This course is available on the MSc in Economics (2 Year Programme). This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process. For information on controlled access courses, including eligibility, application processes, deadlines, and departmental contact details, please refer to the Controlled Access Courses webpage.

New course for the 2027/28 academic session.

How to apply: This course is intended for MSc Economics, MSc Economics (2 Year Programme), and MSc EME Students. Any external student must have successfully completed EC400 or EC451 in September and/or have approval of the Department of Economics.

Deadline for application: Please apply as soon as possible after the opening of course selection for all courses.

For queries contact: Econ.msc@lse.ac.uk

Co-requisites:

Students must complete EC451 or EC400 either before taking this course or in the same year as this course.

Additional requisites:

In exceptional circumstances, students may take this course without EC400/EC451 provided they meet the necessary requirements and have received approval from the course conveners (via a face-to-face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information (econ.msc@lse.ac.uk) regarding entry to this course.

This course explores key topics of international macroeconomics including: exchange rates, uncovered and covered interest parities; balance of payments, current account and foreign asset positions; global imbalances, twin deficit and savings glut hypotheses; exorbitant privilege and the Triffin dilemma; the international price system, exchange-rate pass-through, the dominant currency paradigm, and endogenous currency choice; sudden stops, currency crises, sovereign debt and defaults; fear of floating and the global financial cycle, as well as trilemma, currency union, FX interventions, and monetary policy in open economies.

20 hours of lectures and 9 hours of seminars in the Winter Term.
1 hour of seminars in the Spring Term.

This course has a reading week in Week 6 of Winter Term.

Two marked assignments.

A full reading list will be distributed at the beginning of the course. A key text is:

• M Obstfeld & K Rogoff, Foundations of International Macroeconomics, MIT Press, 1996.

Exam (100%), duration: 120 minutes, reading time: 15 minutes in the Spring exam period.

This course is IRDAP-enabled, meaning that resit and deferred assessments will take place in August at the end of the academic year.