This course will focus on the environment of firms with particular emphasis on economic variables such as GNP, inflation, interest rates, exchange rates and international trade. The course is divided into five parts: The first presents the basic tools of macroeconomic management by focusing on historical episodes, particularly in the United States. The second looks at national economic strategies for development. The third section concentrates on the recent financial and currency crises in emerging markets. The fourth part looks at the problems faced by transition economies. Finally, the last module looks at challenges of developed countries.

Most of the material is based on cases. For some classes, however, we will rely on readings from two excellent books: International Economics and International Economic Policy: A reader, Third Edition, Philip King [K], and Toward a new international financial architecture, Institute for International Economics, 1999, Barry Eichengreen [E].

Class participation by everybody is extremely important for this course to be a success, and I expect everyone to prepare all the cases.

There is also a list of optional / additional readings: These focus on the analytical material and often go beyond what we will cover in class. These are based on Dornbusch, Fisher and Startz, 1998, Macroeconomics, 7th Edition, [DFS] Paul Krugman and Maurice Obstfeld's International Economics, Theory and Policy, Addison-Wesley, 5th Edition, 2000 [KO] or Gregory Mankiw, Macroeconomics, Worth Publishers, Fourth Edition, ISBN: 1-57259-644-9 [M].

You will have two papers and an in-class open book final exam.

30% of the grade will be based on class participation, 30% will be based on the two assignments (15% each), and 40% will be based on an open book final exam.