The first part focuses on models of international trade theory, dealing with the causes and consequences of trade and trade policy under perfect and imperfect competition. The second part, involving student presentations, deals with selected topics and contemporary issues (e.g., monetary systems, optimal currency areas, the Euro, financial crises, sovereign default).

After this class students should have a sound knowledge of the main theories of international trade and exchange rate determination, understand their empirical implications, and beable to apply them to real worldissues and questions of economic policy relevance. The main part of the course focuses on models of international trade theory, dealing with the causes and consequences of trade and trade policy under perfect and imperfect competition.

Mid-term test (units 1-5; 60 minutes; 30%), final test (units 7-11; 60 minutes; 30%), two presentations (each 20%). A positive joint mid-term and final test (50% threshold of total points) and positive presentations are required for passing the class. There will be one retake exam at the end of term covering all units.

Presentations:
i) end of units 2-5, 7-11: students present articles from magazines (e.g., The Economist) of their choice (related to international economics), 5-10 minnutes
ii) end of term: groups of up to 3 students present one or two papers of their choice, 20- 30 minutes, short handout (1-2 pages).
For each presentation there will be assigned discussants and an open discussion.

During the registration period, students will be placed on a first-come, first-serve basis. Once registration closes, more seats will be made available. Students from the waiting list will then be placed based on their cohort. Students from an older cohort will be placed before students from younger cohorts. If you are registered, but do not intend to take the class, we ask you to deregister during the registration period. There is no guarantee for a seat in this lecture!

Good knowledge of microeconomics, macroeconomics, mathematics; knowledge in econometrics is helpful.

Institute for International Economics

harald.badinger@wu.ac.at
birgit.meyer@wu.ac.at