This course provides an introduction to the study of Macroeconomics in the context of a globalized world. The goal of the course is to teach you a set of conceptual tools that are useful for understanding open-macroeconomics. We will examine a series of theoretical frameworks designed to answer interesting and important questions, and use them to analyze a series of strategic policies made by countries and firms. There are two main focusses. First, international finance. We will learn how the foreign exchange market operate. Building on tools learned in the core macro course to deepen our understanding of how macroeconomic policies can have an effect over exchange rates, output, the current account and prices. We will learn canonical models of exchange rate determination with a particular focus on open macro policy. We will understand short-term and long-term effects of monetary and fiscal policies. The second focus is international trade. We will first review international trade theories that try to explain: Why countries trade with each other? Do countries gain from trade? Who are the winners and losers? What goods should countries import and export? Can existing trade theories explain the rapid growth of China? We will then focus on the role of trade policy. We will try to learn what are the trade and welfare effects of trade policy? This second part will review recent research that evaluate the effects of the trade war between China and the U.S.
Faculty: Prof. Lorenzo Caliendo
Course Date & Time
Tuesdays and Thursdays, 8:30 - 9:50 a.m. (EST/New Haven time). No classes the week of March 15 - 22.