1. Jeffrey Frankel, Harpel Professor of Capital Formation and Growth Harvard Kennedy School COURSE OVERVIEW API 120: Macroeconomic Policy Analysis I

2. 2 Teaching Fellow: Tilahun Emiru Course Assistants: Jing Zhao & ________ Faculty Assistant: Minoo Ghoreishi, Belfer 505 384-7329 Lectures: L140, Mon. & Wed., 2:40-4:00 pm (& Fri., 9/6/13) Review Sessions: Fri., 8:40-10:00 & 10:10-11:30 am, L140 Final exam: Monday, Dec.16, 2 p.m.- 5 p.m. –If you can’t take the exam that day, or the mid-term, don’t take the course. Grading : Problem sets 25% (8 of them), mid-term exam 25%; final exam 50%. Who can take the course? –MPA/IDs, for whom it is designed. –One or two others, to whom I have given permission, and at their own risk.

3. 3 Class meeting guidelines The same expectations for classroom conduct reviewed in other MPA/ID classes apply here too. –E.g., be on time. Use name placards. Fixed seating chart, same as in other classes. Drop boxes for all MPA/ID assignments –on 2 nd floor of Littauer behind the Forum Screen. –Assignments must be turned in by 1pm on the day they are due. Assignments will be returned via mail folders in the MPA/ID area. Problem set handouts will be placed at both sides of the classroom. Lectures will start on time.

4. 4 Topics: I.Devaluation and the Trade Balance II.The Mundell-Fleming Model III. Money and Inflation IV. Purchasing Power Parity V. Small Open Economies VI. Exchange Rate Regimes VII. Integration of Financial Markets VIII. Exchange Rate Determination IX. Emerging Markets X. Portfolio Diversification

5. 5 APPENDIX 1: Overview of Models & Assumptions

6. 6 Empirical Evidence

7. 7 Overview of Models and Assumptions (concluded)

8. Appendix 2: Lectures by Topic

9. Lectures by Topic (continued)