Universität Wien
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290016 VU Special Topics in Economics (2015W)

Macroeconomics: Open Goods and Financial Markets from an Economics Perspective

4.00 ECTS (2.00 SWS), SPL 29 - Geographie
Continuous assessment of course work
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: German

Lecturers

Classes (iCal) - next class is marked with N

  • Tuesday 06.10. 18:00 - 21:30 Hörsaal 4C Geographie NIG 4.OG C0409
  • Tuesday 20.10. 18:00 - 20:00 Hörsaal 4C Geographie NIG 4.OG C0409
  • Tuesday 03.11. 18:00 - 21:30 Hörsaal 4C Geographie NIG 4.OG C0409
  • Tuesday 17.11. 18:00 - 21:30 Hörsaal 4C Geographie NIG 4.OG C0409
  • Tuesday 01.12. 18:00 - 21:30 Hörsaal 4C Geographie NIG 4.OG C0409
  • Saturday 05.12. 08:00 - 13:00 Hörsaal II NIG Erdgeschoß
  • Tuesday 12.01. 18:00 - 21:30 Hörsaal 4C Geographie NIG 4.OG C0409
  • Tuesday 26.01. 18:00 - 21:30 Hörsaal 4C Geographie NIG 4.OG C0409

Information

Aims, contents and method of the course

Part 1: Introduction and Recap: Exchange Rates, the Balance of Payments
Real and nominal exchange rates, price and quantity quotations, effective exchange rates, purchasing power parity, import and export ratios, the current and capital account.

Part 2: The IS-LM Model in a closed economy
Equilibria on the goods and financial market, limits tot he IS-LM Model

Part 3: Advancing the goods model to account for foreign trade
Export and imports, drivers and causes for international trade, implications on the equilibrium on the goods market.

Part 4: Advancing the financial model to account for cross border transactions
Interest rate parity, exchange rate policies and regimes. Why does the expectation of an interest rate increase in the US pressurize currencies of developing countries?

Effects of fiscal and monetary policy under fixed and free exchange rates, implications from a business cycle perspective, interaction in a 2-state model, limits of the model

Part 5 : Advanced topics in international macroeconomics
Depending on time and interest of students
Drivers of foreign exchange in detail: the mechanism of comparative advantage (Riccardo), diverging factor endowments in the Heckscher-Ohlin Model, preference for a variety of goods and monopolistic competition in Krugman’s approach
Drivers and consequences of foreign direct investment, cross border mobility of the factors labour and capital
Case studies: currency crises of Argentina 1998-2002 and Mexico 1994-1995
US current account deficit: dark matter theory in economics or the sword of Damocles
Optimum currency areas vs. the Euro Area
Foreign currency loans: background and consequences

Assessment and permitted materials

Intermediate exam (30%), final exam (50%), project work (20%).

Minimum requirements and assessment criteria

The course aims at providing an understanding of the central macroeconomic interactions between interest rates, goods and financial transactions, exchange rates, monetary reserves and business cycle policy. Successful participants know the balance of payments, are able e.g. to judge on the consequences of monetary policy on exchange rates and to explain the mechanics.

Examination topics

Reading list

Blanchard, O. und Illing, G. (2009). Makroökonomie. Pearson Studium.

Krugman, P., Obstfeld, M. und M, M (2011). Internationale Wirtschaft: Theorie und Politik. Pearson Studium.

Breuss, F. (2003). Reale Außenwirtschaft und Europäische Integration. Peter Lang Pub Incorporated.

Rübel, G. (2004). Grundlagen der realen Außenwirtschaft. Internationale Standardlehrbücher der Wirtschafts- und Sozialwissenschaften. Oldenbourg.

Rübel, G. (2005). Grundlagen der monetären Außenwirtschaft. Internationale Standardlehrbücher der Wirtschafts- und Sozialwissenschaften. Oldenbourg.

Siebert, H. (1994). Außenwirtschaft. UTB für Wissenschaft : Uni-Taschenbücher: Große Reihe. Fischer.

Association in the course directory

(L2-e1) (UF MA GW 03)

Last modified: Mo 07.09.2020 15:42