Global business environment


Lecturer(s) :

Lambertini Luisa




This course provides students with the framework and decision tools needed for taking financial decisions and evaluating investment opportunities in a global economy. We use an integrated model of exchange rate and output determination to analyze the effects of monetary and fiscal policies.


  1. National Income Accounting and the Balance of Payments
  2. Exchange Rates and the Foreign Exchange Market: An Asset Approach
  3. Money, Interest Rates and Exchange Rates; Price Level and the Exchange Rate in the Long Run
  4. Output and the Exchange Rate in the Short Run with Fixed and Flexible Exchange Rates
  5. Fixed Exchange Rates and the Dynamics of Currency Crises
  6. Financial Crises and the Choice of Exchange Rate Regime
  7. Currency Unions and the European Experience
  8. The Global Capital Market


International finance, open-economy macroeconomics

Learning Outcomes

By the end of the course, the student must be able to:

Transversal skills

Teaching methods

The course is organized in lectures, class discussions and presentation of case studies. Lectures will provide the theoretical knowledge needed to understand global economic events. Students will have the opportunity to test their knowledge by doing weekly problem sets, which will be graded. Lectures will include several class discussions of recent economic events, which will allow students to apply the theory learned in class. Students will be divided in groups to work on a case study, which they will present in class. The topic of the case study varies from year to year and it will be chosen a few weeks into the course. The case study and its presentation will be part of the final grade.

Expected student activities


Problem sets will begiven out each Monday and need to be returned to the instructor at the beginning of class the following Monday. The solution to the problem set will be available on the class web page. No late problem set will be accepted. All questions in the problem set will be graded.

While working with other students on problem sets is allowed, each student must complete his/her problem set. I strongly recommend you to do the problem sets: this is the best way to learn the material and do well in the course.


Students will be divided in groups. Each group will prepare and present a case study that is typically related to current economic events. For example, last year the main topic was the Eurozone crisis and each group was assigned a specific topic related to it. The topic of your case study will be announced a few weeks into the course.

The case studies will be presented in class and followed by general discussion. You will be graded on the quality of the material, the presentation, and the contribution to the class discussion of other groups' case studies.

Assessment methods

30 % Problem sets, class participation and case study

35 % Midterm Exam (closed book)

35 % Final Exam (closed book)


Office hours Yes
Assistants Yes
Forum No



Textbook: International Economics; Theory and Policy (10th edition) by Paul Krugman, Maurice Obstfeld and Marc Melitz, Chapters 13 to 22.

NBER Working paper

Dow Jones (on WRDS)


Ressources en bibliothèque

Slides: The slides will be available (after class) on the class web site.

Problem Sets: Problem sets and their solutions will be available on the class website. Problem sets will ask you to work with and apply the concepts learned in class.

Readings: You may be asked to read additional material (papers, newspapers' articles, case studies, etc.). This additional reading will be the basis for class discussion, so you need to read it before class. All additional reading will be available on the class website.

Moodle Link

In the programs

Reference week

      Exercise, TP
      Project, other


  • Autumn semester
  • Winter sessions
  • Spring semester
  • Summer sessions
  • Lecture in French
  • Lecture in English
  • Lecture in German