F1IP 4005 - International Macroeconomics

The course examines contemporary challenges in international finance and macroeconomics, encompassing topics such as financial globalization, exchange rates, capital flows, and international financial crises. It also explores the renewed prominence of industrial policies and the evolving landscape of globalization, with a particular emphasis on policy-relevant inquiry.

Specifically, the course analyzes key macroeconomic policy issues—including trade wars, global imbalances, and financial and sovereign debt crises—and investigates the complexities of monetary and fiscal policy within an open-economy framework. In addition, it provides students with a comprehensive understanding of exchange rate dynamics and the range of policy responses available to governments, with special attention to the experiences of low- and middle-income countries.

LEARNING OUTCOMES

The course aims to equip students with both empirical and theoretical tools to analyse ongoing international policy discussions. The primary resources cited in the bibliography will include articles published in journals or working paper series such as CEPR, NBER, central banks, and IMF working papers.

Basic knowledge of macroeconomics (monetary and fiscal policy, national accounting, growth…) is assumed to be known by students. No previous course in international macroeconomics and finance is required, and this course is not aimed at those students who already had an advanced course in this field.

For additional reference, the textbook "International Finance: Theory and Policy" by Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz (12th edition, available at the library) will be recommended to review essential concepts.

The course is not very technical but will use some basic mathematics and graphical tools. It will refer to but will not require technical knowledge of econometrics.

Students are expected to have a good understanding of the standard tools in macroeconomics as well as basic techniques in econometrics. A prerequisite is a course in macroeconomics and a course in statistics/econometrics.

The grading breakdown is as follows: 30% for the mid-term written exam, 50% for the final exam, and 20% participation. Final exam: 2 hours in extra class. The examination will comprise various questions that require written responses, including short-course questions and brief essays.