Focuses on the international dimension of macroeconomic policy, particularly monetary, fiscal, and exchange rate policy, and on the determination of the current account balance, national income, and inflation. Special attention is given to developing countries and other small open economies, defined as those for whom prices are determined on world markets. Models of devaluation include those that focus on the price of internationally traded goods in terms of non-traded goods. A major overall theme is countries' choice of monetary regime, particularly the degree of exchange rate...
Read more about API-120: Advanced Macroeconomics for the Open Economy I