This unit studies macroeconomic theory and policy in a global trading world. The microfoundations of the various sectors are examined in the context of an open economy. The evolution of international money and capital markets is described, the operation of the foreign exchange market is examined, showing how its microstructure affects its macro performance. Theories and tests of the efficiency of international capital markets are surveyed, as well as core theories and tests of exchange rate and asset price determination. The unit develops the macroeconomic implications of monetary and fiscal policies for small and large open economies for different regimes.
1x2hr lecture/week, 1x1hr tutorial/week
assignments (20%) and Mid-semester test (20%) and 1x2hr Final exam (60%)
ECOS2002 or ECOS2902 or ECOS2040