30057 - INTERNATIONAL ECONOMICS
CLEAM - CLEF - BIEMF
Course taught in English
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 of macroeconomics of an open economy to discuss the determinants of exchange rates and the consequences of exchange rate policies for output and prices in the short and in the long run. A brief history of the international monetary system also explains the establishment of the single European currency.
International Trade Theory
- Labor productivity and comparative advantage: the Ricardian model.
- Resources and trade: the Heckscher-Ohlin model.
- International trade and income distribution.
- Economies of scale, imperfect competition and international trade.
- International mobility of factors of production.
- Direct foreign investment and multinational firms.
- The instruments and the effects of trade policy.
- The political economy of trade policy.
International Monetary Economics
- The balance of payments and the foreign exchange market.
- Money, interest rates and prices in the short and in the long run.
- Fixed exchange rate and foreign exchange intervention.
- Fixed vs floating exchange rates.
- The international monetary system since 1870.
- Macroeconomic policy coordination and exchange rates.
- Optimum currency areas and the European single currency.
Written exam. For 2011-2012 students it is possible to take the exam in two midterms. Students of previous years are not admitted to the midterms. To pass the exam the average grade has to be sufficient (at least 18/30) and each part had to be graded at least 15/30. Alternatively, students can choose to take a general exam at the end of the course.
- KRUGMAN-OBSTFELD, International Economics (Global edition), 2011, 9th edition
Microeconomics (M. Kats, H. Rosen, C.A. Bollino, Microeconomics, ed. McGraw-Hill) and Macroeconomics (O. Blanchard, Macroeconomics, ed Il Mulino)