International macroeconomics

The aim of the course is to provide the knowledge of how an economy functions in a globally integrated world. To this end, the course presents key concepts, relations, and models to understand the functioning of the market for goods and services, international financial markets and the labor market, especially with regard to the determination of output, employment, inflation and the exchange rate. The focus is on the role of fiscal and monetary policy and on the challenges of financial integration.
The main topics addressed are: (i) output and employment determination in an open economy; (ii) inflation dynamics and cyclical output fluctuations; (iii) exchange rate determination; iv) debt sustainability; v) monetary and fiscal stabilization policy.

Students are expected to learn the basic principles of International Macroeconomics. Competence is developed regarding: i) the functioning of the market for goods and services and financial markets; ii) the sources of output fluctuations; iii) exchange rate determination and exchange rate regimes; iv) the effects of financial integration; v) the instruments and objectives of monetary and fiscal policy. Students are expected to develop the basic skills for macroeconomic analysis with special attention to the interpretation of data and information, and the analysis of policy issues and their solutions.