Emerging economies face a variety of distinct macroeconomic challenges that set them apart from their rich-world counterparts. They tend to be more dependent on commodity exports, they are more integrated into global trade, and they are more dependent on international finance. As a consequence of these and other distinctive features they tend to be more volatile and to suffer more frequent economic and financial crises. This module describes these empirical differences, presents a rigorous analytical framework for thinking about the macroeconomies of emerging economies, and analyses models that help us to understand them. In analysing the structural features of emerging economies we discuss macroeconomic policy, economic dualism, natural resource dependence, and industrialization. We highlight the role of credit and debt, both national and international, and analyse the variety of financial crises that bedevil emerging economies. The module focuses on understanding economic mechanisms and the intuitions underlying economic models. The mathematics content is low and where possible, models will be explored using diagrammatic techniques.
Module assessment - more information
One 4,000-word essay (100%)