Objectives and competences
In this course students:
1. Systematically enhance their theoretical knowledge in the field of concepts, which are relevant for functioning of a small open economy and are able to apply it.
2. Gain the ability to apply their theoretical knowledge in complex practical problems in an open economy
3. Acquire approach to analysis of external consequences of national policy decisions and are able to critically evaluate it.
4. Make critical judgements based on a sound theoretical base.
Content (Syllabus outline)
1. Basic concepts of open economy
2. Balance of payments and its concepts
3. Exchange-rate and its concepts
4. Price adjustment with fixed and flexible exhange rates
5. Income adjustment mechanism and foreign repercussions
6. Economic policy in open economy (Swan diagram, Mundell – Flemming model)
7. Prices and output in open economy (AS curve and AD curve)
Learning and teaching methods
-lectures;
-case studies;
-seminar work
Intended learning outcomes - knowledge and understanding
Development of knowledge and understanding:
Students:
1. Acquire comprehensive knowledge in the area of open economy macroeconomics
2. Have a detailed knowledge of theories in the area of analysis of internal and external equilibrium
3. Are able to explain dynamic interconnections in the field of exchange rate regimes and policy
4. Develop skills to critically review national competitiveness policy
5. Learn how to analyse and synthesise different approaches in the field of economic policy in an open economy with changing conditions.
6. Are able to upgrade and design further analysis regarding business in an open economy
7. Are aware of personal and professional responsibility in the field of doing business in an open economy
8. Are able to demonstrate a critical ethical dimension in their work.
Cognitive/Intellectual skills:
Students:
1. Understand and apply critical analysis and theory development and their usability in solving real and abstract professional problems, without guidance.
2. Get the ability to search for and synthesize new information from the field of open economy economics in the literature and praxis and to place them in appropriate professional frame.
3. Can select appropriate techniques for complex problem solving and are able to evaluate the reliability, validity and significance of results gained.
4. Can identify key aspects of problem from different view points and are able to find solutions.
5. Can investigate contradictory information and reasons for this.
Intended learning outcomes - transferable/key skills and other attributes
Key/Transferable skills
Students:
1. Further develop skills and expertise in the use of knowledge in a specific working area.
2. Upgrade the ability to become an autonomous learner.
3. Upgrade the ability to apply information technology.
4. Upgrade the ability for team-work and team leadership.
5. Further develop their communication skills in an effective manner to effectively solve conflicts.
6. Can identify key aspects of problem from different view points and are able to find solutions.
7. Are efficient in self-evaluation.
8. Can select and manage information with minimal guidelines.
Practical skills:
Student:
1. Get practical experience in the field of considering internal and external equilibria at the same time
2. Is able to act autonomously with minimal guidelines and supervision.
Readings
1. Salvatore, D. 2016. International Economics. Trade and Finance. Wiley. 12. izdaja (ali katerakoli prejšnja).
2. Berg, H. 2016. International Finance and Open-Economy Macroeconomics. Theory. History and Policy. World Scientific.
Prerequisits
Prerequisits for attending the written exam are successfully completed courses Introduction to Economics and Microeconomics, and Macroeconomics I.
Additional information on implementation and assessment A positively evaluated seminar work is a precondition for undertaking the written exam.
Seminar work and written exam have to be positively evaluated in order to get a posititve grade.
