GRA 6666 International Macroeconomics and Finance
This course offers an introduction to advanced open-economy macroeconomic and international finance.
The main objective is to develop a coherent framework to analyse macroeconomic variables of interest for international business and finance. Students will acquire analytical skills and applied knowledge about important topics in international macroeconomics. Special attention is paid to the intertemporal approach to the current account, intratemporal trade and the real exchange rate, risky assets and international portfolio diversification, the forward exchange premium and exchange rate overshooting.
Macroeonomics is crucial for any business or finance student. The course enables students to understand macroeconomics developments in an international setting. Students will be able to analyze and discuss global imbalances and current account sustainability, the global saving glut hypothesis, and the twin deficits hypothesis.
Students will get tools to analyze exchange rates. Are currencies over- or undervalued? How do we expect the real exchange to develop as countries get richer? What are the gains from international portfolio diversification? These are important questions for international business and finance.
Ability to critically evaluate popular theories and hypothesis about international macroeconomics and finance. The course enables students for further academic work. It gives an introdution to advanced international macroeconomics.
The course consists of four parts. The first part deals with intertemporal trade and current account dynamics. The second part introduces intratemporal trade and a non-traded good, and studies real exchange rates. The third part covers international finance and explores nominal exchange rates and international asset pricing. The fourth part introduces nominal rigidities and gives an introduction to the topic new open-economy macroeconomics.
Both lectures and exercise seminars are provided.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination when next scheduled course
|100||Yes||3 Hour(s)||Individual||Final written examination with supervision|
|Form of assessment:||Written submission|
|Support materials:|| |
|Comment:||Final written examination with supervision|
|Resit:||Examination when next scheduled course|
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.