Dr K Jin, STC. S586 and Dr G Ottaviano.

Optional for BSc Accounting and Finance, BSc Econometrics and Mathematical Economics, BSc Economics, BSc Economics and Economic History, BSc Economics with Economic History, BSc Environmental Policy with Economics, BSc Government and Economics, BSc Philosophy and Economics and BSc Social Policy and Economics.

Students should have completed Microeconomic Principles I or II (or equivalent) and Macroeconomic Principles (or equivalent).

International Macroeconomics: The course offers an introduction to international macroeconomic theory and develops the main tools for macroeconomic policy analysis. We start by studying the balance of payments and the causes and consequences of global imbalances, followed by an in-depth study of the determination of exchange rates, money, and prices in open economies. We discuss the costs and benefits of different nominal exchange rate regimes and their sustainability, as well as examine the causes and consequences of debt and default, speculative attacks and financial crises.

International Trade: The course offers an introduction to international trade theory and develops the main tools for trade policy analysis. We start by studying the patterns of trade distinguishing between inter-industry and intra-industry trade flows. We then proceed to an in-depth analysis of the causes and the effects of those flows based on the concepts of absolute and comparative advantage, relative factor abundance and relative factor intensity, increasing returns to scale and imperfect competition. Finally we discuss the gains and losses from trade, their distribution among people and firms, and their implications for the debate on trade liberalization vs. protectionism .

Lectures EC315: 20 MT and LT.

Classes EC315.A: 20 Sessional.

Students will be expected to prepare two pieces of assessed written work during each of the MT and LT.

Exchange Rates and International Finance, 3rd ed, Laurence Copeland; International Economics: Theory and Policy, 8th ed, Paul Krugman, Marc Melitz and Maurice Obstfeld; Foundations of International Macroeconomics, Maurice Obstfeld and Kenneth Rogoff.

A three-hour written examination in the ST.