Open Economy Macroeconomics

Course Code :2129TEWECP
Study domain:Economic Sciences
Academic year:2018-2019
Semester:1st semester
Contact hours:60
Credits:6
Study load (hours):168
Contract restrictions: Exam contract not possible
Language of instruction:English
Exam period:exam in the 1st semester
Lecturer(s)Roland Winkler

3. Course contents *

This course uses a mix of theoretical, empirical and policy frameworks to analyse problems in international finance and macroeconomics. For example, it covers current account determination, capital flows, international borrowing and lending, interest-rate differentials, and fiscal policy in open economies. The emphasis is on business cycles in open economies. Attention is paid to contemporary issues such as the sustainability of government debt and sovereign default. The course takes a decision-theoretic approach based on microeconomic behaviour, allowing us to identify the frictions that explain empirically observed phenomena. The empirical relevance of the various concepts is kept in mind throughout.

Topics include:

  • Business-cycle facts in developed and emerging market economies
  • Global imbalances
  • Current account sustainability
  • Intertemporal approach to the balance of payments
  • Uncertainty and the current account
  • Twin deficits: fiscal deficits and current account imbalances
  • The open economy real business-cycle model
  • Business cycles in emerging countries
  • Macroeconomics of external debt
  • Sovereign debt and default