Professor Eran Yashiv

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 Environment and Sustainable Development with Economics, BSc in Environmental Policy with Economics, BSc in Geography with Economics, BSc in International Social and Public Policy and Economics, BSc in Mathematics and Economics, BSc in Mathematics with Economics, BSc in Philosophy and Economics, BSc in Philosophy, Politics and Economics and BSc in Politics and Economics. This course is available with permission as an outside option to students on other programmes where regulations permit and to General Course students.

Students should have completed Macroeconomics II (EC2B1) or Macroeconomic Principles (EC210), or Macroeconomics I (EC1B3) combined with either Macroeconomics II (EC2B3) or Macro-Finance (FM201), or equivalent.

This 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.

This course is delivered through a combination of classes and lectures totalling a minimum of 25 hours in the Autumn Term (AT). 15 hours of lectures and 10 hours of classes in the Autumn Term.

Students are expected to complete a problem set weekly, two of which will be marked, and feedback provided.

Students can consult the textbook:

• Paul Krugman, Marc Melitz and Maurice Obstfeld; International Economics: Theory and Policy, 12th edition, Pearson. (Earlier editions are also relevant).

Exam (100%, duration: 2 hours, reading time: 15 minutes) in the spring exam period.