Learning outcomes

At the end of the course students will be able to demonstrate:

  •  ability to audit a monetary union project;
  •  understanding of the theory of optimal currency areas;
  •  understanding the challenges and opportunities of economic and financial globalization;

At the end of the course students will be able to:

  • communicate clearly and persuasively in written (and oral) and in graphical form
  • manage a project
  • collaborate within a team
  • demonstrate critical thinking

Goals

This course aims to explain how macroeconomic and financial disturbances are propagated across countries in a globalized economy. These instabilities could emerge because of either policy actions of governments or as outcomes of market forces. What are the main channels for the propagation of shocks across countries? What are the implications of macro-financial linkages for the synchronization of international business cycles? What is the effectiveness of national stabilization policies and the coordination of policies at the international level?

 

Content

Global macro-financial linkages and policies

Table of contents

  1. Economic Cost of MU (Basic Theory of Optimum Currency Areas)
  2. Theory of Optimum Currency Areas: A Critique
  3. Empirical Analysis on Asymmetric Shocks
  4. Benefits of Monetary Union
  5. Macro-Financial Linkages in an Era of Globalization
  6. Understanding Changes in International Business Cycles
  7. International co-movement puzzle in open-economy macroeconomic models
  8. Why Doesn't Capital Flow from Rich to Poor Countries?
  9. Macroeconomic impacts of sudden stops



 

Exercices

Lab sessions of about 8 hours are offered to apply the theory discussed in class. The software matlab is used during these lab sessions

Teaching methods

[Cours donné en anglais] I use lectures and cooperative learning

Assessment method

Grades include three parts:

  • Project: 40%
  • Individual class participation and continuous evaluations: 40%;
  • Individual oral evaluation: 20%

 

Sources, references and any support material

  1. De Grauwe, P. (2022): Economics of Monetary Union, Eight Edition, Oxford University Press
  2. Feenstra, Robert C. and Alan M. Taylor: (2021) International Macroeconomics. Macmillan, Fifth Edition
  3. Journal Articles

Language of instruction

English