CEU, Economics Department

Lecturer: Prof. István Kónya
Course: 1 credit


The course is designed for advanced PhD and MA students who have a solid background
in micro- and macroeconomics. You need to be familiar with dynamic optimization, both in
discrete and continuous time. International economics is a plus, Obstfeld-Rogoff is a good
reference book.

You will be given 2 homework assignments (15% each) and a final exam (65%). I expect
you to actively participate in lectures, you will receive 5% of your grade based on classroom
participation. It is good practice to read ahead with the material, so that you can deepen your
understanding at the lecture.

Course plan

1. Capital movements

(a) The open economy growth model and empirical facts (2 lectures)

(b) Credit constraints (2 lectures)

(c) Sovereign risk (2 lectures)

(d) Currency crisis (2 lectures)

2. Labor movements
(a) The basic migration model and empirical facts (2 lectures)

(b) Brain drain (1 lecture)

(c) Ethnic networks and international trade (1 lecture)

Reading list


M. Obstfeld and Kenneth Rogoff (1996), "Foundations of International Macroeconomics",
The MIT Press, Cambridge MA

Robert Barro and Xavier Sala-i-Martin (2003), "Economic Growth", The MIT Press,
Cambridge MA