International Macroeconomics – MEP

Course introduction

This course places students in a decision-making context to gain a thorough understanding of international affairs. It considers the role of monetary and fiscal policy in a globalized content and equips students with an array of insightful case studies. The capacity to set and maintain economic policies that deliver a stable macroeconomic environment is more important than ever, and students will gain confidence in their ability to contribute to this field.

As countries attempt to deliver on their sustainability objectives and manage disruptive technologies such as artificial intelligence, familiarity with the basics of macroeconomic policy will become increasingly useful.

Course assessment

• 40% group project (instructions here)
• 60% final exam (on campus and invigilated)

I have also provided links to relevant chapters of the course textbook, “Economics: A Complete Guide for Business“.

Session 1: Growth theory

• Background reading: Solow, R. M., 1956,. A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65–94
• Lecture handouts
• More resources
• Stoves Handout, March 2020
• Textbook reference: Chapter 12.1

Session 2: Money

• Lecture handouts
• More resources
• Textbook reference: Chapter 7.3

Session 3: Banking crises

• Background reading: Diamond, D.W., and Dybvig, P.H., 1983, “Bank Runs, Deposit Insurance, and Liquidity”, Journal of Political Economy, 91(3):401-419
• Lecture handouts
• More resources

Session 4: Monetary policy

• Case: “The Euro in Crisis: Decision Time at the European Central Bank” Harvard Business School case no. 9-711-049
• Case preparation: The ECB During the Crisis, July 2021
• Lecture handouts
• More resources
• Textbook reference: Chapter 7.1, 7.5 and Chapter 8.1, 8.2

Session 5: Fiscal policy

• Lecture handouts
• More resources
• Textbook reference: Chapter 9.2, 9.3, 9.4

Session 6: Dynamic AD-AS model

• More resources

Session 7: International economics

• Case: Josko Joras (A), December 2012
• Instructions: Complete exercises 1,2, and 3
• Textbook reference: Chapter 10.1, 10.2
• Activity: Dollar Dominance

Session 8: Currency crises

• Case: “Currency Crises” Harvard Business School case no. 9-799-088 (£)
• Discussion question: Which countries are on the verge of a currency crisis?
• Textbook reference: Chapter 8.3 and Chapter 10.4

Session 9: Debt crises

• Case: Blustein, Paul “And the Money Kept Rolling In” Public Affairs, 2005 (pp.39-60) (£)
• Discussion question: As of July 1998 should the IMF suspend their program in Argentina, or continue their support?

Session 10: Presentations

Note:

Cases marked with a pound sign (£) are either available via Blackboard or through the library.

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