Description:

The lecture consists of two parts (open economy macroeconomics and international trade). The first part of the course explores the theoretical frameworks and empirical evidence related to macroeconomic interactions between countries. The course covers topics such as exchange rate determination, balance of payments, international financial markets, monetary and fiscal policies in open economies, and the global economic environment. The second part of the explores theoretical frameworks and empirical evidence related to theory of comparative advantage. The course covers topics such as gains from trade quantification and the distributional effects of trade liberalization.

Learning Targets:

Upon completion of this lecture students are able to:

• understand the fundamental concepts and models necessary to analyse an open economy setting,
• analyze the effects of different forms of globalization,
• evaluate the effectiveness of different macroeconomic policies in an open economy context,
• apply their newly acquired knowledge to current global economic issues.

Literature:

Krugman, P. R., Obstfeld, M., & Melitz M. J. (2021). "International Economics: Theory and Policy," Pearson.

Methods of Assessment:

exam