Dr Keyu Jin 32L.1.17 and Dr Swati Dhingra 32L.2.31

This course is available on the BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Economics and Economic History, BSc in Economics with Economic History, BSc in Environmental Policy with Economics, BSc in Government and Economics, BSc in International Social and Public Policy and Economics, BSc in Philosophy and Economics, BSc in Philosophy, Politics and Economics, BSc in Politics and Economics and BSc in Social Policy and Economics. This course is available as an outside option to students on other programmes where regulations permit and to General Course students.

Students should have completed Microeconomic Principles I (EC201) or Microeconomic Principles II (EC202) or equivalent and Macroeconomic Principles (EC210) or equivalent.

International Macroeconomics: This section of the course offers an introduction to international macroeconomic theory and develops the main tools for macroeconomic policy analysis. We start by studying the balance of payments and the causes and consequences of global imbalances, followed by an in-depth study of the determination of exchange rates, money, and prices in open economies. We discuss the costs and benefits of different nominal exchange rate regimes and their sustainability, as well as examine the causes and consequences of debt and default, speculative attacks and financial crises.

International Trade: This section of the course offers an introduction to international trade theory and develops the main tools for trade policy analysis. We start by studying the patterns of trade distinguishing between inter-industry and intra-industry trade flows. We then proceed to an in-depth analysis of the causes and the effects of those flows based on the concepts of absolute and comparative advantage, relative factor abundance and relative factor intensity, increasing returns to scale and imperfect competition. Finally we discuss the gains and losses from trade, their distribution among people and firms, and their implications for the debate on trade liberalization vs. protectionism .

15 hours of lectures and 10 hours of classes in the MT. 15 hours of lectures and 10 hours of classes in the LT.

Students will be expected to complete a problem set weekly, and two of these each term will be collected at random for marking and feedback.

Paul Krugman, Marc Melitz and Maurice Obstfeld; International Economics: Theory and Policy, 10th ed.

Assessment path 1
Exam (100%, duration: 3 hours, reading time: 15 minutes) in the summer exam period.

Assessment path 2
Exam (50%, duration: 1 hour and 30 minutes, reading time: 10 minutes) in the summer exam period.
Essay (50%, 1500 words) in the LT Week 5.

The short essay will be on a topic covered during the course of the MT and can be on a topic of students' own choosing based on the material covered in the MT. The essay components are as follows:

1. Maximum word length: 1500 words
2. Four parts: Abstract, Introduction, Content, Conclusion.
3. Abstract: Include an abstract of 100 words or fewer.
4. Introduction: The essay would consist of an introduction which clearly states the question being studied, the motivation for examining the question and the contribution that the essay plans to makes to the study of this question (relative to other work in the area).
5. Content: Having specified the question, the essay would contain theoretical and/or empirical evidence for the answer being proposed. The answer consists of an explanation and a maximum of four exhibits. An exhibit refers to a graph, table, figure, proposition or set of equations (limit to under three in each exhibit) that contains the theoretical or empirical evidence for the answer.
6. Conclusion: The essay would end with a concluding paragraph that states the answer to the question or broader implications of it.