This course deals with economic activity in an open economy. We begin with basic concepts, including the balance of payments, exchange rates, and the impact of macroeconomic policies. We then examine the choices countries make in their choice of capital account and exchange rate regimes. Finally, we study currency and financial crises, including the role of the IMF.
One of the goals of the course is to learn how to read research papers. We will read recently published papers and working papers and discuss how their authors present their evidence.
Prerequisites: The prerequisites for the course are ECON 202 and 203. It will not be possible to take either of these courses concurrently with this course, as the theoretical models and empirical analyses we will discuss require familiarity with the material taught in ECON 202 and 203.