| 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 |
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| 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 |