Globalization and Macroeconomic Policies [ECONM823]

Learning outcomes

Due to the COVID-19 crisis, the course desciption on this page is subject to change, in particular that concerning the teaching mode (presential, distance or in a comodal or hybrid format) as well as evaluation methods

This course covers a number of topics in international macroeconomics and finance. Note that the title of the course is going to change to: "Globalization and Macroeconomic Policies" The main objective is to enable students to understand issues facing developed and developing countries in the era of globalization.

Content

We will address questions such as: What is the optimum size of a monetary union? Does a nation gain/loose by relinquishing its currency? Why do capital flow more from China and Saudi Arabia to the US and not the reverse? Why have some emerging market economies been accumulation reserves in recent years?

Table of contents

Part 1: Economics of Monetary Union 1. Economic Cost of MU: Theory of Optimum Currency Areas 2. Theory of Optimum Currency Areas: A Critique 3. Empirical Analysis on Asymmetric Shocks: SVAR Models 4. Benefits of Monetary Union 5. Costs and Benefits Compared: EMU, Africa, Latin America and Asia 6. Transition to MU: Economics and Politics of Convergence Criteria Part 2: Financial Globalization 1. Lucas Paradox: Why Doesn't Capital Flow from Rich to Poor Countries? 2. Financial Globalization and Productivity Growth 3. Financial Globalization and Macroeconomic Volatility 4. Financial Globalization and risk sharing Part3: Global Imbalances 1. Facts 2. Causes and consequences of Emerging Market Reserves Accumulation 3. Adjustment of Global Imbalances Part 4: International Business Cycle Transmission 1. Sources of macroeconomic fluctuations : country, regional and global factors 2. International Monetary and Fiscal Policy Coordination Part 5: Other Issues on Emerging Markets & Developing countries 1. China-Africa Linkages 2. Macroeconomic Challenges of Scaling Up Aid

Exercises description

None