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Text
Krugman, Paul, and Maurice Obstfeld. International Economics: Theory and Policy. 6th ed. Boston, MA: Addison Wesley, 2003. ISBN: 0201770377.
Abbreviated "KO" in the table below.
Handouts support the course lectures and are used in addition to the course readings. They are provided when available.
Course readings.
| LEC # |
TOPICS |
READINGS |
| I. International Trade: The Basic Tools |
| 1 |
International Trade and Gains from Trade (PDF)# |
|
| 2-3 |
The Ricardian Model (PDF)# (Courtesy of Tatiana Didier. Used with permission.) |
KO. Chapter 2. |
| 4-5 |
The Specific Factors Model |
KO. Chapter 3. |
| 6-7 |
The Standard Trade Model
Globalization and Inequality (PDF)#
The Transfer Problem |
KO. Chapter 5.
Globalization and Inequality
Kremer, Michael, and Eric Maskin. "Globalization and Inequality." 2003. (PDF)#
The Transfer Problem
Keynes, J. M. "The German Transfer Problem." Economic Journal 39 (1929): 1-7.
Ohlin, B. "The German Transfer Problem: A Discussion." Economic Journal 39 (1929): 172-182. |
| 8-9 |
Trade Policy - Tariffs |
KO. Chapter 8. |
| II. The Political Economy of Trade and Controversies on Globalization |
| 10 |
Debate I: Globalization and Inequality |
Mcmillan, Margaret, Karen Horn Welch, and Dani Rodrik. "When Economic Reform Goes Wrong: Cashew in Mozambique." Brookings Trade Forum (2003): 97-151.
Williamson, Jeffrey G. "Globalization and Inequality, Past and Present." World Bank Research Observer 12, no. 2 (1997): 117-35.
Rodrik, Dani. "The Debate over Globalization: How to Move Forward by looking Backward." In Launching New Global Trade Talks: An Action Agenda. Edited by Jeffrey J. Schott. Institute for International Economics, Special Report 12, Washington, DC, 1998.
Krugman, Paul. "Is Free Trade Passé?" Journal of Economic Perspectives 1, no. 2 (Autumn 1987): 131-144.
Krugman, Paul. "A raspberry for free trade." Slate (November 20, 1997). |
| 11 |
Trade Policy and Development |
KO. Chapters 9-10. |
| 12 |
Midterm |
|
| III. Open Economy Macroeconomics: Intertemporal Trade |
| 13-14 |
Intertemporal Trade and the Current Account (PDF)# |
KO. Chapter 12.
Obstfeld, Maurice, and Kenneth Rogoff. Foundations of International Macroeconomics. Chapter 1. Section 1.1-1.3. Cambridge, MA: MIT Press, 1996. ISBN: 0262150476. |
| 15-16 |
The U.S. Current Account and the Dollar |
Obstfeld, Maurice, and Kenneth Rogoff. "The Unsustainable U.S. Current Account Position Revisited." National Bureau of Economic Research, NBER paper no. 10869, November 2004.
Blanchard, Olivier, Francesco Giavazzi, and Filipa Sa. "The U.S. Current Account and the Dollar." MIT Working Paper, 2005. "A survey of the world economy." The Economist, September 24, 2005. |
| IV. International Capital Markets |
| 17 |
The Foreign Exchange Market |
KO. Chapter 13. |
| 18 |
Hedging Currency Risk (PDF)# |
|
| V. Open Economy Macroeconomics: Short-Run Adjustment and Crises |
| 19-20 |
Money and Exchange Rates (PDF)# |
KO. Chapter 14.
|
| 21-22 |
The Mundell Fleming Model and Exchange Rate Regimes |
Blanchard, Olivier. Macroeconomics. Upper Saddle River, NJ: Prentice Hall, 2003, chapters 19-20 and 21. ISBN: 0130671002. |
| 23 |
Debate II: Emerging Market Crises, the Role of the IMF |
|
| 24-26 |
Financial Crises, Currency Crises |
KO. Chapters 17 and 22.
Obstfeld, Maurice. "The Logic of Currency Crises." 1994.
DeLong, J. Bradford. "The International Financial Crises of the 1990s: Analytics." 2001.
Calvo, Guillermo. "Explaining Sudden Stops, Growth Collapse and BOP Crises: The Case of Distortionary Output Taxes." NBER Working Paper 9864 (2003). |