EC312: International Economics

Introduction

This module allows students to develop a good understanding of international macroeconomic issues, and in particular to understand and manipulate simple economic models and to read critically the empirical literature in the area of international macroeconomics.

Principal Aims

The module aims to enable students to obtain a good understanding of international macroeconomic issues and examines national income accounting in an open economy. Students will develop an appreciation of the balance of payments, models of the intertemporal approach to the current account, the foreign exchange market and the interaction between price levels and exchange rates in the long-run. A critical understanding of models of exchange rate determination with flexible prices, fixed prices and sticky prices will be developed. Students will also develop an understanding of the empirical literature on Purchasing Power Parity and on the analysis of trade flows (using the gravity equation framework) at the macroeconomic level.

Principal Learning Outcomes

Professional skills: … Review the relevant literature and evidence and demonstrate an ability to apply it.

Subject knowledge and understanding: … Demonstrate general knowledge and understanding of international macroeconomics.

Subject knowledge and understanding: … Demonstrate a critical understanding of applications of economics that have been specific to the study of international macroeconomics.

Key skills: … Understand and manipulate simple economic models, and to read critically the empirical literature, in the area of international macroeconomics.

Cognitive skills: … Apply critical analysis to the topics of the module, formulate concepts and hypotheses, and show how they are tested in relevant literature.

Syllabus

Context

Optional Module

GL11 - Year 3, GL12 - Year 4, L100 - Year 3, L103 - Year 4, L116 - Year 3, L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 3, LM1H - Year 4, V7ML - Year 3, V7MM - Year 4, V7MP - Year 3, V7MR - Year 3, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 3, L1CA - Year 3, L1CC - Year 3, L1CG - Year 4, L1CB - Year 4

Pre or Co-requisites

Any of:

EC201-30 Macroeconomics 2 and

EC202-30 Microeconomics 2

OR

EC204-30 Economics 2

Summary:

Modules: (EC201-30 and EC202-30) and EC204-30

Assessment

Assessment Method

Coursework (20%) + Centrally-timetabled examination (On-campus) (80%)

Coursework Details

Centrally-timetabled examination (On-campus) (80%) , Test 1 (20%)

Exam Timing

Summer

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully - and read through the entire paper at least once before you start entering your answers.

There are TWO sections in this paper. Answer ALL THREE questions in Section A (48 marks in total) and ONE question in Section B (52 marks).

Use a separate booklet for each Section.

• Use a PINK booklet for Section A questions.

• Use a SEPARATE PINK booklet for Section B questions.

You must write the number(s) of the question(s) you have answered on the front cover of each booklet. Make sure the numbers are clearly visible and correspond to the questions you completed inside that booklet.

Do not submit answers to more than the required number of questions. If you do, only the first answers (in the order they appear) will be marked, up to the required number for each section.

Approved scientific (non-graphical) pocket calculators are allowed.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.

Reading Lists