30287 - MACROECONOMICS AND THE WORLD ECONOMY

At least one course of macroeconomics is strongly recommended. The maths requirement are limited. You will need to know some elementary consumption and production theory, be able to do some elementary differentiation, and know some elementary statistics. I will also assume that you have taken at least one full course specifically on macroeconomics, and hopefully two.

This is a course on international economics. It deals with many aspects of the economic interactions between countries. Unlike the other course I teach, “Monetary and fiscal policy: current challenges”, it is more advanced and more grounded in theory. However, it is not purely theoretical: all topics are illustrated by real life applications and recent examples from different countries. The course also focuses on policies, in particular the implications of different monetary and fiscal policies in open economies. We will be using the textbook "International Economics: Theory and Policy", by Krugman, Melitz and Obstfeld, 12th Edition. We will be usingonly the third and fourth parts, on "Exchange Rates and Open Economy Macroeconomics" and on "International Macroeconomic Policies". I am aware that some of you might have seen this part in other courses at Bocconi but we will cover it more in depth.

13 National Income Accounting and the Balance of Payments

14 Exchange Rates and the Foreign Exchange Market: An Asset Approach

15 Money, Interest Rates, and Exchange Rates

16 Price Levels and the Exchange Rate in the Long Run

17 Output and the Exchange Rate in the Short Run

18 Fixed Exchange Rates and Foreign Exchange Interv

19 International Monetary Systems: A Historical Overview

20 Financial Globalization: Opportunity and Crisis

21 Optimum Currency Areas and the Euro

22 Developing Countries: Growth, Crisis, and Reform

The student will acquire knowledge and understanding of the main issues in international macroeconomics, both the theory and the main policy issues. After acquiring the necessary theoretical notions, the  focus will be on current issues, like (just as examples) the debate on the European Monetary Union or the role of international reserve currencies or the position of emerging market economies in the internationa monetary relations.

The student will be able to better understand the  debate on international macroeconomic issues

• Face-to-face lectures
• Online lectures
• Individual assignments

Face to face lectures only, as dictated by current University policies.

The exam will consists of "True, false or uncertain" questions and of brief essays. More details will be given in class and during the course. Sample exams from the past will be provided. 

I will use the following textbook:

Krugman, Melitz and Obstfeld: "International Economics Theory and Policy" Twelfth Edition, Global Edition, Pearson

For practice and exercises, I will also use the online platform MyEconLab available at https://mlm.pearson.com/global/