Course - Open economy macroeconomics - SØK8631
Open economy macroeconomics
New from the academic year 2025/2026
About
About the course
Course content
This course studies macroeconomics in small open economies, i.e. situations where a country is too small to affect the world market, and so takes international prices and interest rates as given and independent of national policy. A key distinction is made between those sectors that compete internationally (traded sectors) and those that do not (non-traded sectors). Topics include the exchange rate determination in small open economies, the balance and development of the traded versus the non-traded sector, monetary policy, and how the petroleum sector influences economic activity and its composition.
Learning outcome
Knowledge
You learn
- How monetary and fiscal policy affect nominal and real exchange rates
- How the exchange rate is affected by temporary and permanent economic disturbances ("shocks")
- How the balance between the sheltered and exposed sectors depends on economic policy and the petroleum sector
- How interest rates should be set in a small open economy
- How fiscal policy works in a small open economy
Skills
You should be able to
- Explain key theories and models suitable for studying macroeconomic issues in small open economies
- Analyze a wide range of macroeconomic policies using relevant economic models
General competence
You should be able to
- Read and understand reports and research articles related to the topics discussed in the course
- Apply the course content in your own independent academic work, such as your master’s 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 is not taught every semester. Check courses that are taught at https://www.ntnu.no/econ/valgfrie-masteremner.
Compulsory assignments
- Mandatory activity
Further on evaluation
Compulsory activity must be completed in the semester the course is taught. The approval also applies to later semesters.
Recommended previous knowledge
Bachelor's degree in Economics
Required previous knowledge
None
Course materials
Announced at the beginning of the term.
Subject areas
- Economics
- Social Sciences
Contact information
Examination
Examination
Ordinary examination - Autumn 2025
School exam
The specified room can be changed and the final location will be ready no later than 3 days before the exam. You can find your room location on Studentweb.