ECO_51060_EP - International Economics (2025-2026)

This course introduces students to International Economics. It combines theory and empirics to provide a better understanding of globalization and related policy discussions. The course has two parts: international trade and international capital flows.

In the first part, we will look at empirical regularities in trade flows and traditional theories of international trade. We will also discuss how Global Value Chains are formed and why they matter. Finally, we will present trade policy (especially tariffs) and their welfare impact.

The second part addresses international capital flows and exchange rates. We will review traditional theories of current account imbalances, and factors explaining their persistence. We will discuss how current account adjustment affects economies under fixed and flexible exchange rates. Finally, we will study nominal exchange rate determination and public policy in single-currency regimes.