Open Economy Macroeconomic Analysis

This course examines key issues in open economy macroeconomics, including the determinants of exchange rates; causes and consequences of inflation; central banking and international monetary arrangements; the money supply process in open economies; capital flows and global banking; the balance of payments and current account imbalances; national income accounting and the nature of twin deficits; the effectiveness of monetary and fiscal policies in open economies; fixed versus flexible exchange rates; the economics of monetary integration, and the role of the supply side and long-run economic growth. The course is policy-oriented, analyzing case studies and issues relating to the current global economic and financial situation, including the economics of banking crises, the causes and consequences of inflation, the U.S. budget and current account deficits, the value of the dollar, the Japanese economy, Chinese trade and the value of the renminbi, the operation of the European Monetary System and the European Central Bank, the international transmission of economic disturbances, secular stagnation in the U.S., the consequences of AI, the widening of global income inequality, and other related topics.