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| Semester | fall semester 2023 |
| Course frequency | Every fall sem. |
| Lecturers | Andreas Müller (andi.mueller@unibas.ch, Assessor) |
| Content | The course builds on the macroeconomics, microeconomics and quantitative methods taught in the Bachelor program. It focuses on international macroeconomics, which we discuss both at an intuitive and technically advanced level (for instance, by solving a stochastic and dynamic decision problem of households and firms in a multi-period economy). In the first part, we develop a simple two-period model of an open economy that we will use throughout. With the appropriate variations to the benchmark theoretical framework, we will address central topics in the field, including the effect of aggregate uncertainty in open economies; the causes of the Great Moderation; the role of the public sector in the occurrence of twin deficits; inflationary finance; and balance of payment crisis. In the second part, we will first study and document business-cycle facts from around the world. We then develop a fully dynamic open economy real-business-cycle-model. We will learn how this dynamic stochastic general equilibrium model can be approximated around the steady-state, solved and simulated on the computer. Throughout the course, the predictions of the theoretical models are confronted with data. These tests are used to highlight the power of a particular theory in providing insight into a particular real-world problem, but also to mark its limits and to motivate critical thinking. |
| Learning objectives | The aim of the course is to familiarize students with the tools of international macroeconomics and finance and to apply these tools in macro-policy issues using the same analytical approach (microfoundation of the macroeconomy) as is employed in the research literature. Upon successful completion of the course students will have acquired an appreciation of the role of international capital and goods markets in the determination of economic outcomes. Specifically, they will be familiar with a theoretical framework through which they can interpret movements in the real and nominal exchange rate and its relationship to underlying shocks and other key macroeconomic variables in an open economy. Students will also be familiar with the effects of monetary and fiscal policy in an international setting. They will be able to critically assess the appropriateness of a particular policy in response to important events within the international financial system. |
| Bibliography | Main textbooks: • Part I: Schmitt-Grohe, S., M. Uribe and M. Woodford (2022). International Macroeconomics, Princeton University Press. • Part II: Schmitt-Grohe, S. and M. Uribe (2017). Open Economy Macroeconomics, Princeton University Press. Additional Reading: • Obstfeld, M. and K. Rogoff (1996): Foundations of International Macroeconomics, MIT Press. |
| Comments | The course consists of one 2-hour lecture every week. The discussion of end-of-chapter exercises will be integrated into the lecture. |
| Admission requirements | No special requirements. |
| Course application | Registration: Please enroll in the Online Services (services.unibas.ch); Eucor-Students and mobility students of other Swiss Universities or the FHNW first have to register at the University of Basel BEFORE the start of the course and receive their login data by post (e-mail address of the University of Basel). Processing time up to a week! Detailed information can be found here: https://www.unibas.ch/de/Studium/Mobilitaet.html After successful registration you can enroll for the course in the Online Services (services.unibas.ch). Applies to everyone: Enrolment = Registration for the course and the exam! |
| Language of instruction | English |
| Use of digital media | No specific media used |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Wednesday | 10.15-11.45 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S15 HG.31 |
| Modules |
Core Module: Core Areas in Monetary Economics (Master's Studies: International and Monetary Economics) Modul: Europäisierung und Globalisierung (Master's Studies: European Global Studies) Modul: Methoden der Wirtschaftswissenschaften (Master's Studies: European Global Studies) Module: Core Courses in International Business, Trade and the Environment (Master's Studies: Business and Economics) Module: Field Electives in Economics and Public Policy (Master's Studies: Economics and Public Policy) Module: Preparation Master's Thesis in Economics (Master's Studies: Sustainable Development) Module: Specific Electives in Business and Economics (Master's Studies: Business and Economics) Module: Specific Electives in Economics (Master's Studies: Business and Economics) Module: Specific Electives in International Business, Trade and the Environment (Master's Studies: Business and Economics) Vertiefungsmodul Global Europe: Handel und Unternehmen in der Globalisierung (Master's Studies: European Global Studies) |
| Assessment format | record of achievement |
| Assessment details | Written exam: 08.01.24; 14:15-15:45. WWZ S13: A-K; WWZ S15: L-Z. You can still withdraw from the examination by submitting a completed, signed form to our office from 17.10.23 until 27.10.23 / 12:00 o’clock. The deregistration form and the mail address can be found on the homepage of the Dean of Studies Office: https://wwz.unibas.ch/en/studies/examinations/de-/registration-of-examinations/ Prior to 16.10.23, please deregister only in the Online Services. |
| Assessment registration/deregistration | Reg.: course registration, dereg: cancel course registration |
| Repeat examination | no repeat examination |
| Scale | 1-6 0,1 |
| Repeated registration | as often as necessary |
| Responsible faculty | Faculty of Business and Economics , studiendekanat-wwz@unibas.ch |
| Offered by | Faculty of Business and Economics |