Open Economy Macroeconomics

Third year module

Lecturer: John Fender

The first section of the course discusses the law of one price, purchasing power parity and covered and uncovered interest parity. The second section considers the Mundell-Fleming model and the Dornbusch overshooting model. The third section is devoted to policy related issues, such as target zones, speculative attacks on fixed exchange rate regimes and the East Asia financial crisis.

Learning outcomes

On completion of this module the student will be able to demonstrate an understanding of open economy macroeconomics, including an understanding of a number of open macroeconomic models and of related policy issues.


2hr written examination 80%, 2 x problem sets 20%