ECONOMIA INTERNAZIONALE / INTERNATIONAL ECONOMICS
The course aims at providing students with strong knowledge about the way the economic theory treats crucial questions related to financial and real globalisation and about the difficulties encountered in interpreting the real world. The course deepens both real and financial aspects of the international economy. Concerning the real aspects, two often ignored constraints to global economy will be examined, which seriously undermine the possibility of verifying persistent periods of growth: one constraint is linked to the demographic evolution across the world, the other one to the limitation of exiting sources of energy available to fuel the economy. Both constraints are analysed jointly following a multi-scale and multi-level approach (MuSIASEM). The financial analysis presents some traditional theory leading to standard view about the way financial capital, interest rates, foreign exchange rates and current account should reach the equilibrium. These traditional instruments are then challenged by focusing on case studies taken from recent economic events, such as the Asian crisis, the emerging countries growth, the debt crisis in Europe, which are hardly captured by conventional wisdom. Students attending the course will participate to the last part of the program actively by collecting data in order to produce descriptive empirical analysis and a final report which aims at shedding light on some specific issues.
The program is divided into a common program (parts 1 to 3) and a differentiated program (parts 4 and 5). All students must prepare parts 1 to 3 for the exam. Students not attending the lessons must prepare part 4 and exclude part 5. Attending students exclude part 4 and actively participate to the workshops to learn how to collect and analyse data on macroeconomic variables (part 5). Some of the issues treated in of part 4 of the program will still be presented and discussed during the lessons, even though attending students (provided that they are truly present during the lessons) do not have to prepare them for the final exam.
1. The balance of payments accounting and derived identities (G: 5, 6)
1.1. Definitions, accounting principles, current account, capital account. (G:5)
1.2. Identities derived from BoP and national accounts (G:6)
2. Real constraints to the global economy
2.1. Demografic change and economic performance (GMA: 2)
2.2. Energy and biophysical analysis of the economy (GMA: 3)
3. Equilibrium in global markets
3.1. The Foreign Exchange Market (G:2.1-2.6, 15.2)
3.2 PPP, UIP, CIP, efficiency (G:15.1 excluding 15.1.1, 4)
3.3. Current account and financial market equilibrium: the Stock-Flow approach (15.3.3)
4. For student that do not attend the lessons: Analysis of crises and problems
4.3. The Asian crisis of 1997-98 (RS).
4.4. Emerging countries financing developed world (GS).
5. For students attending the lessons: Workshops with data
5.1. Collecting data on the computer room
5.2. Trade balance, current account and net foreign position
5.3. Analysis of financial intensity and interdependence across national economies.
5.3. Investigation on the roots of European countries’ economic troubles.
1. [G] G. Gandolfo, International Finance and Open-Economy Macroeconomics, Springer, 2001.
2. [GMA] M. Giampietro, K.Mayumi, A.H. Sorman, The metabolic pattern of societies, Routledge, 2012, pp. 22-61.
3. [GS] B. Greenwald and J.E. Stiglitz, A modest proposal for international monetary reform, in S.Griffith-Jones, J.A. Ocampo, J.E. Stiglitz (Eds.), Time for a visible hand, Oxford University Press, 2010, pp. 314-344.
4. [RS] S. Radelet and J. Sachs, The East Asian financial crisis: diagnosis, remedies, prospects, Brooking Papers on Economic Activity, 1998, pp.1-78.