​My Notes and Materials (PDF)

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Module 0: Review Materials

(No need to do this in advance, but when we need this info, you'll know to find it here)

Time Paths: Fundamentals (PDF 01​) and Intermediate (PDF 02)

AS-AD Basics: (PDF 03)

The Law of One Price: (PDF 04)

"Hat Algebra": (PDF 05)

Practice Problems

AS-AD Analysis and Time Paths: download

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Module 1: Open Economy Fundamentals

Budget Constraints and Open Economy Identities

Open Macro Accounting (PDF 10)

 

Two period model and business cycles

CA Dynamics Domestic Business Cycles (PDF 11)

Two Period Endowment Model Summary and Notes (PDF 12)

 

Savings, Investment and Current Accounts in Small Open Economies

CA Dynamics Savings and Investment (PDF 13)

How Savings and Investment Can DRIVE Trade Deficits (PDF 14)

 

Large Open Economies

Large Open Economies (PDF 15)

 

Special Topics: Large/Persistent Imbalances, Twin Deficits, and Sudden Stops

Sudden Stops (PDF 16)

Large Open Economies USA (PDF 17)

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Practice Problems

PP 01 Open Economy Basics - download

PP 02 Two Period Endow Open Macro Model - download

PP 03 Open Economy Loanable Funds Analysis - download

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EXAM 1 - THURS, FEB 26 in class  (Answer Key)

 

Module 2: Money, Policy and Open Economies

Nominal Exchange Rates and Purchasing Power Parity (PPP)

Intro Law of One Price and PPP (PDF 21)

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Money Markets, FOREX Markets and Interest Parity

Real_Money_Market_Basics (PDF 32)

FOREX Market (PDF 33)

Money Forex and Time Paths Two Examples (PDF 34)

Increase Domestic M Unant & Ant (PDF 35)

Increase Foreign M Unant & Ant (PDF 36)

Open Economy Monetary Policy (PDF 37)

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Fixed Exchange Rates

General E 01 Basic S&D Analysis in FOREX Mkt (PDF 38)

General E 02 Advanced S&D Analysis in FOREX Mkt (PDF 39)

General E 03 R and FIXED (PDF 40)

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Empirical Projects

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Software Installation Guide (R, GitHub, Positron): download

Country List (Students and Selected Countries): download

Data: download

Initial R Code for everyone: download

Full R Code for everyone: download

Project 1 for Module 1: download

 

Project 2 for Module 2: download

Full R Code for Proj 2: download

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Special Topics

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Real Exchange Rates: PPP and Real Exch Rate (PDF 22)

​Terms of Trade: Terms of Trade (PDF 23)

Traded and Nontraded Goods: Exchange Rate Overshooting

The Role of NonTradables (PDF 24)

​Choosing Exchange Rate Regimes

Brief Intro to Exchange Rate Regimes (PDF 31)

​Choosing Exchange Rate Regimes and OCA (PDF 41)

Detecting Exchange Rate Intervention (PDF 42)

The Open Economy Policy Trilemma (PDF 43)

Special Topic Trilemma one-pager (PDF 44)

Sterilization and Risk Premia (PDF 45)

Special Topic Sterilization Challenge (PDF 46)

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Practice Problems

PP 04 Money and FOREX - download

PP 05 Supply and Demand FOREX - download

PP 06 Special Topics - download

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EXAM 2 - TUES, May 5 at 10:30AM in TH 116

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Appendix

Two period model with Investment (PDF APP 01)

T-NT Model details and derivations (PDF APP 02)

Two Country Large Open Econ Model (PDF APP 03)

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