Here's the second problem set for International Monetary Economics. There are 4 questions. Questions 1-3 are compulsory, question 4 is extra credit. This is worth 15% of your grade, and due in Monday, 20th of April at the start of class.
Typo: For question 2, equation (2) has all + signs, the i on the deposit side of the eqn should be negative. Cheers for spotting the typo!
Readings & Helpful Papers
Drazen & Helpman, 1988 (updated with the right link, thanks to Desi & Conor, here's a (.pdf)