OAGE 2005 - The Macroeconomics of Emerging Markets

This course examines the macroeconomic dynamics and development strategies of emerging-market economies in the context of an increasingly interconnected global financial system. It provides students with the tools to analyse how capital flows, exchange rate regimes, and financial institutions shape economic outcomes in countries undergoing structural transformation.

Topics include growth convergence, the role of international financial institutions, balance of payments constraints, sovereign debt crises, and macroeconomic stabilisation in open economies. Students will explore the interaction between macroeconomic policy, institutions, and governance. Special emphasis is placed on policy instruments, productivity, and competitiveness.

The course offers a comparative perspective on development models across regions—import substitution followed by market reforms in Latin America, export-led growth in East Asia, post-socialist transition and EU accession as a convergence mechanism in Central and Eastern Europe.

By the end of the course, students will be able to critically assess development challenges, interpret macro-financial risks, and evaluate policy strategies in emerging markets, preparing them for advanced research or professional roles in economic policy, international finance, or development institutions.

Learning Outcomes

By the end of the course, students will be able to:

• Identify and explain the key structural features of emerging-market economies, including stages of development, institutional characteristics, and the diversity of economic trajectories across countries and regions.
• Critically evaluate competing policy approaches to economic growth, macroeconomic stabilisation, financial regulation, and development strategies, with reference to both theoretical frameworks and real-world case studies.
• Analyse the evolving role of emerging economies in the global economic system, assess current policy challenges, and develop well-supported arguments on macroeconomic and development policy issues.

Professional Skills

Through practical applications and case-based analysis, students will acquire key tools and methods used by economists and financial professionals to assess the macroeconomic environment of developing countries. These include techniques for:

• Country risk assessment
• Policy evaluation and scenario analysis
• Investment strategy formulation
• Sovereign credit analysis
• Portfolio risk management in emerging markets

The course prepares students for roles in economic research, international financial institutions, policy advisory, and asset management, particularly those focused on emerging and developing economies.

None

The grading results from one final exam, a group take-home paper and a mid-term test. Final grades will be determined as follows: Group take home + Mid-term exam 50%; Final Exam 50%. Relevant participation may also improve the final grade.

• In Class Presence: 2 hours a week / 24 hours a semester
• Online learning activities: 1 hour a week / 12 hours a semester
• Reading and Preparation for Class: 6 hours a week / 72 hours a semester
• Research and Preparation for Group Work: 2 hours a week / 24 hours a semester
• Research and Writing for Individual Assessments: 1 hours a week / 12 hours a semester