INTERNATIONAL TRADE AND ECONOMIC OF DEVELOPMENT - 2

This course is an introduction to the macroeconomics of open economies and international finance. The main objective of the course is to develop simple macroeconomic models of open economies that can be applied to international economic phenomena.
We will examine balance of payments, exchange rate determination, the effect of fiscal and monetary policies under fixed and floating exchange rate regimes, balance of payments crises, international macroeconomic dependence, financial globalization, and the challenges facing developed and developing economies. Recent topics such as the euro area crisis, the persistence of U.S. current account deficits, exchange rate policy, and the creation and overall performance of the euro will be covered.

The students are expected to understand the fundamentals of international economics, and be able to use simple tools to analyze the causes and the consequences of international economic phenomena.

Mandatory priority exam: see https://www.unive.it/pag/32287/
Students are suggested to know basics of macroeconomics

Syllabus

1. Introduction: National Accounting and Balance of Payments.

2. International capital movements

3. Global current account imbalances and the transfer problem

4. The intertemporal approach of the current account

5. Exchange rates and purchasing power parity

6. Flexible exchange rates

7. Fixed exchange rates

8. The International Monetary Fund

9. Crises and responses

10. Monetary Unions

11. Economic growth

12. Development economics

The textbook for the course is International Economics by Kenneth A. Reinert (Il Mulino, 2012), chapters 13-14-15-16-17-18-19-21.

Additional material (including some articles from the Financial Times or Economist and course notes) will be available through the course website. You are advised to check the website often for updates and additional material.

Final Exam (written). Dates:

• Thursday January 18th, 3 pm
• Friday February 2nd, 10 am

Active participation in the course (reading articles, classroom interaction) will be rewarded with a bonus on the final grade.

Lectures and in-person teaching

written