Global Macroeconomic Challenges, 7.5 credits

Contents

The course focuses on major macroeconomic challenges shaping today’s global economy. It explores issues of sustainable debt accumulation, the dynamics and recurrence of sovereign and private debt crises, and the conditions necessary for domestic and international financial stability. A central theme in the course is the analysis of structural imbalances in international trade and capital flows, including persistent current account divergences, global savings-investment mismatches, and the role of financial globalization. The course also covers the roles of fiscal and monetary policy in addressing these challenges, as well as conflicts between economic policy objectives. By combining economic theory and case studies of recent global and regional crises, the course provides a framework for understanding contemporary macroeconomic policy debates.

Expected learning outcomes

After completing the module, the student is expected to be able to:

Knowledge and understanding

1. explain key macroeconomic theories related to debt development, financial stability and international trade and financial imbalances

2. explain the distinct roles of fiscal and monetary policy in stabilising the economy and the challenges that arise when they interact in an open economy

3. identify fundamental mechanisms behind debt crises and describe how different historical cases can be analysed using macroeconomic models

4. describe the forces which drive international capital flows and determine trade imbalances, as well as understand the consequences of the flows and imbalances on economic stability

Competence and skills

5. analyse macroeconomic policy responses to financial crises using theoretical models

6. evaluate the specific trade-offs between monetary interventions and changes to fiscal policy frameworks during periods of instability

7. translate global macroeconomic reports into localized risk assessments

8. assess how the projected development scenarios will impact different societal actors and economic sectors

Judgement and approach

9. evaluate the sustainability of national and international debt and trade imbalances by integrating macroeconomic indicators with institutional constraints

10. assess the ethical and economic trade-offs of policy interventions, specifically regarding their distributional impact on vulnerable groups in society during periods of macroeconomic crisis

Required Knowledge

22,5 credits in economics and Mathematics 3b/3c or Mathematics Further level 1b or 1c or Mathematics C or equivalent. Proficiency in English equivalent to the Swedish upper secondary course English 6/level 2.

Form of instruction

Learning is supported by classroom teaching and seminars.

Examination modes

The examination consists of an individual written assignment, seminars and an individual written hall exam.

The following grading scale will be used for the course: Pass with Distinction (Väl Godkänd, VG), Pass (Godkänd, G) and Fail (Underkänd, U).

The course grade is based on a summary assessment of the results of the included examinations and is set when the module has finished, and all examinations have been assessed. To receive the grade of Pass (G) for the module, it is required that all examinations are passed.

A student who does not pass the first examination will be offered an opportunity to sit a re-examination within two months. An additional examination opportunity is normally offered every academic year, one week prior to the start of the autumn term. If required by specific circumstances, other forms of examination may be used.

A student that has failed an examination on two occasions has a right to have another examiner or grading teacher appointed, unless there are special reasons against it. A written request addressed to the Director of Studies should be made no later than two weeks before the next examination opportunity.

Exceptions from examination form as stated in the syllabus can be made for a student who has a decision on pedagogical support for disabilities. Individual adaptations of the examination form should be considered based on the student's needs. The examination form shall be adapted within the framework of the expected learning outcomes stated in the course syllabus. At the request of the student, the course responsible teacher, in consultation with the examiner, must promptly decide on the adapted examination form. The decision must then be notified to the student.

Academic integrity and cheating

As a student, you are expected to act with academic integrity. This means writing and presenting within the limits of the academic rules and expectations as communicated in the university's regulations and what is otherwise specified by the responsible department. Disciplinary action may be taken against students who use unauthorized help aids or in some other way try to mislead on a test or on another type of task for examination. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to written assignments. Submitted material may be subject to plagiarism control. In addition, Umeå University rules and regulations for education and research apply.