AECO 24A00 - Trade and International Finance

This is a course on International Trade and Finance, otherwise generically known as International Economics. This course surveys a variety of topics such as comparative advantage (the Ricardian Model of Trade), specific factors and income distribution, resources and trade (the Hecksher-Ohlin Model), external economies of scale and the international location of production, the foreign exchange market, exchange rate determination, Purchasing Power Parity, the Mundell-Fleming model of output and exchange rate determination under fixed and flexible exchange rates, speculative attacks and the causes and consequences of international financial crises.

Jean-Philippe STIJNS,Moritz PFEIFER

Cours magistral et conférences

English

This course assumes that students read the textbook ahead of each class at a minimum. Students should expect to spend 2-4 hours / week on this type of reading. In addition, students will be expected to read an supplemental book (see below). They should expect to spend around 2 hours per week reading this book. The instructor will provide pointers to web resources on a weekly basis. Students are also expected to keep up with international economic news, especially as they directly relate to the course topics. They should expect to spend around 2 hours per week following the news as it concerns this course.

This course assumes: - knowledge of introductory microeconomic macroeconomic analysis. This requirement is fulfilled by passing AECO14F00 - Core economics or its equivalent. - knowledge of basic calculus. This requirement is fulfilled by passing BMAT14F01/02/03 or an equivalent class. If a student doesn't meet these prerequisites, s/he is requested to discuss the matter with the instructor and with the administration as soon as possible. Campus rules are such that the above requirements are binding. In other words, students who do not have these prerequisites are not allowed by Sciences Po to take this class.

Autumn 2021-2022

One third of the grade will be based on the final exam, two-third of the grade will be based on various assignments completed within the context of sections. The reading and analysis of the additional book will be assessed through bonus questions on the final exam

All lectures will be held in English and all class material (textbook, presentations, supplemental book section assignments and final exams) are all in English. The course is based on plenary lectures (cours magistral) by the instructor and sections (conferences de méthode) by the associate instructor. There will be 12 two-hour lectures and 1 review session. Students are strongly encouraged to ask questions during and outside class. Students are required to attend lectures in accordance to campus rules. The instructor will rely on Moodle to share in PDF format the PowerPoint presentations he uses in class. Assignments and additional material will also be posted on Moodle.