SØK3517 - Open Macroeconomics


Examination arrangement

Examination arrangement: Home examination
Grade: Letters

Evaluation form Weighting Duration Examination aids Grade deviation
Home examination 100/100 6 hours

Course content

Globalisation affects the effectiveness of macroeconomic policy instruments. Small open economics with free mobility of capital are strongly affected by international conditions. The foreign exchange market has a large impact on domestic financial markets and the possibilities for macroeconomic policy. New institutional arrangements are developed as response to the new challenges, as for example independent central banks and a common currency (EU). The course includes different topics to illustrate monetary and fiscal policy in small open economies.

Learning outcome

You learn
- the difference between the trade balance and the current account, and how the two concepts are related
- which macroeconomic forces that determine current account surplus or deficit
- about pros and cons of free capital movements across country borders
- whether trade and current account imbalances can and should be corrected with macroeconomic policy
- if a country can be bankrupt
- how private and government saving affects the trade balance and the current account
- how monetary and fiscal policies affect nominal and real exchange rates
- how exchange rates are affected by temporary and persistent economic shocks
- why and how economic crises spread across countries

You should be able to
- explain and discuss central theories and models of the current account, the foreign exchange market, international capital movements, and macroeconomic crises
- analyze a broad set of international macroeconomic problems by using relevant economic models.

General competence
You should be able to
- read and understand reports and research articles dealing with issues discussed in the course
- use the content of the course in your own academic work like your master thesis

Learning methods and activities

4 hours of lectures every week. Compulsory activity: Approved term paper(s)/ exercise(s). Specific requirements will be announced at the beginning of the term. The course is an optional master's course, and is not taught every autumn semester. Check Students enrolled in ISØ's master programs can take the course any semester.

Compulsory assignments

  • Approved term paper(s)/exercise(s)

Specific conditions

Exam registration requires that class registration is approved in the same semester. Compulsory activities from previous semester may be approved by the department.

Admission to a programme of study is required:
Economics (MSØK)
Economics (MSØK/5)
Financial Economics (MFINØK)

Required previous knowledge


Course materials

Announced at the beginning of the term.

Credit reductions

Course code Reduction From To
SØK8617 10.0 01.09.2010
More on the course



Version: 1
Credits:  15.0 SP
Study level: Second degree level


Term no.: 1
Teaching semester:  AUTUMN 2020

No.of lecture hours: 4

Language of instruction: Norwegian

Location: Trondheim

Subject area(s)
  • Financial Economics
  • Economics
  • Social Sciences
Contact information
Course coordinator:

Department with academic responsibility
Department of Economics



Examination arrangement: Home examination

Term Status code Evaluation form Weighting Examination aids Date Time Digital exam Room *
Autumn ORD Home examination 100/100

Release 2020-11-24

Submission 2020-11-24

Release 09:00

Submission 15:00

Room Building Number of candidates
Spring ORD Home examination 100/100

Release 2021-06-09

Submission 2021-06-09

Release 09:00

Submission 15:00

Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

More on examinations at NTNU