Academic year
2020/2021 Syllabus of previous years
Official course title
Course code
LM5700 (AF:330634 AR:176132)
ECTS credits
Degree level
Master's Degree Programme (DM270)
Educational sector code
2nd Semester
Course year
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This module complements International Political Economy mod. 1, held by Prof. Spiganti. It contributes to the fulfilment of the program’s learning objectives in the field of economics for the "Americhe", "Asia orientale" and "Europa orientale" tracks. This module aims at integrating the first module by touching topics such as the theory of international trade, international trade policies, exchange rates, and international macroeconomic policy. The course is entirely taught in English.
The course provides students with some basic theoretical tools useful to illustrate what are the reasons explaining trade patterns among countries, what are the gains from trade, what mechanisms determine the exchange rate between currencies and the relationship between interest rates, exchange rates and money supply. Students will be able to apply the tools provided to the analysis of issues concerning trade policies and international macroeconomic policy. At the end of the course, students should have acquired:

1) knowledge of the main trade models and on the empirical evidence supporting them
2) the ability to evaluate the costs and benefits of the instruments of trade policies
3) knowledge of the arguments in favour and against free trade
4) knowledge of the main marcoeconomic goals in an open economy
5) advantages and disadvantages of different monetary systems and the monetary trilemma that policy makers face
6) the ability to critically analyse topics related to trade and international monetary policies
It is expected that students have acquired at least 6 CFU in Economics in their Bachelor degree.
The knowledge of the basic principles of economics is an advantage. The knowledge of the topics touched within module 1 (by prof. Spiganti) is a pre-requisite for module 2.
International trade and trade policies
- The Ricardian model
- The specific factors model
- The Heckscher-Ohlin model
- The standard trade model
- Tariffs and quotas
- The political economy of trade policy

Topics in open macroeconomics and international macroeconomic policies
- National income accounting and the balance of payments
- Exchange rates and the foreign exchange market
- Money, interest rates, and exchange rates
- International monetary systems

1) "Economia internazionale 1: Teoria e politica del commercio internazionale". Paul R. Krugman, Maurice Obsfeld, e Marc Melitz. Editore: Pearson Education Italia, 11a edizione.

2) "Economia internazionale 2: Economia monetaria internazionale". Paul R. Krugman, Maurice Obsfeld, e Marc Melitz. Editore: Pearson Education Italia, 11a edizione.

If needed, references to additional teaching material (articles, reports, slides, etc.) will be provided in class.
A final written exam will be taken to assess the acquisition of the targeted knowledge. This will count towards 50% of the final score of the course.
Frontal lectures and discussions in class.

This subject deals with topics related to the macro-area "Poverty and inequalities" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development

Definitive programme.
Last update of the programme: 24/01/2021