Lecture
Vorlesung, SWS:2, VL Number: 34003
Lecturer
Leandro Navarro
Course Description
The course introduces students to basic concepts and topics in international macroeconomics and international financial markets. The topics covered include: i) the balance of payments; ii) global imbalances and the intertemporal approach to the current account; ii) the exchange rates, money and exchange rate regimes; iii) foreign exchange markets; iv) optimum currency areas and the Euro; v) sovereign debt sustainability, debt crises, defaults and sudden stops; vi) currency crises.
The course is targeted to bachelor students.
The course is taught in English. Also the exam will be posed in English.
Table of Contents
- Global Imbalances and the Balance of Payments.
- Determinants of the Current Account.
- The Twin Deficits: Fiscal Deficits and the Current Account. Ricardian Equivalence.
- The Nominal and Real Exchange Rates. The Purchasing Power Parity.
- International Capital Market Integration.
- Monetary Policy and Exchange Rates.
- Inflation and Balance of Payments Crises.
Recommended Textbooks
- [FT] Feenstra, R., & Taylor, A. (2017) International Economics. 4th edition.
- [KOM] Krugman, P., Obstfeld, M., & Melitz, M. (2015). International Economics: Theory and Policy. 10th edition.
- [vM] Van Marrewijk, C., Ottens, D., & Schueller, S. (2012). International economics. 2nd edition.
- [SGUW] Schmitt-Grohé, S., Uribe, M., & Woodford, M. (2022). International Macroeconomics: A Modern Approach. Princeton University Press.
Grading
Grading of the course is based on active participation and a written exam (1h) at the end of the term. If the number of participating students is less than 5, an oral examination may replace the written one. (Students will be informed about the form of examination as soon as possible.)
Registration (and deregistration) for the final exam takes place via the Cmlife system. Cmlife also provides information on current registration periods, time and place of exams.
Exercise Course
An exercise course will support students in handling the different modeling approaches. It is strongly recommended to attend this exercise course in order to pass the exam.
See cmlife for the complete schedule of classes and rooms. See e-learning for further details on the course.