International Macroeconomics
This course
will introduce students to the international macroeconomics. In particular, the
course will cover the building blocks of open-economy macroeconomics focusing
on: (i) the intertemporal trade and the current account balance: (ii) the
dynamics of small open economies; (iii) the real exchange rate and the terms of
trade; (iv) the uncertainty and international financial markets; (v) the money
and exchange rates under flexible prices.
Textbook:
Maurice
Obstfeld and Kenneth Rogoff, Foundations of International Macroeconomics
(MIT Press, 1996).
Topics:
·
first week: Intertemporal trade and the current account
(Ch.1 and Ch.2). Lecture Slides:
o
A
small two period economy
o
A
two-region world economy
o
A
stochastic current account model
·
second week: the real exchange rate and the
terms of trade (Ch.4). Lecture Slides
o
International
price level and the real exchange rate
o
The
price of nontraded goods
o
The
terms of trade in a dynamic ricardian model
·
third week:
uncertainty and international financial markets (Ch.5). Lecture Slides
o
Trade
across random States of Nature
·
forth week:
uncertainty and international financial markets (Ch.5). Lecture Slides
o
International
portfolio diversification
Exercises: