What This Document Is
This document is a problem set designed for an introductory-level International Monetary Economics course (ECON 182) at the University of California, Berkeley. It’s a challenging assignment intended to reinforce your understanding of core concepts through analytical exercises and critical thinking. This problem set focuses on applying theoretical frameworks to real-world scenarios within international finance.
Why This Document Matters
This assignment is crucial for students enrolled in ECON 182 seeking to solidify their grasp of complex economic principles. Successfully completing this problem set will demonstrate your ability to analyze international monetary issues, interpret economic events, and apply theoretical models to practical situations. It’s best utilized *after* thorough review of related course lectures and readings, and is ideal for students preparing for assessments or aiming for a deeper understanding of the subject matter.
Topics Covered
* Fixed Exchange Rate Systems & Central Bank Intervention
* Sterilization of Foreign Exchange Intervention
* Balance of Payments Crises & Government Policy
* Exchange Rate Regimes and Currency Pegs
* The Impact of Monetary and Fiscal Policy on Exchange Rates
* Floating Exchange Rates and Market Dynamics
* External Debt and Sovereign Risk
What This Document Provides
* A series of analytical problems requiring application of economic models.
* Scenarios based on real-world economic events, such as situations in Venezuela.
* Opportunities to evaluate and discuss economic statements and arguments.
* Exercises designed to test your understanding of the relationship between interest rates, exchange rates, and economic policy.
* A framework for analyzing the challenges faced by countries managing their international monetary affairs.
