This policy-oriented course starts with an historical analysis of globalization, with a focus on the lessons that are most relevant for globalization today and the current challenges that policymakers face. Topics covered include globalization and inequality, capital flows to poor countries, and the main differences between globalization today and in the past. The course then turns to core issues in open economy macroeconomics, including current account imbalances, exchange rate determination, and monetary policy. The focus here is on solving simple models of the economy using equations and diagrams. Finally, the course considers the empirical performance of economic models of exchange rates, including modern models based on Taylor rules. On completion of the course, students should be able to identify and critically assess the key challenges that face policymakers in the global economy; solve simple economic models and demonstrate their implications for policy; and understand the main factors that affect exchange rates in the short and long run.

A 2-hour lecture each week for 10 weeks.

Coursework: essay (30% of final grade for course)

Examination: two-hour in-person degree exam (70% of final grade for course).

This is a policy-oriented course. It starts with an analysis of the conduct of monetary policy and macroeconomic policy in general. It then analyses how openness of the economy affects a country's macroeconomic policy and economic performance.

By the end of the course students should be able to:

1. Define globalization and analyse its historical costs and benefits and impact on wages, income distribution and migration;

2. Explain key successes and failures in the history of international policy coordination;

3. Analyse the significance of current account imbalances for international policymakers.

4. Understand and critically assess key aspects of international monetary and macroeconomic policy coordination.

5. Explain the key features of monetary policy in an open economy environment.

6. Critically evaluate the evidence from open economy monetary models of the exchange rate and open economy Taylor Rules.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.