International Monetary Theory & Policy

The International Monetary Theory and Policy 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 and, more recently, the worldwide crisis that began in 2008; the appropriate exchange rate regime, a question of particular interest for the euro area, but also for many emerging market and developing economies; the causes and consequences of large trade deficits and surpluses, an issue that often gives rise to political pressures for protectionism; and the appropriate role of international institutions like the IMF, especially in their actions during economic and financial crises. Courses in this field offer theories that give students frameworks for understanding issues, present recent and historical experiences that provide a context for the use of economic models, and statistical methods that enable students to use the theories and analyses for their own work.