365 - ECO365 Topic 1 INTRODUCTION What is International...

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INTRODUCTION ECO365 T opic 1
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What is International Macro A branch of economics that deals with the determination of key economic variables like price level, output, interest rate, current account deficit, etc., in economies that are interlinked. Economies all over the world are linked with each other through Trade in goods, services and assets Movement of factors (capital and labour) International Macro develops an understanding of these linkages, thereby helping us understand how economic activity in one country affects other countries. 2 ECO365
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What is International Macro International Macro has three key elements : Countries have different currencies Countries lend and borrow Policy matters 3 ECO365
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What is International Macro International Macro has three key elements : Countries have different currencies Countries lend and borrow Policy matters Many different currencies are used in the world today. Why? What are the implications of using so many different currencies? What happens when the value of one currency against another is changed? 4 ECO365
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International Macro has three key elements : Countries have different currencies Countries lend and borrow Policy matters Today, capital is more mobile internationally than ever before - the scale of international financial transactions is immense. Why do these transactions occur? Who lends and who borrows? Who benefits? What are the costs? 5
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This note was uploaded on 02/24/2012 for the course ECO 365 taught by Professor Jordimondria during the Spring '08 term at University of Toronto.

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365 - ECO365 Topic 1 INTRODUCTION What is International...

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