International Macroeconomics

This course deals with the macroeconomics of open economies. The emphasis will be on models appropriate to major countries. Topics covered include: the foreign exchange market, devaluation, and import and export elasticities; the simultaneous determination of the trade balance, national income, the balance of payments, money flows, and interest rates; capital flows in integrated financial markets; monetary and fiscal policy in open economies; international macroeconomic interdependence and policy coordination; supply relationships, inflation, and nominal anchors for monetary policy; the determination of exchange rates in international money markets; and international portfolio diversification.

Also offered by the Economics Department as Economics 1550.