4.0

credits

Average Course Rating

This course expands macroeconomic models to an “open economy” (i.e. international) context. The course starts with the balance of payments, the accounts that fully describe a country’s international economic transactions. Much of the course is devoted to building up our open-economy model, focusing in particular on the determination of exchange rates, interest rates, and output, as well as the study of fixed exchange rates. We will also study how macroeconomic policies work under different assumptions. We close the course by discussing the international monetary system (i.e. as opposed to studying individual economies), with a special focus on historical developments. Prerequisite: Macroeconomics or Accelerated Macroeconomics. MA students may not audit.