Description
This module is offered to MA students only.
This module examines macroeconomics in open economies that are linked by trade, capital flows, and exchange rate policies. The module is structured in three main parts. We begin with some basic building blocks of open economy macroeconomics—goods and financial market arbitrage: purchasing power parity (PPP) and uncovered interest rate parity (UIP); Mundell-Fleming. Next, we develop the analytical tools for understanding external adjustment and macroeconomic stabilization in open economies as well as the implications and properties of alternative exchange rate regimes. Finally, we discuss financial sector issues, explaining banking sector stress and the use of derivative instruments. We apply these tools to topics of current policy interest, including how emerging market economies should respond to volatile cross-border capital flows; the European crisis and the future of European integration.
Module deliveries for 2024/25 academic year
Last updated
This module description was last updated on 19th August 2024.
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