Universität Wien
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290017 VU Special Topics in Economics (2021W)

Macroeconomics: Open Goods and Financial Markets from an Economics Perspective

4.00 ECTS (2.00 SWS), SPL 29 - Geographie
Continuous assessment of course work
MIXED
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. 40 participants
Language: German

Lecturers

Classes (iCal) - next class is marked with N

One part of the students will alternately be on site, the other part will attend the course in a digital way at home. The definite arrangement will then be announced by the course intructors probably via Moodle.

11/22/2021 intermediate test
11/29/2021 practice unit
01/31/2022 final test

UPDATE 11/24/2021: Because of the decreed by the federal government and the lockdown, the course units will take place online via Moodle from now until further notice!

  • Monday 11.10. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 18.10. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 25.10. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 08.11. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 15.11. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 22.11. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 29.11. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 06.12. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 13.12. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 17.01. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 24.01. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518
  • Monday 31.01. 11:30 - 13:30 Hörsaal 5A Geographie NIG 5.OG A0518

Information

Aims, contents and method of the course

The increase in the internationalisation of goods and financial markets implies a heightened importance in understanding the mechanisms of real and monetary open economics. To significant extent current economic structures --- especially in a small open economy like Austria --- are related to external trade. Exchange rates, export and import ratios, foreign direct investments, currency pegs, etc. are frequently used catch phrases, which have to be put into perspective and be underpinned with economic theory.

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

Part 2: The goods and the financial market in a closed economy
-Effects of fiscal and monetary policy, effects of thrift; limits of the 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; limits of the model.

Part 4: Advancing the financial model to account for cross border transactions
-Interest rate parity, exchange rate policies and regimes. How can an exhange rate be held fixed? When does this fail to work?
-Effects of fiscal and monetary policy in flexible exchange rate mechanisms, implications of including trade and foreign transactions from a business cycle perspective; limits of the model.

Part 5: Implications of foreign trade
-Ricardo s model of comparative advantage
-Economies of scale and the infant industry argument
-Firm competition and tax competition

Part 6 : Advanced topics in international macroeconomics
-Depending on time and interest of students
-Effects of tariffs in a simple supply demand model
-Factor mobility, 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.

The course aims at providing an understanding of the central 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.

Assessment and permitted materials

20% case study with written summary
35% intermediate exam
45% final exam

Calculator permitted.

Minimum requirements and assessment criteria

Positive if aggregated score ≥ 50% and at least one test positive.

Examination topics

-Blanchard, O. and Illing, G. (2009). Makroökonomie. Pearson Studium - Economic VWL. Pearson Studium. 5. Auflage. (Kapitel 3 - 5, 18-21)
-Krugman, P., Obstfeld, M., and Melitz, M. (2011). Internationale Wirtschaft: Theorie und Politik der Außenwirtschaft. Pearson Studium - Economic VWL. 9.Auflage. (Kapitel 3, 7, 8, 13, 14, 15)

Reading list

-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

(MA UF GW 03)

Last modified: Fr 10.12.2021 15:29