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Program Type: 
Non Thesis
Course Code: 
ECON 527
Course Type: 
Elective
P: 
3
Lab: 
0
Credits: 
3
ECTS: 
10
Course Language: 
English
Course Coordinator: 
Courses given by: 
Course Objectives: 

Modern international macroeconomics is developed in two main ways. First, theories of mainstream micro and macroeconomics have been applied in an international setting. Second, theoretical and empirical methods have been applied by researchers into the classical issues of international economics focusing on international policy problems and crises. The course gives an introduction to the main tools and models as well as the main current research areas in International Macroeconomics.

Course Content: 

This course extends macroeconomic theories to open economy and provides perspectives on major topics in international macroeconomics. It provides a review and analysis of current international macroeconomic and financial issues, policies and events, including current account, life cycle, tax policies, inflation, interest rates and exchange rates in the global economy; causes and consequences of trade deficits and external imbalances; developing and advanced market economies’ financial crises; causes of currency, banking and financial crises in emerging market and advanced economies.

Teaching Methods: 
1: Lecture, 2: Question-Answer, 3: Discussion, 12: Case Study
Assessment Methods: 
A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

  1. Explains basic concepts of International Macroeconomic Policy.
  2. Analyzes dynamics of small open economies.
  3. Explains main concepts of the life cycle, tax policy, and the current account in open economies
  4. Evaluate goals and options of international macroeconomic policy.
  5. Compares fixed and floating exchange rates and evaluates the international capital market and banking system.
  6. Analyzes case studies of financial crises in developing and advanced market economies.

Course Flow

COURSE CONTENT
Week Topics Study Materials
1 Introduction to International Macroeconomic Policy  
2 Dynamics of Small Open Economies: Current Account M. Obstfeld and K. Rogoff, (1996). Foundations of International Macroeconomics. MIT Press.
3 Dynamics of Small Open Economies: Investments M. Obstfeld and K. Rogoff, (1996). Foundations of International Macroeconomics. MIT Press.
4 The Life Cycle, Tax Policy, and the Current Account: Government Budget Policy M. Obstfeld and K. Rogoff, (1996). Foundations of International Macroeconomics. MIT Press.
5 The Life Cycle, Tax Policy, and the Current Account: Investments and World Interest Rate M. Obstfeld and K. Rogoff, (1996). Foundations of International Macroeconomics. MIT Press.
6 Macroeconomic Policy Goals and Options in an Open Economy M. Obstfeld and K. Rogoff, (1996). Foundations of International Macroeconomics. MIT Press.
7 Macroeconomic Policy under Floating Exchange Rates P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
8 Review and Midterm Exam  
9 Fixed Exchange Rates versus Floating Exchange Rates P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
10 The International Capital Market P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
11 International Banking and its Regulations P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
12 Crises in Developing Countries P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
13 Crises in Advanced Countries P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
14 Review  

Recommended Sources

RECOMMENDED SOURCES
Textbook P. Krugman, M. Obstfeld, M.J. Melitz, (2011) International Economics: Theory and Policy. 9th edition, Pearson.
Additional Resources M. Obstfeld and K. Rogoff, (1996). Foundations of International Macroeconomics. MIT Press.

Material Sharing

MATERIAL SHARING
Documents Lecture notes
Assignments End of chpater problems and homework assignments
Exams Exam questions

Assessment

ASSESSMENT
IN-TERM STUDIES NUMBER PERCENTAGE
Mid-terms 1 50
Quizzes (attendance, presentation, etc.)    
Assignments 1 50
  Total 100
Contribution of Final Examination to Overall Grade   50
Contribution of In-Term Studies to Overall Grade   50
  Total 100

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM
No Program Learning Outcomes Contribution
    1 2 3 4 5
1 Formulate and develop a critical and comprehensive understanding of global and national economic problems, and construct and design practical solutions; x        
2 Extract information and concepts from various disciplines in social sciences and integrate them under the rubric of economics;     x    
3 Construct testable hypotheses to find original, practical solutions to various social ills and problems;   x      
4 Develop an analytical understanding of economic problems, and the ability to evaluate the inherent logic, assumptions and conclusions of alternative approaches; x        
5 Develop the necessary technical skills to evaluate alternative approaches in economics;   x      
6 Formulate research projects, plan and conduct research in social sciences in general and in economics in particular;   x      
7 Present the results of their research in national and international conferences and in scientific and professional venues;   x      
8 Apply the scientific / academic modes of thought and analysis to their professional lives and form a bridge between the analytical and abstract modes of thinking of academia and the practical and dynamic skills of business life; x        
9 Nurture and develop the analytical and technical skills necessary to continue their studies at a Ph.D. level, either in Turkey or elsewhere around the globe. x        

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COUSE DESCRIPTION
Activities Quantity Duration (Hour) Total Workload (Hour)
Course Duration (Including the Exam Week: 15 x total course hours) 15 3 45
Hours for off-the-classroom study (Pre-study, practice) 15 10 150
Mid-terms 1 25 25
Quizzes (attendance, presentation, etc.)      
Assignments 1 10 10
Final Examination 1 25 10
Total Work Load     240
Total Work Load / 25 (s)     9.6
ECTS Credit of the Course     10