Economics II: Open economies & exchange rates

This course will provide an overview about topics in international economics, such as exchange rate regimes, exchange rate crises and macroeconomic policies in the open economy. It will build on the introductory course on Applied Economics taught by Henrik Enderlein.

During the course, you will get an overview about key concepts used in the context of international macroeconomics. After completing this course, you will be able to give answers to 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 costs and benefits of international integration?

We will discuss each topic from a theoretical as well an empirical perspective. As such, you will learn to use theoretical concepts as well as knowledge about empirical evidence to analyze real-world policy problems. Theories and models will have to be learned 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 tutorials classes.

This course is for 1st year MIA and MPP students only.