• Develop critical perspectives on fundamental arguments about economic and social policies
• Understand the key macroeconomic variables, models and their interrelations.
• Think critically about fiscal, monetary and currency policies and the impact of trade on an economy.
• Understand how to incorporate income inequality and climate change in regular international economics models.
• Argue on different choices for policies in an open economy.

Course content:

The beginning of the 21st century marks a period of growth and challenge to developing and developed economies. In this course, we will learn the basic tools to understand how to analyze economic phenomena.
The main goal of the course is to present the main topics in macroeconomics and international economics. The focus will be on applications and policy implications instead of formal demonstrations. Ideally, students will leave the course with a critical perspective on economic models and be able to apply their knowledge to many different situations. Critical thinking will be important, but students should also know the basic formal mechanisms of macroeconomic and international trade models.
The course is divided in two main modules.
Module 1. Modern Macroeconomics
We analyze the determinants of economic well-being in the short and long run. We start with key macroeconomic terms (for example, defining and measuring economic growth, inflation, and unemployment). We examine how the economy grows in the short and long run, the role of productivity, and the impact of the business cycle. We also explore the role of monetary and fiscal policies.
Students should be able to answer/understand the following questions/concepts:
-What do terms like GDP, CPI, or durable goods measures quoted in the newspapers
measure?
-What are the long-term sources of economic growth and why is productivity so important
to economists?
-- Why is it difficult for poor countries to catch up with developed economies?
-What causes a recession or recovery?
-Who counts in unemployment figures?
-What monetary and fiscal policies do countries have to manage the business cycle?
-What is inflation and why does it matter?
Module 3. Policy in the Open Economy
The course's final module analyzes the financial linkages between different countries, especially regarding the Balance of Payments and its effects on national economies. It also surveys the role of money and finance in the world today.
We examine the role of government policies toward the foreign exchange market, including the choice between fixed and floating exchange rates, strategies to keep currencies under or overvalued, and the use of exchange controls to create impediments to currency flows. Finally, we will incorporate climate change and income inequality in regular macroeconomic models. Students will also examine the development problems and the role firms can play in fostering growth.
Students should be able to answer/understand the following questions/concepts:
-How do individuals, firms, and states buy and sell currencies?
-What determines the value of currencies in the short and long runs? What does it mean for Denmark to be part of the ERM2?
-What choices do states have in setting their currencies? What tools do they employ?
-What different strategies for economic development have states pursued?
-What is globalization? How do current trends alter business today and your future career?
-How can we relate climate change to fiscal, monetary and currency policies.
-How do economic policies change income inequality and how societies should design better welfare systems?

6-week course.

Preliminary Assignment: The Nordic Nine pre-course is foundational for the summer university and identical for all bachelor courses. Students will receive an invitation with all details by the end of May. The assignment has two parts. 1.) online lectures and tutorials that student can access at their own time and 2.) one synchronous workshop which will be offered both online and in-person at several dates and times before the official start of the summer university courses. Sign-up is first come first serve. All students are expected to complete this assignment before classes begin.

Mandatory readings:

Zeidan R. (2018) Economics of Global Business, MIT Press.

Case study Chapter 3 – Reconstruction Aid and Economic Outcomes

Case study Chapter 3 – Refugees, adjustment costs and long-run development

Case study Chapter 3 – The macroeconomic impact of migration

Case study Chapter 4 – Identifying stagflations

Case study Chapter 5 – Spain Financial Crisis

Case study Chapter 5 – The output and fiscal impact of financial crises

Case study Chapter 6 – The emergence of the loanable funds (credit) market in Europe

Case study Chapter 7 – Monetary and fiscal policy in Canada

Case study Chapter 8 – Implementation of fiscal policy

Case study Chapter 9 – Exchange rate movements following shocks in commodities prices

Case study chapter 10 – War reparation and its effects

Case study chapter 11 – China’s Belt and Road Initiative

Case study Chapter 11 – The Importance of Institutions, The Case of Pakistan

Case study Chapter 11 – To fix or not to fix the case of commodities producers

Case study chapter 12 – Piketty and Wealth Inequality R before G, Except After C

Case study chapter 12 – Pre and post transfer income inequality

Case study Chapter 13 – Poverty alleviation and the environment in Africa

Case study Chapter 15 – Managing a currency crisis and Turkey in 2018

Additional relevant readings:

GDP Fetishism (Joseph E. Stiglitz) - 2009_GDP_Fetishism.pdf.

Economic Growth vs. Economic Development – (http:/​/​www.diffen.com/​difference/​Economic_Development_vs_Economic_Growth)

GDP and its Importance: ( http:/​/​www.investopedia.com/​articles/​investing/​121213/​gdp-and-its-importance.asp)

Optional: Long-Term Growth of the U.S. Economy: Significance, Determinants, and Policy. ( https:/​/​pdfs.semanticscholar.org/​6b9f/​fb8defe21aa91259a37a4319f5eaa01b9236.pdf)

Optional: Rethinking Macroeconomics.pdf (Joseph Stiglitz)

For richer, for poorer _ The Economist.pdf

China unlocks right kind of growth - FT.pdf

GDP and the US Economy: 3 Ways to Measure Economic Production ( http:/​/​mic.com/​articles/​14943/​gdp-and-the-us-economy-3-ways-to-measure-economic-production)

China's GDP Examined: A Service-Sector Surge ( http:/​/​www.investopedia.com/​articles/​investing/​103114/​chinas-gdp-examined-servicesector-surge.asp

Optional: People in Emerging Markets Catch Up to Advanced Economies in Life Satisfaction: Asians Most Optimistic about Future, Middle Easterners the Least ( http:/​/​www.pewglobal.org/​2014/​10/​30/​people-in-emerging-markets-catch-up-to-advanced-economies-in-life-satisfaction/​)

Long Run Trend Rate of Growth ( http:/​/​www.economicshelp.org/​blog/​5105/​economics/​long-run-trend-rate-of-growth/​)

Is economic growth permanently lower? ( http:/​/​blogs.ft.com/​gavyndavies/​2014/​10/​26/​is-economic-growth-permanently-lower/​) 

Optional: Long−Run Economic Growth: An Interdisciplinary Approach. ( https:/​/​business.illinois.edu/​working_papers/​papers/​01-0121.pdf)

Optional: Institutions as the Fundamental Cause of Long-Run Growth ( http:/​/​ciep.itam.mx/​~rahul.giri/​uploads/​1/​1/​3/​6/​113608/​institutionslongrungrwth_acemoglujohnsonrobinson_ch6handbkofecongrwth2005.pdf) 

The curse of weak global demand - FT.pdf

Understand Business Cycle– Upward-Boom, Downward-Bust– Economic Movements-Shifts: Critical for Good Decision-Making ( http:/​/​bizshifts-trends.com/​2013/​04/​18/​understand-business-cycle-upward-boom-downward-bust-economic-movements-shifts-critical-for-good-decision-making/​)

Inflation targeting.pdf

Optional: THE QUANTITY THEORY OF MONEY: ITS HISTORICAL EVOLUTION AND ROLE IN POLICY DEBATES - advance-QTM.pdf

Optional: QTM short and long run.pdf

Optional: Inflation_Targeting_Overview.pdf

Optional: Money and Inflation (http:/​/​www.cfeps.org/​pubs/​wp-pdf/​WP12-Wray.pdf)

Radical cures for unusual economic ills - FT.pdf

Optional: The financial cycle and macroeconomics: What have we learnt? (http:/​/​www.bis.org/​publ/​work395.pdf)

Optional: The Evolution of Economic Understanding and Postwar Stabilization Policy ( http:/​/​www.kc.frb.org/​publicat/​sympos/​2002/​pdf/​S02RomerandRomer.pdf)

Improving public finances is both a moral and technical challenge - FT.pdf

Alan Blinder_ Our Fiscal Policy Paradox – WSJ.pdf

Alan Blinder_ The Long and Short of Fiscal Policy – WSJ.pdf

UK government spending_ Back to the future - FT.pdf

Fiscal policy should not be decided by simplistic rules – FT

Brazil a tale of two countries.pdf

The battle over the public finances will define Britain - FT.pdf

Optional: CHINA Economic Growth and Rebalancing.pdf

Optional: The People Republic of China Potential Growth Rate - Long Run Constraints.pdf

Optional: The curious case of Brazil’s closedness to trade (http:/​/​www.voxeu.org/​article/​brazil-s-closedness-trade)

US-Korea Trade.pdf

China’s current-account surplus_ Fair play or foul_ _ The Economist.pdf

6 Factors That Influence Exchange Rates ( http:/​/​www.investopedia.com/​articles/​basics/​04/​050704.asp)

Purchasing Power Parity: Link Between Exchange Rates and Inflation ( http:/​/​economics.about.com/​od/​purchasingpowerparity/​a/​ppp.htm)

Will China Fund the World's Next Round of Economic Expansion? ( http:/​/​www.forbes.com/​sites/​anaswanson/​2014/​10/​26/​will-china-fund-the-worlds-next-round-of-economic-expansion/​)

Optional: The Age of Chinese Capital.pdf

Optional: Does the Exchange Rate Regime Matter for Inflation and Growth? (http:/​/​www.imf.org/​external/​pubs/​ft/​issues2/​)

Emerging markets_ No longer crawling _ The Economist.pdf

De Facto Classification of Exchange Rate Regimes and Monetary Policy Framework ( https:/​/​www.imf.org/​external/​np/​mfd/​er/​2006/​eng/​0706.htm)

Optional: Case Study: The Breakup of the Bretton Woods System ( http:/​/​2012books.lardbucket.org/​books/​policy-and-theory-of-international-finance/​s15-07-case-study-the-breakup-of-the-.html)  

Optional: Exchange Rate Regimes - Classification and Consequences.pdf

Optional: Key Issues in International Monetary and Financial Reform: A Personal Record of the Conference: IFS.pdf

Optional: Exchange Rate Regimes in the Modern Era.pdf

Free exchange_ Horns of a trilemma _ The Economist.pdf

China’s balance of payments: current and capital accounts now pulling in different directions ( http:/​/​www.simontaylorsblog.com/​2012/​09/​18/​chinas-balance-of-payments-current-and-capital-accounts-now-pulling-in-different-directions/​)

People’s Bank of China_ The charm of the BBC _ The Economist.pdf

Optional: Country Report Brazil ( https:/​/​economics.rabobank.com/​publications/​2014/​february/​country-report-brazil/​)

Optional: LATIN_AMERICA_TOPICS_10-01-13.pdf

The global monetary system_ Injured reserve _ The Economist.pdf

Optional: Independent Monetary Policy in a Very Open Economy.pdf

Optional: Maintaining Financial Stability in an Open Economy_ Sweden in the Global Crisis and Beyond.pdf

Optional: The global monetary system_ Not floating, but flailing _ The Economist.pdf