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This course will focus on the policy and economic environment of firms with particular emphasis on economic variables such as GNP, inflation, interest rates, exchange rates and international trade. The course is divided in 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:

  • Amazon logo King, Philip G. International Economics and International Economic Policy: A Reader. 3rd ed. McGraw-Hill/Irwin, 1999. ISBN: 0-07-236069-0.
  • Amazon logo Eichengreen, Barry. Toward a New International Financial Architecture: A Practical Post-Asia Agenda. Institute for International Economics, 1999. ISBN: 0-88132-270-9.

Moreover, the professor has also prepared a list of optional / additional readings: These focus on the analytical material and often go beyond what we will cover in class. They are based on:

  • Amazon logo Blanchard, Olivier. Macroeconomics. 3rd ed. Prentice Hall, 2002. ISBN: 0-13-067100-2.
  • Amazon logo Dornbusch, Rudiger, Stanley Fisher, and Richard Startz. Macroeconomics. 7th ed. McGraw-Hill/Irwin, 1997. ISBN: 0-07-017985-9.
  • Amazon logo Krugman, Paul R., and Maurice Obstfeld. International Economics: Theory and Policy. 6th ed. Addison-Wesley Longman, 2002. ISBN: 0-201-77037-7.
  • Amazon logo Mankiw, N. Gregory. Macroeconomics. 4th ed. Worth Publishers, 1999. ISBN: 1-57259-644-9.

Study questions are available for all the cases so that you can prepare for our discussions. Class participation by everybody is extremely important. Without it, this course cannot be a success. Everyone is expected to prepare all the cases.

Major Assignments

Students will have three problem sets, one midterm exam and a final project. The four problem sets cover the most important models we are going to study. The problem sets can be completed in groups of three or four. The midterm is essentially applications of the models, it is in class and closed book.


Class Participation 25%
Assignments 20%
Closed Book Midterm Exam 25%
Final Project 30%