International Macroeconomics

LYOSB19 (Available for all periods: 14:30 - 15:30)

  In a global economy, a country’s economic performance depends not only on developments within its own borders but also on economic conditions and policy decisions abroad. International trade, capital flows, exchange rates, and economic policies link national economies in many ways, and understanding these links is essential for making sense of economic development around the world. This course introduces students to the fundamental concepts of international macroeconomics and provides a foundation for understanding how the world economy works.

  The course begins with the key concepts of macroeconomics. Students will learn how economists measure a country’s economic performance and will study topics such as Gross Domestic Product (GDP), economic growth, inflation, unemployment, the money supply, and monetary policy. Building on this foundation, the course then turns to the international economy. Topics include why countries trade with one another, how comparative advantage shapes trade patterns, what determines exchange rates, how fixed and floating exchange rate regimes differ, the balance of payments and the current account, international capital flows, and countries’ external financing needs. The course also examines the causes of financial crises, their effects on banking systems and financial markets, and how crises spread from one country to another through international economic linkages.

  Throughout the course, students will consider a range of important questions. How can we tell whether an economy is growing? Does economic growth always create more jobs? How are inflation and unemployment measured? Why do prices rise, and what tools do central banks use to control inflation? Why do countries benefit from international trade? What determines the value of a country’s currency? How do fixed and floating exchange rate systems differ? Why do countries run current account deficits, and how are these deficits financed? Why can an interest rate decision by the US Federal Reserve affect the Turkish economy? What causes financial crises, how do problems in the banking system affect the wider economy, and how can a crisis that begins in one country spread to others? Finally, why do some countries grow faster than others, and how do economic developments affect people’s living standards?

  These questions will be addressed through real-world examples from Türkiye and other countries, economic data, graphs, basic calculations, and classroom discussion. Particular emphasis will be placed on interpreting economic indicators, comparing economic performance across countries, and analyzing the relationships between economic variables. Students will also be encouraged to evaluate economic claims critically and recognize that a relationship between two variables does not necessarily imply causation.

  By the end of the course, students are expected to understand the fundamental concepts of international macroeconomics and the economic relationships that connect countries. They will also gain a better understanding of the causes and consequences of financial crises, strengthen their ability to interpret economic news, and develop the skills needed to analyze global economic developments using economic indicators and data.