Kiel Advanced Studies Program 2014 - Macroeconomics in Open Economies

These notes and codes are from a course I taught with Prof. Giancarlo Corsetti at the Kiel Institute for the World Economy in 2014.

PART I. Real Exchange Rate Misalignment and Demand Imbalances (Days 1 and 2)

1 Cross Border Trade in Assets

Exercise

2 International Transmission and International Risk Sharing

Slides with Discussion of Model Derivation, Log-Linearisation and DYNARE Files

Accompanying Notes

DYNARE Code for the Two Country, Two Good Endowment Economy Model

Complete Markets

Financial Autarky

3 Adding Nontradables to the Model

Exercise

DYNARE Code for the Two Country, Four Good Endowment Economy Model (Including Nontradables)

Complete Markets

Financial Autarky

PART II. Nominal Rigidities in Open Economies (Day 3)

4 Producer Currency Pricing, Local Currency Pricing and Pricing to Market

Exercise

PART III. International Dimensions of Optimal Monetary Policy (Days 4 and 5)

5 Optimal Monetary Policy in Open Economies

Complete Markets and Producer Currency Pricing

Complete Markets and Local Currency Price Stability

The DYNARE files discussed in the classes run on DYNARE Version 4.4.2. You are not expected to run these files yourself before the class, nor will you be asked to run them in the class. No prior knowledge of MATLAB or DYNARE will be assumed.