General economics

The aim will be to understand the nature of the interrelationships 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.

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

It will also be necessary to understand the impact of financial liberalization on exchange rate volatility and the options available to different types of economic actors to hedge against exchange rate risk.

Finally, the concepts of crisis will be presented (financial, currency). The endogenous nature 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.

The objectives of this course are to acquire basic concepts in economics and to deepen the knowledge thus acquired in the monetary and financial fields.

L3 mathematics

 
 
Recommended prerequisites: M1 SSD

This course will be assessed through a midterm exam and a final exam.

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 behind economic policy design
• Part 2: Reasons for government intervention in the economy
• Part 3: Economic policy objectives

CHAPTER 3 THE BALANCE OF PAYMENTS

• Part 1: Definitions and registration rules
• Part 2: Significant balances in the balance of payments
• Part 3: The concepts of competitiveness and attractiveness

CHAPTER 4 EXPLANATORY THEORIES OF EXCHANGE RATES

• Part 1: Real exchange rate approaches
• Part 2: Financial Approaches to Exchange Rates
• Part 3: Exchange rate instability and mimetic behavior of agents

CHAPTER 5 HEDGING AGAINST CURRENCY RISK

• Part 1: The concept of currency risk
• Part 2: Internal techniques for hedging currency risk
• Part 3: External techniques for hedging against currency risk

Hourly volumes:

            CM: 15

            TD: 15

            TP: 0

            Land: 0