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POL PIEC - International Economics* (Q1) - CLOSED FOR FURTHER ENROLLMENT

Faculty
Paul Duo Deng
Course Coordinator
Paul Duo Deng
Prerequisite/progression of the course
Micro and Macro-economics
Course content, structure and teaching
This course offers a detailed introduction to international economics. In the first part of the course, we study International Trade Theory that focuses on the behaviour of the “real” economic variables such as relative prices as well as the amount of goods produced, consumed and traded. In the second part of the course the focus is on the “monetary” variables, which are the overall price levels measured in different currencies, the money supply, interest rates, inflation, and foreign exchange rates.
Learning Objectives
After having followed the course the student should be able to:
  • Describe and rationalize the main assumptions behind trade models such as the Hechscker-Ohlin model, the Ricardian model, imperfect competition models.
  • Perform policy experiments (e.g. introducing tariffs).
  • Illustrate diagrammatically these models and perform analysis of the pattern of trade, gains of trade and effect on the income distribution from free trade.
  • Solve algebraically simple trade models (e.g. imperfect competitive models.) in order to determine the equilibrium economic variables (e.g. price, average costs, quantity, profit, etc.).
  • Describe and rationalize the main assumptions behind the main models of Open Economy Macroeconomics, such as models based on PPP, the uncovered interest parity etc.
  • Illustrate diagrammatically these models, perform policy experiments (like changing the Money Supply) and interpret verbally what happens when moving from one equilibrium to another.
Type of examination, exam aids and assessment
4 hour closed book exam
Teaching methods
Lectures
Recommended literature
To be confirmed

Last updated by Electives Secretariat 25/06/2010