International Macroeconomics

Understanding the methods of analysis and basic concepts of thinking in open at economy macro-economics at an intermediate level. Understanding the interdependence between different national markets (relating to th BoP) and understanding the international interdependence between different economies.

• Balance of Payments (terms, objectives, compositon), errors and omissions, position of the BoP within national accounting

• Theories explaining the BoP: elasticity approach, absorption appraoch, monetary approach (including consequences for macroeconomic policy with fixed and flexible exchange rates, resp.), feedbacks between BoP and national revenue, external equilibrium, BoP-equilibrium and BoP-automatics

• Connections between monetary and real perspective, pegged (fixed) and flexible exchange rates: definitions, theories, forward markets and short-term international capital movements

• Stability problem of the theory of speculation, long-term international capital movements: financial ("portfolio") investments and direct investments ("mutlinationals")

For more details we refer to UniGrazOnline.