International Macroeconomics

The course deals with the way macroeconomic policy possibilities are affected by degrees of openness to international trade and international capital movement. The traditional Mundell-Fleming model is used as a starting-ppoint for an analysis of different cases, for instance, less than perfect capital movement, fixed vs. flexible exchange rates, static vs rattionaal expectations, and union action in wage negotiations, Different exchange rate models are discussed and related to the Mundell-Fleming model, for instance, Dombusch's 'Overshooting' model, the portfolio balance model and the supply price model. Also treated are current centralbank policy issues, inflation, pricing, and how the result of central banks policies can be evaluated. Instruction is in the form of lectures and seminars