Monetary Economics

1. Exchange Rates and International Monetary Systems
   1. Foreign Exchange Markets
      1. Definition and function
      2. Participants in the market
         1. Central banks
         2. Commercial banks
         3. Hedge funds
         4. Corporations and multinational companies
         5. Retail traders and investors
      3. Types of foreign exchange transactions
         1. Spot transactions
         2. Forward transactions
         3. Swaps and derivatives
      4. Currency pairs and exchange rate quotations
      5. Impact of geopolitical events and economic data
   2. Fixed vs. Floating Exchange Rates
      1. Characteristics of fixed exchange rate systems
         1. Pegged exchange regimes
         2. Currency boards
      2. Characteristics of floating exchange rate systems
         1. Managed float
         2. Free float
      3. Advantages and disadvantages of each system
      4. Impact on economic stability and trade balances
      5. Real-world examples and current trends
      6. Transition from fixed to floating exchange rates
   3. Purchasing Power Parity and Exchange Rate Theories
      1. Definition and concept of Purchasing Power Parity (PPP)
         1. Absolute PPP
         2. Relative PPP
      2. Law of one price
      3. Deviations from PPP and causes
      4. Other exchange rate theories
         1. Interest rate parity
         2. Balance of payments theory
         3. Monetary models
         4. Portfolio balance approach
   4. Balance of Payments
      1. Definition and components
         1. Current account
         2. Capital account
         3. Financial account
         4. Errors and omissions
      2. Importance of balance of payments analysis
      3. Surpluses and deficits
      4. Financing balance of payments deficits
      5. Implications for exchange rates
   5. International Monetary Policy Coordination
      1. Importance and challenges of coordination
      2. Role of international organizations
         1. International Monetary Fund (IMF)
         2. World Bank
         3. G7 and G20
      3. Historical examples of policy coordination
      4. Monetary unions and their impact
         1. Eurozone and European Central Bank (ECB)
      5. Challenges in multi-currency systems
   6. Exchange Rate Risk Management
      1. Types of exchange rate risk
         1. Transaction risk
         2. Translation risk
         3. Economic risk
      2. Hedging strategies
         1. Forward contracts
         2. Futures contracts
         3. Options and currency swaps
         4. Natural hedging
      3. Role of financial derivatives in managing risk
   7. Impact of Exchange Rates on Global Trade
      1. Influence on export competitiveness
      2. Currency manipulation and trade disputes
      3. Exchange rate pass-through to prices
      4. Role in foreign direct investment decisions
      5. Cross-border mergers and acquisitions
   8. Historical and Contemporary Exchange Rate Regimes
      1. Gold standard and its collapse
      2. Bretton Woods system
      3. Modern currency systems
      4. Crisis events and their impact on exchange regimes
   9. Future of Exchange Rates and International Monetary Systems
      1. Digital currencies and cryptocurrencies
      2. Central bank digital currencies (CBDCs)
      3. Impact of technology on currency exchange
      4. Prospects for new global monetary arrangements
      5. Economic integration and currency union prospects