INTERNATIONAL MACROECONOMICS

The course aims at providing students with strong knowledge about the way the recent economic theory treats crucial questions related to financial and economic globalisation and about the difficulties encountered in interpreting the real world. The program is divided into a common program (parts A and B) and a differentiated program (parts C and D). All students must prepare parts A and B for the exam. Students not attending the lessons must prepare part C and exclude part D. Attending students exclude part C and actively participate to the workshops to learn how to collect and analyse data on macroeconomic variables (part D). The articles of part (C) of the program will still be presented and discussed during the lessons, even though attending students (provided that they are truly present during the lessons) do not have to prepare them for the final exam.

PROGRAM

Texts:

1. [G] G. Gandolfo, International Finance and Open-Economy Macroeconomics, Springer, 2001

2. [L] K.K. LEWIS, Puzzles in international financial markets, in G. Grossman and K. Rogoff (Eds.), Handbook of International Economics, Vol. III, 1995, pp.1914-1971 – paragraph 1.1 (pp.1916-1923)

3. [GS] B. Greenwald and J.E. Stiglitz, A modest proposal for international monetary reform, in S.Griffith-Jones, J.A. Ocampo, J.E. Stiglitz (Eds.), Time for a visible hand, Oxford University Press, 2010, pp. 314-344.

4. [RS] S. Radelet and J. Sachs, The East Asian financial crisis: diagnosis, remedies, prospects, Brooking Papers on Economic Activity, 1998, pp.1-78.

COMMON PROGRAM

A) The basics

1. The balance of payments accounting and derived identities (G: 5, 6)

2. The Foreign Exchange Market (G:2 excluding 2.7, 15.2)

3. PPP, UIP, CIP, efficiency (G:15.1 excluding 15.1.1, 4, L: 1.1)

B) Financial Activities, macroeconomic equilibrium and exchange rate

1. Monetary approach to balance of payment and exchange rate (G:12.1, 12.2, 12.3, 15.3.1)

2. Stock-Flow approach (G: 13.1,13.2, 15.3.3)

3. Growth in an open economy (G:14)

4. Intertemporal decisions and balance of payment (G: 18.2)

DIFFERENCIATED PROGRAM

Attending students actively participate to the workshops to learn how to collect and analyse data on macroeconomic variables (part D). Students attending the lessons do not have to prepare the articles of part C for the final exam if they prepare the workshop.

C) For student that do not attend the lessons: Analysis of crises and problems

1. The Asian crisis of 1997-98 (RS)

2. The current monetary non-system and global imbalances (GS)

D) For students attending the lessons: Workshops with data

1. Collecting data on the computer room

2. Descriptive analysis of data to produce reports and graphs.

SLIDES ON Lewis (1995) – lesson of 12/3/2012

SLIDES ON Radelet and Sachs (1998) – lesson of 3/5/2012