INTERNATIONAL MACROECONOMICS

Prerequisites: ECON UN3211 and ECON UN3213. Econ GU4505 is an

elective in the economics major. The course develops models for the

analysis of the determinants of international capital flows, trade

imbalances, and exchange rates. The models are then used as the basis

for the discussion of topics such as Global Imbalances, Uncertainty and

the Current Account, The Global Saving Glut, Purchasing Power Parity,

Sudden Stops, Real Exchange Rates and Productivity, Covered Interest

Rate Parity, Uncovered Interest Rate Parity, Borrowing Externalities and

Optimal Capital Controls, Overborrowing,  Macroeconomic Adjustment under

Flexible and Fixed Exchange Rates,  Twin Deficits, and Balance of

Payment Crises.