The goal of this course is study international macroeconomic issues such as the trade balance, the exchange rate, national output, and inflation.
Course Description: We discuss key international macroeconomic variables then develop theories about how and why these variables change over time and differ across countries. The first part of the course focuses on foreign exchange markets, data and theories of exchange rate determination in the short run and the long run. The second part of the course covers the balance of payments, including the trade balance and how the balance of payments is related to a country’s long run economic growth and short-run economic fluctuations. The final part of the course will cover applied topics in international macroeconomics. Topics include exchange rate regimes, crises, and monetary union (the euro).
Units: 4
Prerequisite(s): Economics 1A, 1B, 100 or (Agricultural and Resource Economics 100A and 100B), course 101, or consent of instructor