This course introduces students to the basics of open-economy business cycle theory with a focus on international finance and its applications. The course begins with a canonical general equilibrium model of an open economy and then builds levels of complexity. It aims at covering important topics such as international business-cycle analysis, the role of financial frictions as drivers and transmitters of business cycles and global crises, sovereign default and exchange rate policies. The pedagogical concept of the course implies to confront model-based analysis with the empirical evidence on the major contemporary issues.
Time and location:
Mondays 9h-11h, room 303 building B, Sceaux.
Evaluation:
Written exam.
References:
The textbook for the course is
Open Economy Macroeconomics, by M. Uribe and S. Schmitt-Grohe, Princeton University Press 2017.
See also Foundations of International Macroeconomics, by M. Obstfeld and K. Rogoff, MIT Press, 1996.
The list of additional readings will be built throughout the course (see my slides).
Program and slides:
1- Introduction to open economy macroeconomics. Slides here.