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Econ 758: Advanced International Economics
Current Semester: Fall 2009
Section 01:
Meets M from 6:30pm - 9:00pm in HH 1301
Click here for the Syllabus
This course is intended to expose non-economics Masters level students to the principle workings of the international economy. The course consists of two parts: i) International Trade and Trade Policy; ii) Open Economy Macroeconomics and Finance. In the first part of the course, we will consider the basis for and scope of world trade, the principle tools of trade policy and the forces behind their use. In the second part, we will examine balance of payments problems, the nature and instruments of foreign exchange trading, exchange rate determination, exchange rate regimes, and open-economy macroeconomics and policy. Our emphasis will be on understanding the abstract theoretical foundations with a view towards applying them in the analysis of international economic issues and events.
Lectures
Note: These lecture notes are not meant as a substitute for your own class notes. Rather, they are meant to assist you in taking class notes. In no cases are they complete representations of the course material, and in most cases, they will not be comprehensible without having attended class.
Files can be viewed with Adobe Acrobat Viewer 
(click here to download)
If you prefer to have the Powerpoint presentations, click here
| Course Schedule | |||
|---|---|---|---|
| Week | Subject | Lecture Notes | Readings: (SS - Sprinkle-Sawyer; KO - Krugman-Obstfeld) |
| Part I: International Trade | |||
| 3 | Introduction, Definitions and data; Tools of Analysis for International Trade |
FT: Skim chapter 1, pp. 2-14 |
|
| 4 | Absolute Advantage; Comparative Advantage and the gains from Trade; The Classical Model of Trade |
Lecture 3.pdf | FT: Chapter 2, Chapter 3, pp. 70 - 79 SS: Chapter 2 KO: Chapter 3 |
| 5 | Heckscher-Ohlin Model and its Extensions | Lecture 4.pdf | FT: Chapter 4 SS: Chapter 3 KO: Chapter 4 |
| 6 | Leontieff Paradox; Explanations of Intra-Industry Trade; Increasing Returns to Scale and Impefect Competition |
Lecture5.pdf | FT: Chapter 4, pp. 108 - 110; Chapter 6 SS: Chapter 3: pp 76-79 Chapter 4 KO: Chapter 3: pp 45-47 Chapter 4: pp 71-76 Chapter 6 |
| 7 | International Trade Policy: Tariffs | Lecture6.pdf | FT: Chapter 8; Chapter 9 SS: Chapter 6 KO: Chapter 8 |
| 8 | International Trade Policy cont.: Nontariff Barriers and arguments for Protectionism | FT: Chapter 10; SS: Chapter 7 KO: Chapter 8 |
|
| Part II: Open Economy Macroeconomics | |||
| 9 | National Income Accounting and the Balance of Payments | Lecture7.pdf | FT: Chapter 12.1-12.2; Chapter 16 SS: Chapter 11 KO: Chapter 12 |
| 10 | Foreign Exchange Market and Exchange Rates | Lecture8.pdf | FT: Chapter 13, Chapter 15.1 SS: Chapter 12 (skim); Chapter 13 KO: Chapter 13 |
| 11 | Money, Interest Rates and Exchange Rates | Lecture9.pdf | FT: Chapter 14.2; Chapter 15 (except 15.1); SS: Chapter 14 KO: Chapter 14 |
| 12 | Price Levels and the Exchange Rate in the Long Run | Lecture10.pdf | Chapter 14 (skip 14.5). SS:Chapter 15 KO: Chapter 15 |
| 13 | The Exchange Rate and Output in the Short Run | Lecture11.pdf | FT: Chapter 18 SS:Chapter 16 KO: Chapter 16 |
| 14 | The IS-LM Model in the Open Economy; J-Curve; Exchange Rate Pass-Through; Macroeconomic Policy | Lecture12.pdf | |
| 15 | Exchange Rate Regimes | Lecture13.pdf | FT: Chapter 19 |
Problem Sets
The problem sets here are to be turned in on the date shown. Please contact me if you have any questions.
Files can be viewed with Adobe Acrobat Viewer (click here to download)
Problem Set |
Solution |
Due Date |
| Problem Set 1 Solution |
9/28/2009 |
|
| Problem Set 2 | Problem Set 2 Solutions | 10/12/2009 |
| Problem Set 3 | Problem Set 3 Solutions | 11/9/2009 |
| Problem Set 4 | Problem Set 4 Solutions | 11/23/2009 |
| Problem Set 5 | Problem Set 5 Solutions | 11/30/2009 |