Class Global Economics II

This course aims at studying theoretical models of International Monetary Economics with a view of allowing the interpretation of recent and past world economic, as well as actual international economic policy issues. The theory present covers a large spectrum of issues including the determination of nominal and real exchange rates, the international monetary system, macroeconomic policies in open economies (that is, in economies that trade goods and services with the rest of the world), balance of payments, the foreign exchange market, interest party condition and exchange rate regimes. The assessment of economic policy measures is based on domestic and world welfare analysis.

Not applicable

Part I: Introduction Chapter 1. What does International Economics study? (KOM, 1) Chapter 2. The world economy and the COVID-19 exogenous shock ("The Economist" magazine) Part II: Exchange rates and macroeconomics in open economies Chapter 3. National accounts and the balance of payments (KOM, 13) Chapter 4. Exchange rates and the foreign exchange markets (KOM, 14) Chapter 5. Money, interest rates and exchange rates (KOM, 15) Chapter 6. Prices and exchange rates in the long run (KOM, 16) Part III: Open economy macroeconomic policies Chapter 7. Output and exchange rates in the short run (KOM, 17) Chapter 8. The liquidity trap (KOM, 17) Chapter 9. Fixed exchange rates and foreign exchange intervention (KOM, 18) Chapter 10. Optimum currency areas and the euro (KOM, 21)

Analysis of articles from "The Economist".

Livro de texto obrigatório: Krugman, Paul R., Maurice Obstfeld and Marc J. Melitz [2015]. International Economics: Theory and Policy, 12th edition, Global Edition, Pearson (KOM).