Open economy macro (2012-13): Part I (Economic growth and international finance)
Instructor: Nicola Borri (Luiss University)

Textbook

The following textbooks are required readings for this course. I will distribute the slides of my lectures and some articles discussed in class.

Jones, Macroeconomics, 2008, Norton & Co (chapters 1-3).

Uribe and Schmitt-Grohe, Lecture notes in international macroeconomics (external link) [only chapters covered in class]

Contents

This course will start with facts and models on long run economic growth. Then, I will introduce international macroeconomics models and apply them to the study of the current account, international flows, global imbalances and exchange rates.

The second part of the course will be taught by Prof. Paolo Epifani and will focus on globalization and competitiveness. Please, refer to his webpage for more information on the second part of the course.

Syllabus

1. Economic growth: stylized facts; growth accounting; Solow model; convergence; extensions of Solow model (Required readings: Jones, chapters 1-3).

2. International macroeconomics: global imbalances, theory of the current account, external adjustment, twin deficts and current account imbalances (Required readings: Uribe-Schmitt-Grhoe).

Detailed syllabus [pdf]

Class journal (updated during course)

Lecture # 1: Economic growth. Facts. Growth accounting [slides]

Lecture #2: The Solow model. Golden Rule. [slides]

Lecture #3: The Solow model with labor augmenting technology and other extensions. Practice problems. [slides - practice]

Lecture#4: Practice problem and discussion on Solow model.

Lecture#5: Global imbalances [slides]

Lecture#6: The theory of the current account [slides]

Lecture#7: Current account in a production economy [slides]

Lecture#8: External adjustment (small and large economies) [slides]

Office hours: after class or send me an email to set a meeting time.