International Economic Relations

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International economic integration has grown tremendously over the past decades. Partly due to deregulation and liberalisation of markets, international trade and capital flows are booming. The world is indeed becoming a global village. In theory, free movement of labour, goods and capital should benefit each and every country. However, not all countries benefit equally. Some like the anti-globalist groups even contend that the industrialized world continues to exploit the developing world, leading to a widening of the gap between countries. In this course, we critically analyse the theoretical fundamentals of both the financial-monetary and real aspects of the international economy. On the monetary side, exchange rate determination, the role of international financial markets and the choice of exchange rate regime are the focus. On the real side, international competitiveness, the gains from trade and factor move inputs are central. We use the theoretical insights to discuss extensively important problems, like trade policy and the distribution of wealth across nations. Obviously, international organisations and institutions like the IMF, World Bank and WTO play an important role in our critical discussions.

Overall, the course will focus on the following topics:
* international trade,
* exchange rates,
* macroeconomic policy,
* globalisation.