Econ 445 Topics in International Macroeconomics                                     

Spring 2006

 

Course Description:  

This course examines contemporary issues in the international macroeconomics and finance. Topics to be covered include: (i) speculative bubbles, (ii) currency crises, (iii) foreign exchange intervention, (iv) the sovereign debt crisis, (v) globalization of financial markets, and (vi) disparities in international growth. The course will emphasize how basic economic reasoning can clarify and illuminate each of these issues.

Prerequisites: 

Econ 244, Econ 122, Econ 102 or Econ 103

Textbook:

The course does not follow a single textbook. However, I will assign background reading from Krugam and Obstfeld's International Economcs, a text many people used in Econ 244. Other reading material (e.g. lecture notes and articles) will be posted on this website.

Requirements:

Attendance at class is mandatory as I will cover material not contained in any text! The grade for the class will be based on class participation and presentations (20%), class presentations (40%), and a research paper (40%).

Reaching Me:

I can be reached by phone at x7-1570 or by email at evansm1@georgetown.edu. Office hours will be announced in the first class.

Provisional Course Outline:

The course is structured around a series of questions arranged under the following 4 headings. Class time will be split between the presentation of background material on the topic (by me), and student presentations advocating different viewpoints.  Lecture notes, readings and other material are available to enrolled students on the restricted  version of this web page. 

1.      Current State of the US and World Economy

                                      i.      Is current US Fiscal Policy Sustainable?

                                    ii.      Is there a Real Estate Bubble in the US? What will happen when it busts?

                                  iii.      Will the recent rise in Oil Prices trigger a world-wide recession?

 

2.      The Globalization of Financial Markets

                                      i.      What have been the main developments in world financial markets over the past 20 years?

                                    ii.      How should we measure financial integration?

                                  iii.      What are the benefits and costs of greater integration?

                                   iv.      Can we improve on the current international financial architecture?

 

1.      International Growth

                                      i.      Financial development and income are connected, but what is the driver?

                                    ii.      What happened to Japan?

                                  iii.      What will happen in China and India? Why should we care?

 

1.      Financial Crises

                                      i.      Is there a Sovereign debt crises?

                                    ii.      Where will the next currency crisis occur?

                                  iii.      Can anything be done to stop the next crisis from spreading around the world?