
- Part 2: Introduction to macroeconomics
CHAPTER 2 ECONOMIC POLICY
- Part 1: The logic of economic policy design
- Part 2: Reasons for government intervention in the economy
- Part 3: Economic policy objectives
CHAPTER 3 BALANCE OF PAYMENTS
- Part 1: Definitions and registration rules
- Part 2: Significant balance of payments items
- Part 3: The concepts of competitiveness and attractiveness
CHAPTER 4 THEORIES EXPLAINING EXCHANGE RATES
- Part 1: Real approaches to exchange rates
- Part 2: Financial approaches to exchange rates
- Part 3: Exchange rate instability and agents' mimetic behavior
CHAPTER 5 CURRENCY HEDGING
- Part 1: The concept of currency risk
- Part 2: Internal currency hedging techniques
- Part 3: External currency hedging techniques
Further information
Hourly volumes :
CM: 15
TD : 15
TP: 0
Land: 0