Professional Career Programme (PCP) Syllabus for ... - Keio University

Faculty of Economics, Keio UniversityIS-LM Analysis, Aggregate Supply, and Aggregate DemandII. Basic Concepts in Open Economy MacroeconomicsSmall Country Assumption, Stock vs. Flow, The Balance of Payments,The Exchange Rate, The Interest Rate Parity ConditionIII. Theories of Exchange Rate DeterminationPurchasing Power Parity, Stock Equilibrium Approach,Flow Approach, The Marshall-Lerner Condition, The J-curve EffectIV. The Mundell-Fleming ResultsThe M-F Result and the Structure of the Model --- a Simple Model,The M-F Result under Fixed Exchange Rates,Alternative Assumptions: Two-Country, Imperfect Capital Substitution,The M-F Result under Flexible Exchange Rates,Alternative Assumption: Two-CountryV. The Speed of Adjustment of Endogenous Variables and OvershootingVI. Economic Interdependence and Choice of Exchange Rate RegimesOPEN ECONOMY MACROECONOMICSa(PCP)Lecturer :Sahoko Kaji, ProfessorCourse Description:This class is offered to undergraduate students participating in the Professional CareerProgramme (PCP), Master’s level graduate students and exchange students.The purpose of this class is to introduce basic concepts and basic analytical frameworksof Open Economy Macroeconomics, and to encourage students to apply them inthinking about real-world issues. Students who attend this class are assumed to havesufficient knowledge of entry-level macroeconomics and microeconomics.Each week, at the beginning of class, students take turns presenting what they learned inclass a week ago. Students who are not presenting that week are expected to activelyparticipate in others' presentations by asking questions and making comments. Allstudents should also actively participate in the lecture that follows the students'presentations, by asking/answering questions and making comments.Evaluation is 50 % by class participation/presentations and 50 % by final examination.Textbooks:Lecture Notes: http://ocw.dmc.keio.ac.jp/economics/index.htmlReference Books:・ Canzoneri, M. and D. Henderson (1988) “Is Sovereign Policymaking Bad?”PCP Syllabus 15