A collection of different currencies: U.S. dollar ($), Euro (€), Great Britain pound (£), Danish krone (Kr), Czech koruna (Kc). (Image courtesy of Jan Brasna.)
This course is an introduction to the theory of international trade and finance with applications to current policy issues. In this course we will cover the basic tools to understand what determines the flow of goods across countries, i.e. international trade, and what determines the flow of savings and investments from one country to another, i.e. international finance. We will also cover applications to a number of topics of current interest, including the debate on globalization, free trade agreements, the U.S. current account deficit, the medium run prospects for exchange rates, European integration, and the debate on global financial architecture following the financial crises in East Asia and Argentina.
For any use or distribution of these materials, please cite as follows:
Guido Lorenzoni, course materials for 14.54 International Trade, Fall 2006. MIT OpenCourseWare (http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].