Programme And Module Handbook
Course Details in 2021/22 Session

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Module Title LH Open Economy Macroeconomics
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 08 03579
Module Lead John Fender
Level Honours Level
Credits 10
Semester Semester 2
Restrictions Available to all students who have been allowed onto the final year of a degree programme in the Department of Economics (including Joint Honours) or who have passed 29189 Macroeconomics.
Contact Hours Lecture-20 hours
Guided independent study-80 hours
Total: 100 hours

The purpose of the module is to discuss some of the implications of the fact that the economy is open for the behaviour of the macroeconomy. 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, as well as more recent developments. 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 students should be able to:

  • demonstrate systematic knowledge and understanding  of theories and concepts in open economy macroeconomics;
  • critically analyse, using appropriate techniques, some static and dynamic open macroeconomic models;
  • critically appraise policy related issues in open economy macroeconomics.
Assessment 03579-01 : Exam : Exam (Centrally Timetabled) - Written Unseen (100%)
Assessment Methods & Exceptions Assessments: 2 hour written unseen examination (100%)
Reassessment: N/A
Other Duplicate of Dubai-based module 08 30418
Reading List The main textbook for the course is L. Copeland, Exchange Rates and International Finance, Prentice Hall, 6th Edition, 2014. Students will be advised of additional recommended reading in the lectures