5115 - INTERNATIONAL ECONOMICS (REAL AND MONETARY)

The first part of the course provides the tools necessary for an analysis of the determinants, patterns and effects of international trade and of government trade policies. The second part builds on the concepts introduced by the course on Macroeconomics, to provide students with a deep understanding of the macroeconomic functioning of a system which is "open" and integrated with the rest of the world.

  1. International Trade Theory

•  Labor productivity and comparative advantage: the Ricardian model.
•  Immobile factors and income distribution.
•  Resources and trade: the Heckscher-Ohlin model.
•  Economies of scale and international trade.
•  Monopolistic competition and trade.
•  International labor mobility.
•  International borrowing and lending.
•  Direct foreign investment and multinational firms.
•  The instruments of trade policy.
•  The political economy of trade policy.
•  International negotiations and trade policy.

•  Trade policy in developing countries.

2. International Monetary Economics

• IS-LM macroeconomics and the exchange rate without capital mobility
• The open IS-LM model with capital mobility
• The flex-price monetary model
• The Dornbusch model and overshooting
• The Branson-type portfolio model 
• The history of the International Monetary System: the gold standar, Bretton-Woods and the folating exchange rates in the seventies
• European monetary and exchange rate policies: from the EMS to the euro
• Measuring international capital mobility and international financial integration
• Facts and issues in European financial integration

First part

• P. KRUGMAN, M. OBSTFELD,  International Economics: Theory and Policy, Scott, Foresman and Company, 5th ed., 1999.

Second Part

• F. BRUNI, Lectures in International Monetary Economics (material available on the web site)

For further and continuously updated information consult the  IEP web site or contact  S.I.D.  - Servizio Informazioni Didattica - Via Gobbi, 5 - 3rd floor.

Written examination.
Students may take the exam in two written parts: a mid-term exam and a final exam to be taken within the end of the summer session. In this case the total grade will be the average of the grades of the mid-term and the final.