Macroeconomics of Development

Recommended Prerequisites

Macroeconomics I; Macroeconomics II; Economic Policy and English Language skills

Teaching Methods

Lectures on the different contents of the course and tutorials based on students guidance’s in the presentation and discussion of a proposed paper and comment/discussion of two other papers.

Learning Outcomes

This course aims to provide a rigorous analytical framework for the treatment of the main macroeconomic problems that a developing economy faces, such as the public budget, the domestic financial system and the foreign exchange rate regime. Based on a macroeconomic model designed for developing economies, students will learn to: i) identify structural macroeconomic features; ii) understand and model macroeconomic mechanisms and iii) analyse the macroeconomic policies resulting from the model.

Work Placement(s)

No

Syllabus

1. Importance of short-term macroeconomic performance for economic growth and main macroeconomic characteristics of developing economies

2. Fundamental macroeconomic model of a developing economy

3. Public finance and macroeconomic performance

4. Financial system and macroeconomic performance

5. Foreign exchange rate policy

6. Seminars (taught in English)

       Seminar 1: Exchange Rate Regimes for Emerging Economies

       Seminar 2: Equilibrium Real Exchange Rates and Currency Wars: The Euro, the Dollar, and the Renminbi

       Seminar 3: Banking Crises and Exchange Rate Crises in Emerging Economies

Head Lecturer(s)

António Manuel Portugal Duarte

Assessment Methods

Assessment
Commment of two other proposed papers: 20.0%
Written analysis, presentation and discussion of a proposed paper : 30.0%
Exam: 50.0%

Final Assessment
Exam: 100.0%

Bibliography

Montiel, Peter (2011): Macroeconomics in Emerging Markets, 2^nd ed., Cambridge: Cambridge University Press.

Stiglitz, Joseph. E., José António Ocampo, Shari Spiegel, Ricardo French-Davis and Deepak Nayyar (2006): Stability with Growth. Macroeconomics, Liberalization and Development, Oxford University Press.

 

Rickards, James (2011), Currency Wars: The Making of the Next Global Crisis, Portfolio Penguin, New York.

 

Gagnon, Joseph and Marc Hinterschweiger (2011), Flexible Exchange Rates for a Stable World Economy, Peterson Institute for International Economics, Washington, D.C..

 

Williamson, John (2000), Exchange Rate Regimes for Emerging Markets: Reviving the Intermediate Option, Institute for International Economics, Washington.