International Finance course notes for exams

Description

Course notes + graphs with my explanations covering Monetary Model (flexible prices) -Flexible/floating exchange rate o Increase in nominal money supply Ms o Increase in domestic real income y o Increase in foreign price level P* -Fixed exchange rate o Increase in nominal money supply Ms o Increase in domestic real income y o Increase in foreign price level P* o Devaluation Mundell-Fleming Model (fixed prices) -Floating Exchange rate o Monetary Expansion o Fiscal Expansion -Fixed Exchange rate o Monetary Expansion o Fiscal Expansion Dornbusch Model (sticky prices) -Monetary Expansion o Long run Effect o Impact Effect o Adjustment Process -Application on oil shock Exchange Rate Changes Explained