This course is designed to provide students with a solid knowledge of the fundamental principles of international economics. After the course, the students should be able to understand and apply methods to analyze international economic relationships.

The course consists of lectures held twice a week in the second half of the term with ample room for discussions.

Topics related to:Intertemporal Trade and the Current Account BalanceDynamics of Small Open EconomiesThe Life Cycle, Tax Policy, and the Current AccountThe Real Exchange Rate and the Terms of TradeUncertainty and International Financial MarketsImperfections in International Capital MarketsGlobal Linkages and Economic GrowthMoney and Exchange Rates under Flexible PricesNominal Price RigiditiesSticky-Price Models of Output, the Exchange Rate, and the Current AccountThe contents discussed may go beyond the topics listed above, additional material may be provided and may possibly deviate from the book. There is, of course, also the possibility that not all topics indicated will be discussed and would, therefore, not be relevant for the exam.

Common Body of Knowledge – CBK 5: Bridging Economics and CBK3: Bridging Computing. If you have chosen International Business and Economics as your major, it helps to complete EC2: Macroeconomics prior to this course.

Common Body of Knowledge – CBK 1: Mathematical Methods and CBK 2: Statistical Methods.

Schmitt-Grohé, S., Uribe, M., and Woodford, M. (2022): International Macroeconomics: A Modern Approach, Princeton University Press.Obstfeld, M., and Rogoff, K. (1996): Foundations of International Macroeconomics, MIT Press.

There will be a final exam (4 dates) consisting of a combination of multiple-choice and open questions.

The final exam is based on the actual contents discussed in the lectures.

In order to successfully complete the course you need to achieve at least 50% of the attainable points of the final exam.