C-301: Trade and Open Economy Macroeconomics - II (100)

1. The Open Economy Revisited

The Mundell–Fleming Model; The Small Open Economy under Floating Exchange Rates and
Fixed Exchange Rates. (Chapter 13, Mankiw, N. G. (2016). Macroeconomics)
2. Understanding Consumer Behavior
John Maynard Keynes and the Consumption Function; Irving Fisher and Intertemporal Choice;
Franco Modigliani and the Life-Cycle Hypothesis; Milton Friedman and the Permanent-Income
Hypothesis; Robert Hall and the Random-Walk Hypothesis. (Chapter 16, Mankiw, N. G. (2016).
Macroeconomics)
3. Government Debt and Budget Deficits
The Mechanism of financing budget, Size and Determinants of Deficits, Debt-financed Deficits;
Tax Rate Changes and Budget Deficits; Fiscal Stimulus and Deficits; Deficits; Money Growth
and the Inflation Tax; Money Finance on the Budget Deficit; Introduction of Wealth Effect; Bond
Finance of the Deficits and Crowding out; The Burden of Debt; Measuring the Government Debt;
The Traditional View of Government Debt; The Ricardian View of Government Debt; Other
Perspectives on Government Debt. (Chapter 19, Mankiw, N. G. (2016). Macroeconomics)
4. International Trade: Theories and Policies.
Why Everybody Trades; Classical, Neo-classical, New and New New Trade Theories; Gains
from Trade; Growth and Trade; Economic Integration, Free Trade Agreement (FTA), Customs
Union, etc., Regional Trade Agreement (RTA); Trade, Trade Policy-tools, RTA and WTO -
Bangladesh Perspective. (Chapter 2-7, Thomas A. Pugel. (2012). International Economics and
Slides on Trade Policy)
5. International Financial Management
Exchange Rate; Exchange Rate Regimes, Balance of Payments, Current Account, Capital and
Financial Account, Official Reserve Assets, Statistical Discrepancy; Foreign Exchange Market;
International Money Market; International Credit Market; International Bond Market;
International Stock Market; Exchange Rate Determination; Exchange Rate Movements and
Equilibrium; Influence on Exchange Rate; Exposure to Exchange Rate Fluctuations. (Slides from
Jeff Madura. (2018). International Financial Management)
6. International Lending and Financial Crises
Global Financial and Economic Crisis; How the Crisis Happened; Causes and Amplifiers
(Miscellaneous)

Books Recommended

1. Mankiw, N. G. (2016). Macroeconomics, 9th Edition.

2. Thomas A. Pugel. (2012). International Economics, 16th Edition.
3. Jeff Madura. (2018). International Financial Management, 13th Edition.
4. Paul R. Krugman, Maurice Obstfeldand Marc J. Melitz. (2018). International Economics: Theory
& Policy, 11th Edition.