ECON4330 – International Macroeconomics

Course content

Emphasis is on how a country’s relations to the rest of the world influence aggregate economic activity, employment and inflation and forms the scope for monetary and fiscal policy.

Included in the course is a thorough introduction to the foreign exchange market and a discussion of world level interactions.

A major part of the course deals with the dynamic effects (effects over time) of economic shocks and policies.

The course prepares the student for taking part in professional discussions about the design of monetary and fiscal policy and for any kind of work where it is important to have a good understanding of macroeconomic fluctuations (e.g. for making predictions of macro variables, for choosing investment where the return depend on macro developments).

Learning outcome

Knowledge

You should know

  • how exchange rates, interest rates and capital movements between currencies are determined within different institutional settings for monetary policy (e.g. inflation targeting versus money supply targeting or exchange rate targeting)
  • how a country’s current account balance is determined, or, which amounts to the same, how capital movements between countries are determined
  • how shocks emanating abroad or in the foreign exchange market affect output, employment, inflation and interest rates
  • how the effects of changes in fiscal and monetary policy and of shifts in private sector behavior are modified through the foreign exchange markets and foreign trade
  • the role of cost competitiveness in the determination of economic activity
  • the different responses to economic shocks in the traded-goods and non-traded goods sectors of the economy
  • how effects of policy actions and economic shocks are transmitted from country to country in the world economy
  • the merits of different exchange rate systems (fixed versus flexible, monetary unions). In particular you will learn more about the effects over time as flows accumulate to stocks and as the economy moves towards long run equilibrium

Skills

You should be able to

  • analyze the effects of macroeconomic events on the future time path of the economy
  • analyze how forces inherent in the initial state of the economy will tend to change the economy over time
  • discuss how current and future events may influence the exchange rate through expectations
  • come up with policy suggestions and consider their effects over time

Competence

You should

  • be able to read and understand project reports and journal articles that make use of the concepts and methods that are introduced in the course
  • be able to make use of the course content in your own academic work, for example in analyzes that are part of the master’s thesis

Admission to the course

Students admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.

Students not admitted to the Master’s programme in Economics or the Master’s programme in Economic Theory and Econometrics (Samfunns?konomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.

Formal prerequisite knowledge

You must fulfill one of these prerequisites:

Overlapping courses

  • 10 credits overlap with S?K420.
  • 10 credits overlap with SO?420.
  • 10 credits overlap with ECON420.
  • 10 credits overlap with ECON420.

Teaching

Lectures and seminars.

The first seminars will be used to review bachelor level knowledge (student presentations), then there will be tutorials and exercises in regard to this course.

Compulsory tuition activities:

  • A compulsory term paper.

If you have submitted your compulsory assignment and not gotten it approved, you may be given a new attempt. The new attempt will have a short deadline.

When the compulsory term paper is approved, the result will be registered. The approved compulsory term paper is valid for 9 semesters, starting with the semester in which it is passed.

See The Faculty of Social Sciences` rules regarding compulsory tuition activities.

Candidates who have passed the course before autumn 2016 and wish to re-take the exam need to get the term paper approved before they can re-take the exam.

Absence from compulsory tuition activities

If you are ill or have another valid reason for being absent from compulsory tuition activities, your absence may be approved or the compulsory activity may be postponed.

Examination

A 3-hour written school exam.

You must have passed the mandatory activities in order to sit for the exam.

Previous exams

Exam papers with comments from examiner

Examination support material

Usage of a dictionary during the examination is allowed, subject to prior inspection by SV-info.?See guidelines for further details.

Language of examination

The examination text is given in English, and you submit your response in English.

Grading scale

Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.

Resit an examination

If you are sick or have another valid reason for not attending the regular exam, we offer a postponed exam later in the same semester.

See also our information about resitting an exam.

More about examinations at UiO

You will find further guides and resources at the web page on examinations at UiO.

Last updated from FS (Common Student System) Nov. 5, 2024 3:40:05 AM

Facts about this course

Level
Master
Credits
10
Teaching
Spring
Examination
Spring
Teaching language
English