This course focuses on the international aspects of the macroeconomy macroeconomic policy and international financial flows. We start by studying the behavior and determination of the price central to cross-border transactions the exchange rate. We study the influence of financial markets and international capital flows on the market for foreign exchange. We then develop an open economy macroeconomic model and analyze the influence of international capital flows on output and unemployment. We study international debt and the causes of international financial crises. We consider the trade-offs that governments face in their choice of exchange rate regime. Finally we study how the international financial system has responded to recent global financial crises.
