Prof. Jeffrey Frankel COURSE OVERVIEW API 120: Macroeconomic Policy Analysis I August 31, 2015 Prof. Jeffrey Frankel COURSE OVERVIEW

Teaching Fellow: Martin Wachs Course Assistants: Maria Carpanelli, Prabhat Mishra, Miguel Jaramillo and S. Ozair Ali Faculty Assistant: Minoo Ghoreishi, Belfer 505 384-7329 Lectures: Mon. & Wed., 2:45-4:00 pm, L140 (& Fri., 9/4/13) Review Sessions: Fridays:  8:45-10:00 & 10:15-11:30 am, L230  Final exam: Monday, Dec.14, 3 p.m.- 6 p.m. If you can’t take the exam that day, or the mid-term, don’t take the course. Grading: Problem sets 25% (7 of them); mid-term exam 25%; final exam 50%. Who can take the course? MPA/IDs, for whom it is designed. One or two others to whom I have given permission, at their own risk.

Expectations for Classroom Behavior Please be on time. Bring your name card. Fixed seating chart, same as in other MPA/ID classes (from Wednesday). No side conversations. Eat responsibly. Leave class for emergencies only. No electronics in class unless specifically permitted. Cell phones off.

Topics: Devaluation and the Trade Balance The Mundell-Fleming Model III. Money and Inflation IV. Integration of Goods Markets V. Small Open Economies VI. Currency Regimes VII. Integration of Financial Markets Exchange Rate Determination To be continued in API-119, Feb. 2016: IX. Emerging Market Crises X. Portfolio Diversification

APPENDIX: Overview of Models & Assumptions

Empirical Evidence

Overview of Models and Assumptions (concluded)