Course content

This course studies macroeconomics in situations where countries are interdependent, so that what happens in one country or region affect other countries and regions, and vice versa. Topics include the dynamic approach to the current account, how the world interest rate is determined, how fiscal policy work in dynamic models, how different productivities in different countries affect the exchange rates between these countries, how and where economic activity is localized, and the trade and capital flows among different regions of the world.

Learning outcome

Knowledge

You learn

• How the current account balance can be understood as a dynamic optimization problem

• How the exchange rate is affected by productivity differences between and within countries

• How fiscal policy works when today's policy affects future public debt

• How the global interest rate is related to which countries have surpluses and deficits in the current account balance

• How economic activity can give rise to clustering

• How labor and capital flow between different countries and regions

Skills

You should be able to

• Explain key theories and models suitable for studying macroeconomic issues in countries that interact with each other

• Analyze a wide range of macroeconomic policies using relevant economic models

General competence

You should be able to

• read and understand research articles and public reports dealing with issues discussed in the course 

• use the content of the course in your own academic work such as your master thesis 

Learning methods and activities

2 hours of lectures every week. The course has compulsory activities. Specific requirements will be announced at the beginning of the term. The term papers can be written as a joint project. The course is an optional master's course and is not taught every semester. Check courses that are taught at https://www.ntnu.no/econ/valgfrie-masteremner. Students enrolled in ISØ's master programs can take the course any semester. Contact the department (kontakt@econ.ntnu.no) to get access to learning resources.

Specific conditions

Recommended previous knowledge

Bachelor's degree in Economics

Required previous knowledge

None

Course materials

Announced at the beginning of the term.

Credit reductions