Course Outline/Methodology
November 12 -- Balance of Payments, Introduction to Exchange Rates
Balance of Payments -- Most Important
Final Exam Question
Other Balance of Payments
November 17 -- Determinants of Exchange Rates
Most Important Readings
The index is based on the theory of purchasing-power parity, which says that exchange rates should eventually adjust to make the price of a basket of goods the same in each country.
Burgernomics shows Switzerland has the most overvalued currency
The US dollar surged again on
Other Readings
What do burger prices tell us about the reliability of official inflation figures?
Introduction to Macroeconomics
Chapter 9 in Wheelan provides a good introduction to GDP and some of the issues that come up in macroeconomics -- final exam question
Chapter 10 in Wheelan -- good overview of the U.S. Federal Reserve and contemporary monetary issues -- final exam question
If you haven't had economics before, the chapters in Eggert bring you up-to-speed.
GDP, National Accounts
Macroeconomic Theory -- Most Important
Final Exam Question
updates -- Keynesians vs Monetarists Paper -- Final Exam Question
Other Macroeconomic Theory
good contrast of macroeconomic approaches in European context
Keynesian Liquidity Trap -- very good, macroeconomics part of class
PROBLEMS OF KEYNESIAN ECONOMICS
Monetary Policy
The remarkable demand for low-yielding government bonds
Final Exam Question
Most Important Readings
Other Readings
New government priorities and an enthusiasm for unconventional monetary policy are changing the way the currency markets work
The New Economic Club Will Produce Conflict Not Cooperation
How policymakers can avoid the perils of the 1930s, final exam question
Good -- argues develuation is the only way to save the currency -- international monetary system part of class
Final Exam Question
euro area lacks access to sufficient capital to deal with the potential scale of a full blown regional debt and banking crisis
IMF, World Bank Section
monetary systems part of class
The strategy proposed here rests on two pillars. First, a novel policy tool called the excessive reserve procedure (ERP) should be implemented to discourage reserve accumulation beyond prudent levels. Second, the need for precautionary reserve holdings should be reduced via unremunerated reserve requirements (URRs). Such a dual strategy would go a long way toward stabilizing and ultimately reducing the ratio of foreign exchange reserves to global GDP.
very good, add to list for system reform
final exam question
The major contentious issue on the G-20’s agenda has recently been the problem of global imbalances. This refers to chronic, excessively large current account imbalances that are considered detrimental to global economic and financial stability.
The euro has fallen 4% against the dollar since November 4 on concerns over debt sustainability in peripheral euro-area members. The slide follows a 20% rally in the euro fuelled partly by worries over US money supply expansion. Markets are unsure which to fear most -- a new round of US 'quantitative easing' or further deterioration in peripheral euro-area sovereign debt.
A widespread currency war is in prospect. The term was first introduced by Guido Mantega, the finance minster of Brazil. He envisaged the International Monetary Fund (IMF) developing an index that measures whether currencies are held artificially low to boost exports (popularly referred to as “currency manipulation”) -- Final Exam questions.
December 8/10 -- Current Economic Crisis, Foreign Aid, and Future of the World System (all of the readings below will be on the final exam)
Ongoing Global Crisis
Future/Global Governance
December 18
FINAL EXAMINATION Gl - 130-133, 8-9:50