international economy

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The international economy is a branch of economics . It deals with political and economic relationships and their effects on goods and financial markets and thus depicts the economic theoretical part of globalization . In addition, business management issues with an international reference in connection with economic methods (microeconomics, institutional economics, modern political economy) are analyzed.

Foreign economic theory

The Trade Theory deals with the role of external economic relations for the prosperity of modern economies. In addition to the theoretical approaches of real economic and monetary foreign trade theory and policy, the importance of institutional arrangements such as free trade agreements, exchange rate systems and economic and monetary unions is discussed and deals with the long-term real economic development of modern economies. In addition to the neoclassical growth theory, the modern approaches of the theory of endogenous growth and microeconomic innovation models are presented. One focus of the research is on the importance of external trade relations for growth and the analysis of the increasing integration of the world economy.

Monetary and currency policy

Monetary policy and currency policy deals with the importance of the national and international monetary and currency order for the development of modern economies. One focus is the analysis of monetary policy cooperation within the framework of the European Union and exchange rate policy in the transition countries. The theory is particularly important for questions relating to the functioning of monetary unions, the efficiency of a uniform monetary policy and the disadvantages that can arise especially for economically weak countries. In the current discussion, the question is increasingly how the European Monetary Union should react to the increasing national debt of some member states. This also includes the question of the coordination of the common economic policy, but in particular the design of the common monetary policy by the European Central Bank.

Macroeconomics

International macroeconomics describes the theory of macroeconomic variables that are used in particular by economic research institutes to examine, describe and assess the economic situation of an economy. The reference values ​​include in particular the economic situation, the current labor market situation and the inflation rate. In order to narrow down the term macroeconomics further, it is advisable to first relate it to microeconomics.

Microeconomics

Microeconomics describes the theory of microeconomic variables and, in addition to examining the individual behavior of economic subjects. It also describes economic behavior at household and company level and their interactions. Competition theory is one of the main topics. To the more recent developments of the More Economic Approach, which increasingly brings the economic perspective into the focus of political and legal decision-making bodies. This mainly includes the work of the Monopolies Commission, the regional cartel authorities and, as higher-level institutions, the economics ministries of the individual states and the Federal Cartel Office.

Empirical Research in Economics

Empirical economic research is primarily methodical and deals with the fundamentals and application-specific problems of economic issues from an analytical and statistical point of view. The econometric methods constitutive for this subject are not limited in their application to specific content-related issues, but can be used in wide areas. The main concern of econometrics is to analyze the direction of action and the strength of the connection between economic relationships.

International financial market theory

International financial market theory examines the relationships between exchange rates, investments and the effects on international trade. She uses microeconomic models and theories to determine, for example, optimal currency areas. As a branch of research, one can point to the important theory of optimal currency areas by Mundell, who defined a number of optimality criteria.