Full course description
The main goal of this course is to apply the concepts analysed in "Macroeconomics". While the classic literature from twenty and thirty years ago can be admired for articulating and attempting to formalize a number of central policy issues, its limitations are many. The classic approach lacks the micro foundations needed for internal consistency, it fails to deal with dynamics in any coherent way, and its vision of capital market integration may generously be described as narrow. Perhaps most importantly, the older literature simply doesn’t deal sensibly with many questions that are central to today’s policy world, such as current accounts, government budget deficits, speculative attacks, and the implications of the expanding global markets for securities and derivatives. A limited number of problems in international finances will be investigated within a systematic modern approach. New approaches will be also developed as well as new methodologies to investigate the new topics in international finance.
This course is an advanced macroeconomic course. The students are expected to apply the models learnt in Macroeconomics in order to write a publishable empirical paper in international macroeconomics and finance.
- Obstfeld, Maurice & Kenneth Rogoff, Foundations of International Macroeconomics, Cambridge, MA: The MIT Press, 1996.