Open Economy Macroeconomics

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28 Οκτ 2013 (πριν από 3 χρόνια και 9 μήνες)

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Syllabus:
Open Economy Macroeconomics





Zagrebačka škola ekonomije i managementa



1




SYLLABUS

Open Economy Macroeconomics

(
ECTS

8
)



LECTURERS



Lecturers



TBA



Contact

E
-
mail
:


TBA




COURSE DESCRIPTION



This
course
covers selected topics in international macroeconomics and finance. The

first part of the
course will explore the

major sources of data on international macroeconomics, and the

main
stylized facts contained in this data.
T
hen
students will study

models that attempt to explain these

facts, starting with international real business cycle models
, small open economy mode
ls

and then
moving on to models that contain

frictions in either goods or asset markets. The last part of the
cours
e explores monetary issues such
as

the determination of exchange rates and currency crises.


HOURS


Theoretical

classes
, lectures

Seminars
a
nd problems
so
l
v
ing

exercises

30

hours

(1
5 weeks * 2 hours
)


30 hours (15 weeks * 2 hours)

Total

6
0
hours




PREREQUISITES

Students are expected to be familiar with
1st year macro I and macro II
.



GRADING

Your grade will be determined based
an exam com
posed of two parts each worth 30 points, regular
exercises

divided into two sections each worth 15 points and an essay worth 10 points

One should expect the following percentage performance/grade schedule:

90
-
100% = excellent (5),

80
-
89% = very good (4),

Syllabus:
Open Economy Macroeconomics





Zagrebačka škola ekonomije i managementa



2

70
-
79% = good (3),

55
-
69% = pass (2).



P
RELIMINARY COURSE OUTLINE


1)
Intertemporal approach to current account


2)
Capital markets and risk dispersion
, model of a small open economy, closing the model

3
)

Exchange rate in general equilibrium model and f
lexible prices
, model of two large
economies

4
) New open economy
, open economy with nominal rigidities, optimal monetary policy, closed vs.
open economy

5)
Monetary policies and exchange rates in small open economy
, inflation targeting

6
) International
coordination of monetary policies


7
)

Currency crises, speculative attacks, capital controls, RBC model and capital contr
ols

8)
RBC model of a small open economy

9)
Unresolved issues of international correlations, IRBC models, risk dispersion


10)
Possib
le solutions to unresolved issues of IRBC model
, investment adjustment costs,
exogeniously incomplete markets

11)
Endogenously incomplete markets

as a solution to unresolved issue of international
correlations.

12)

International portfolio diversification


13)
International trade, trade costs


14)
Capital markets imperfections, credit cycles


15)
Capital markets imperfections
, credit frictions and capital controls in a small open economy



READING LIST


Obstfeld, M. I Rogoff, K.

(1996)
,

Foundations of Int
ernati
onal Macroeconomics, MIT Press

Mark, N. C.

(2001)
,

International Macroeconomics and Finance, Oxford: Basil Blackwell

T. Sargent i L. Ljungqvist

(2004)
,

Recursive Macroeconomic Theory, MIT Press

Woodford, M.

(2003)
,

Interest and Prices, Princeton Univ
ersity Press

Vegh., C.

(2006)
,

Open economy macroeconomics in developing countries, MIT press