Emerging Markets (CI60905)

General information

Type:	OP	Curs:	1	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
	Carolina Villegas Sanchez	Economía, Finanzas y Contabilidad	ENG

How do national economies evolve and interact in a globalized world? This course focuses on the economic forces and the policy responses that are relevant for business and investment strategies in emerging markets.

Specific topics include:
- the meaning and measures of national and international economic activity;
- what determines which emerging markets develop and grow, while others stagnate;
- what drives business cycles, how they are propagated globally, and how government policy responds;
- monetary policy decisions and their effect on financial institutions and credit markets;
- government liabilities and how markets react to government debt;
- what determines trade deficits and surpluses, the relative strength of a currency;
- and poverty and inequality considerations.

The course provides an overview of these topics that can be equally useful to support business planning, investment strategies, and/or policy analysis.

There is no formal prerequisite for the course but you would greatly benefit from some previous knowledge in international macroeconomics.

The aim of the course:
- Deepen your understanding of the way the global economy is evolving by considering current topical issues.
- Gain further experience in economic analysis and develop knowledge in international development.
- Explore the behavior of financial markets and the general business background as well as the issues facing governments in their policy choices.

This course provides in-depth analyses of major economic challenges facing emerging markets. The objective is to provide students with limited previous exposure to the subject with a basic conceptual framework and practical knowledge regarding investments and macroeconomic conditions in emerging markets. The course covers the essential elements of investment decisions in emerging markets as well as basic institutional and macro policy issues affecting emerging markets.

1. Main Drivers of Economic Development

2. Financial Globalization: Determinants and Impact of Capital Flows to Emerging Economies

3. Exchange Rate Crises: Mexican Peso Crisis

4. Financial Liberalization and Speculative Bubbles: The Asian Crisis

5. Contagion and the Role of Banks

6. Deficits and Debt: Sustainability and Solutions

7. Poverty and Inequality

The sessions will be divided between lectures, article presentations and Harvard cases.

ASSESSMENT BREAKDOWN

Course Material:

Feenstra and Taylor (3rd edition): International Macroeconomics. Textbook background on most issues in class.

The reading list includes books, academic papers and research reports produced by private and public sector entities as well as Harvard cases.

Group	Teacher	Department
	Carolina Villegas Sanchez	Economía, Finanzas y Contabilidad