Economics

Since the mid twentieth century the German welfare state has seen public health outcomes improve with sustained economic growth. But when the pandemic forced governments round the world to consider imposing lockdowns, journalists portrayed the choice in stark terms: either protect the population or the “health” of the economy. Lock­downs were feasible, however, only where governments increased welfare spending substantially, and as the pandemic unfolded other significant links between health and the economy—in Germany, the importance of the biomedical industry, for instance—became patent. Each week, the course focuses on an aspect of the complex interplay between health and “economy” in the history of the German welfare state, arguably the oldest in the world. Topics include the establishment of social insurance; the German coal and chemical industries; the therapeutic revolution during the so-called golden age of the welfare state; population politics, including abortion law, in East and West Germany; surprising trends in public health outcomes in east and west Germany since reunification; and the challenges posed by population ageing and immigration. Along the way, the class discusses questions which the study of the welfare state raises and to which the pandemic has given renewed significance: How should governments act to improve public health outcomes? To what extent should they intervene in people's lives in pursuing such objectives?

This course provides a basic introduction to the study of economics in a practical way, looking at the application of economic theory in the modern world, emphasizing recent trends and developments and putting them in a historical perspective. Material is presented and discussed in seminar sessions, with one-to-one tutorials to develop ideas and understanding. Simulations are introduced as a way of developing awareness of economic issues.

In this course, the study of international economic relations is central. These relations involve the exchange of goods and services, factors of production, and financial flows across borders. International trade and financial flows are a strong force in international relations and politics. This course provides an introduction to trade flows, international specialization, and exchange. Neoclassical and modern trade theory are addressed before analyzing trade policy, international macroeconomics, and financial relations. Having established the link between financial and real economic variables, students turn to exchange rates, currency trading, and the global monetary system. The course pays special attention to the differences between developing and developed economies. Students build on their knowledge of macro- and microeconomics, narrowing in on the international aspects of both. Gains from trade and specialization are typically considered microeconomic topics, while international financial relations are macroeconomic in nature.

Students will learn the basic concepts and analytical tools of finance in both corporate finance and investments. Topics include time value of money, risk and return, financial institutions, efficient markets, valuation theory, capital budgeting, portfolio theory, and cost of capital. The goal of this course is to equip students with the essential tools to make solid financial decisions in business.