The goal of the course is to develop the student’s knowledge about issues in open-economy
macroeconomics and finance and their skills in working with advanced models that deal with these issues.

On completion of the course, the students will be able to:

Demonstrate broad knowledge and systematic understanding of how intertemporal trade affects
macroeconomic variables and how such macroeconomic variables are related to each other when
there is intertemporal trade.

Demonstrate the capacity for scholarly analysis of open-economy macroeconomics and finance
issues utilizing advanced mathematical techniques in theoretical models dealing with such issues.
Demonstrate the ability to independently and creatively identify and formulate issues in open
macroeconomics and finance with scholarly precision and to plan and use appropriate methods to
undertake research on such issues within a predetermined time frame.

Demonstrate intellectual autonomy and disciplinary rectitude in the discussion of a specific topic
in the area of open macroeconomics and finance.

The course covers various theoretical issues dealing with advanced macroeconomics and finance,
including the intertemporal trade and the current account balance, multiple (even infinite) time periods in
open macroeconomic models, overlapping generation models, and the roles of money, price rigidities
nontraded goods, heterogeneity (in goods and firms), sovereign default possibilities, and general
equilibrium in open macroeconomics models.

Lectures.

The teaching is conducted in English.

Admitted to a doctoral programme in economics or a related subject of a recognized business school or university.

The course is graded Fail (U) or Pass (G).

Course assessment consists of three elements

• Written Exam 1 deals with ILOs 1 and 2
• Written Assignment deals with ILOs 1, 2, 3, and 4
• Written Exam 2 deals with ILOs 1 and 2
Each of these three elements must be passed to obtain a pass in the course.

The grades given are pass or fail.

A course evaluation will be conducted at the end of the course.

Foundations of International Macroeconomics, by Maurice Obstfeld and Kenneth Rogoff, MIT Press, 1996.
ISBN-10: 0-262-15047-6.
Supplementary Literature will also be assigned.