Macro and trade policy

This is a module on Macroeconomics for the PhD Economics class at the Lahore School of Economics. It focuses on the intersection of international trade and macroeconomics. The module studies how international macroeconomic models with trade microfoundations can shed new light on long-standing and novel questions in international economics. Furthermore, the module also analyzes the academic literature on trade policy, in accordance with World Trade Organization (WTO) rules and regulations and recommended practices. We will confront theories with empirical evidence and pay special attention to the roles of producer entry and exit in domestic and international markets, and firm heterogeneity in shaping aggregate fluctuations and economic policy outcomes. Topics covered will also include, among others: international trade and macroeconomic dynamics with producer entry, exit, and heterogeneity; comparative advantage and macroeconomic interdependence; WTO regulations, WTO recommended trade practices; FDI, offshoring, and international business cycles; global value chains; labor market frictions and the consequences of trade integration; structural reforms and their interaction with trade policy; and various issues related to trade policy.