Reference no: EM13316090

This course to build up a theoretical framework on international monetary economics and apply it for a better understanding of both the historical and current international monetary system and recent policy implications.

We analyze recent international economic environment-international linkages, higher openness to trade, fewer capital flow controls, different degrees of foreign exchange rate regimes. Then we go back in time and briefly study how the international monetary system has evolved to current times. In the second part of the course, we start developing some theoretical framework on international linkages and the monetary system.

Initially, we start with balance of payments account: current and capital accounts. Then we discuss exchange rates and the foreign exchange market, tackling questions such as what determines exchange rates? How are money and interest rates related to exchange rates? What are the interactions of economic variables such as price level or output with exchange rates? In the third part of the course, we discuss exchange rate regimes, including transition from bretton woods system to WTO and the effects of national policies on the foreign exchange market. In the last part of the course, we study the nature of economic and financial crises in the last four decades.

INTERNATIONAL ECONOMICS

When introduced to economics in senior school I was told that it interestingly qualified as a subject of both Arts and Science.

Though I was a science student I chose economics(honours) for my graduation. Since then I realized that economics was an area defined by precise rules, principles and axioms and yet there was tremendous scope for self-expression in the form of interpretation and analysis. This facet of economics intrigued me very much and I decided to pursue further studies in Economics.

During my graduation I happened to study international economics. It took all my interest to a new level. It captured my attention every time, whether it was the transition from traditional trade theory to modern trade theoryor Bretton woods system to WTO or fixed exchange rate system to flexible exchange rate system.

After completing the Master's program I was very eager to see how one might use economics to tackle real life problems, where simplified models, I want to delve deeper into the subject to be able to carry out independent research and analysis, hence my decision to join the Ph.D. program at DSE.

International Economics has a very wider scope. It deals with almost all spheres regarding many policy issues such as negotiations over mutual reductions in tariffs, formation and preservation of customs unions, establishment of cartels in the case of internationally traded goods.

International Finance examines the effects of financial flows between countries. It looks at the effect of such flows on the balance of payments and the exchange rate. It also evaluates the implications of different exchange rate regimes and considers the appropriate role of international institutions such as the International Monetary Fund (IMF).I as a student of Ph.d would like ponder upon this concept.

The areas like "Regionalism & Multilateralism" hold their own attraction. It should be interesting to analyse the trade diversion effects of Preferential Trading Agreements and also their impact on multilateral institutions. The strategic trading that takes place in foreign exchange markets and the variety of mechanisms that have been used for foreign exchange trade, especially in developing countries, are intriguing.

INDIA'S PERSPECTIVE

Although India has steadily opened up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive. This leads some to see India as a ‘rapid globalizer' while others still see it as a ‘highly protectionist' economy.I would certainly find it interesting to know what makes India a rapid globalizer and a protectionist at the same time.

Till the early 1990s, India was a closed economy: average tariffs exceeded 200 percent, quantitative restrictions on imports were extensive, and there were stringent restrictions on foreign investment. The country began to cautiously reform in the 1990s, liberalizing only under conditions of extreme necessity.

Since that time, trade reforms have produced remarkable results. India's trade to GDP ratio has increased from 15 percent to 35 percent of GDP between 1990 and 2005, and the economy is now among the fastest growing in the world.

This proves that liberalisation of international trade has advantages.

However there are some economists who believe that international trade has its disadvantages also.

I would certainly like to understand the rationale behind the concept of advantages and disadvantages of international trade .

Conclusion :

During my economics studies I understood that there are reasons towhyinternational economics is important however I was always eager to practically experience the theory in the real world. Its fascinating that everyday every government makes a policy decision and the entire global network is affected by that somehow. It would be a like a life of purpose to me if I can equip myself with some advanced tools and develop my analytical and research capabilities to formulate international policies. I want to get an excellent command over international economics to be able to confront ever changing economic policies with exact models of economic theories and also for empirical verification of other models. I want to be an academic economist. I have cleared the National Eligibility test / Junior research fellowship conducted by the University Grants Commission of India, which makes me eligible to teach an undergraduate course in economics in any Indian university and pursue research at the same time.

I certainly want to be a part of DSE due to the above reason.I feel the help and guidance that can be provided to me by the distinguished faculty of your school will be incomparable. I am sure if I am given the opportunity to study at your institution that attracts some of the best students from all over the world I will be able to achieve my goal.