ECN320 International Macroeconomics

Credits (ECTS):5

Course responsible:Roberto Javier Garcia

Campus / Online:Taught campus Ås

Teaching language:Engelsk

Course frequency:Annually

Nominal workload:

125 hours distributed as:

26 lecture hours, exercise sessions and final exam review session; and

100 hours in self study (reading, preparation for exercises and final exam)

Teaching and exam period:This course starts in August block. This course has teaching/evaluation in August block.

About this course

The course covers macroeconomic theory applied in an open-economy context. Sustainability in a macroeconomic sense is concerned with persistent external imbalances that result in debt and domestic macroeconomic instability. The underlying relationships of the balance of payments (current and capital accounts), trade flows and the exchange rate, capital flows and the exchange rate, and changes in output from changes in key macroeconomic indicators (inflation rates, interest rates, employment, etc.) are given particular attention. Another theme is how macroeconomic policy (fiscal and monetary) is used to affect these indicators and how, in turn, changes in these indicators, or expectations, can elicit a macroeconomic policy response. Issues related to the type of exchange rate regime, optimal currency areas, and the degree of capital mobility are given emphasis. General equilibrium analysis is featured to cover the relationships among various macroeconomic variables (aggregate demand, output, interest rates, exchange rates, inflation, employment, etc.). For a full description, follow the link:

Learning outcome

Knowledge and general competence:

The student is expected to develop:

* An appreciation of the complex relationships between macroeconomic indicators and the foreign exchange markets, and the interrelationships among asset/money, goods, and foreign exchange markets;

* An understanding of the implications of a government's macroeconomic policy (fiscal and monetary) under different exchange rate regimes and under different capital mobility scenarios, and the economic implications of the policy choices from each;

* The ability to relate theoretical concepts to real-world macroeconomic situations and the implications from events such as monetary union in the eurozone, the global financial crisis, the Covid-19 pandemic and to assess macroeconomic policy response to those situations.

Students will be able to consult the economics literature to further their understanding of the concepts and to have a critical understanding of macroeconomic theory and its limitations.

Students should be able to use and apply economic reasoning and models to analyze the consequences of macroeconomic imbalances (trade and capital flows) that result from changes in key macroeconomic indicators (aggregate demand, aggregate supply, interest rates, exchange rates, inflation, etc.) and macroeconomic policy (fiscal policy and monetary policy).


The course will reinforce group learning through assigned tasks that address contemporary problems and interpreting results from graphical analysis.

  • Learning activities include:

    1. Self study: Students are expected to read the assigned material prior to lectures or exercise sessions. Presentation slides are made available as are short videos with tips for the exercises and short clips of some lecture summaries.

    2. Lectures: Informal student-instructor interaction is encouraged during lecture sessions. Lectures (and reading material) are considered critical for solving exercises.

    3. Exercises: 2-3 group exercises are required and will require presentation of graphical analysis and/or short written summary on a key topic demonstrating command of relevant theory and models. Participation is required.

  • The teacher has office hours, and is available to discuss topics and assignment activities. The instructor is available during exercise sessions for consultations. E-mail correspondence is an appropriate means to seek further consultation and feedback.
  • Final written in-class examination (3 hours) accounts for 100% of the grade.

  • An external examiner will examine the curriculum and the approve the examination.
  • There are 2-3 in-class group exercises. Exercises can be worked on individually or in selected groups. Presentation is mandatory during exercise sessions and during question/answer sessions. For those who choose to work independently, exercise solutions and answers to questions can be sent in for approval via e-mail. In-class exercises require participation. If not present, the student must submit the exercise that is assigned with answers to the related questions. Mandatory activities are valid in the same semester the course is being taken and in the next semester.
  • The course is in English. Incoming students can contact student advisors at the School of Economics and Business ( for admission to the course.
  • There are eight lecture/exercise sessions that last 3 hours each (24 hours total), there is an optional 2-hour lecture session for those who need a review of trade policy, and a 2-hour final exam review session.
  • Minimum requirements for entrance to higher education in Norway (generell studiekompetanse).