Jim Whitney Economics 131

Economics 131: The World Economy

Course schedule: IVA. The foreign sector

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Dates: Mar.29-Apr.12
Topic: IV. Macroeconomic Activity in a Global Economy 
IVA. The Foreign Sector
Readings: Text:  11, 12, 13 (pp.352-376, 378-383),  18 (pp.487-489) 
See schedule below for supplementary readings
Deadlines: Apr.14: Paper due (initial submission) 
Apr.16: Problem Set 5 due 
 

 

IV: Macroeconomic Activity in a Global Economy
IVA. The Foreign Sector
Day 26,29: IVA1. National income and international transactions
Readings:    Text:  11 
   Mankiw, Chapter 29 (pp.637-646)
Handouts:    Examples of international transactions
IVA2. Foreign exchange markets
Day 30: IVA2a. Exchange rates
Readings:    Text: 12 (pp.322-342), 13 (pp.352-376, 378-383),  18 (pp.487-489) 16 
   Mankiw, Chapter 29 (pp.647-650)
Handouts:    Exchange rates
   Exchange rate trends
Day 31: IVA2b. The purchasing power approach to exchange rates
Readings:    Text: 13 (pp.359-365, 370-372) 
   Mankiw, Chapter 29 (pp.651-655)
Handouts:    Evidence regarding purchasing power parity
   Purchasing power parity? Evidence from U.S. data
Day 32: IVA2c. The asset market approach to exchange rates
IVA2d. Exchange rates and competitiveness
Readings:    Text: 12 (pp.342-349) 13 (pp.357-359, 372-376)
Handouts    The interest parity condition
   Combining IPC and PPP