This course will provide an overview of topics in international economics, such as exchange rate regimes, financial globalisation and macroeconomic policies in the open economy. It will build on the introductory course "Econ I". During the course you will learn key concepts used in the context of international macroeconomics.
After completing this course you will be able to answer questions such as: What determines the choice of the currency regime of a country? How does monetary and fiscal policy influence the exchange rate? What are the benefits and costs of international financial integration? We will discuss each topic from a theoretical as well as an empirical perspective. In the process you will learn to use theoretical concepts and empirical evidence to analyse real-world policy problems.
Theories and models will have to be studied and understood. Applications will only be used as illustrations. However, to deepen the understanding of the theoretical concepts, various exercises and real-world examples will be discussed in weekly tutorial labs.
This course is for 1st year MIA and MPP students only.