This field focuses on the macroeconomic performance of countries that are integrated with the world economy both through trade in goods and services and through the exchange of assets.
A central concern is the way in which world financial markets contribute to growth and development as well as serve as a means by which economic disruptions may be transmitted across national boundaries. Some of the issues addressed include:
- exchange rate and financial crises like those in Asia and Latin America in the 1990s;
- the appropriate exchange rate regime, a question recently addressed in the move towards a single European currency;
- the causes and consequences of large trade deficits, an issue that is currently facing the United States; and
- the appropriate role of international institutions like the IMF.
Courses in this field offer both theory that provides students with frameworks for understanding issues and presentation of timely policy issues and recent experience that provides a context for the use of economic models.
The International Monetary Theory and Policy field of study requires the completion of a minimum of three courses.