Jeffrey Frankel Photo

Jeffrey Frankel

James W. Harpel Professor of Capital Formation and Growth
Office Address
79 John F. Kennedy St. Littauer Bldg 217

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 price levels; capital flows and our increasingly integrated financial markets; the transfer problem; monetary and fiscal policy in open economies; international macroeconomic interdependence and policy coordination; supply relationships and nominal anchors for monetary policy; the determination of exchange rates in international money markets; and international portfolio diversification.

Prerequisites: Microeconomics at the level of API-101 and macroeconomics at the level of API-121. May not be taken for credit with Ec 1530.

Please note that the exam for this course will now be held from 9:00am-12:00pm on Wednesday 5/8.

Knowledge of international trade theory and econometric techniques is also desirable, but not essential. Students must be very comfortable with algebra.