ECO 504 MACROECONOMICS 11

1. Open economy macroeconomics and policy design

2. Extensive treatment of open economy macroeconomics

• Mundell-Fleming model in small and large open economies

• Exchange rate regimes

• Effectiveness of monetary and fiscal policy under alternative assumptions of capital mobility and exchange rate regimes

• Covered and uncovered interest rate parity

• Capital flows

• International policy coordination

3. The macroeconomic policy debate and the design of macroeconomic policy

• The macroeconomic policy debate

• Activism versus passivism

• Rules versus discretion