ECON 229 - Open Economy Macroeconomics

Open Economy Macroeconomics studies how macro-economies are affected by trade and exchange rates. This course compares the effects of fiscal and monetary policy under fixed versus flexible exchange rates, and the macroeconomic effects of changes in currency values. For many emerging and small advanced economies, interest rates and exchange rates are largely determined by international factors, while policies in large advanced economies can influence these variables. Also examined are the implications of an emerging country’s integration into international financial markets.  We will also study the economic and political integration of countries into the European Union and the European Monetary Union. 
Prerequisites & Notes: Econ 101.