Professor Philip Lane
Email:plane@tcd.ie
http://www.philiplane.org/EC4100
EC4100 International Economics: Module in International Macroeconomics
The course textbook is Rob Feenstra and Alan M. Taylor, International Economics, Worth Publishers, 2008 [acronym FT]. In addition, the reading list below includes an assortment of journal articles and other readings. The tutorial is on Wednesdays 4pm-5pm in 2041A. My office hours are 2-4 on Wednesdays. There will be an essay assignment this term which counts 10 percent towards the overall grade: the assignment will be due on Friday March 26.
FT, Chapter 16.
Gian Maria Milesi-Ferretti (2009), "Changing Fortunes," Finance & Development (March).
Philip R. Lane and Gian Maria Milesi-Ferretti (2007), "The External Wealth of Nations Mark II," Journal of International Economics, November.
FT, Chapter 13
FT, Chapter 14
FT, Chapter 15
Kenneth Rogoff (1996), "The Purchasing Power Parity Puzzle," Journal of Economic Literature 34, 647-668.
Alan Taylor and Mark Taylor (2004), "The Purchasing Power Parity Debate," Journal of Economic Perspectives 18(4), 135-158.
Kenneth Froot and Richard Thaler (1990), "Foreign Exchange," Journal of Economic Perspectives 4(3), 179-192.
The Economist (2009), " Crash and Carry," Economics Focus, December 9th 2009 issue.
Gabriele Galati, Alexandra Heath and Patrick McGuire (2007), " Evidence of Carry Trade Activity," BIS Quarterly Review (September), 27-41.
Kenneth Rogoff (2002), " The failure of empirical exchange rate models: no longer new, but still true," Economic Policy Web Essay.
FT, Chapter 17
Robert Lucas (1990), "Why Doesn't Capital Flow from Rich to Poor Countries," American Economic Review 80, 92-96.
Kenneth French and James Poterba (1991), "Investor Diversification and International Equity Markets," American Economic Review 81, 222-226.
Graciela Kaminsky, Carmen Reinhart and Carlos Vegh (2004), "When it Rains, it Pours: Procyclical Macropolicies and Capital Flows," NBER Macroeconomics Annual 2004.
Eswar Prasad, Raghu Rajan and Arvind Subramanian (2007), "The Paradox of Capital," Finance & Development [March].
M. Ayhan Kose, Eswar Prasad, Kenneth Rogoff and Shang-Jin Wei (2009), " Financial Globalization: A Reappraisal," IMF Staff Papers, 2009.
FT, Chapter 18
FT, Chapter 19
FT, Chaper 21
Milton Friedman (1953), "The Case for Flexible Exchange Rates," in Essays in Positive Economics, University of Chicago Press, 1953.
Michael Mussa (1990), Exchange Rates in Theory and Reality, Princeton Essays in International Finance No. 179.
Maurice Obstfeld and Kenneth Rogoff (1995), "The Mirage of Fixed Exchange Rates," Journal of Economic Perspectives.
Philip R. Lane (2009), "Ireland and EMU," mimeo, Trinity College Dublin.
Olivier Blanchard (2007), "Adjustment within the Euro: The Difficult Case of Portugal," Portuguese Economic Journal 6(1), 1-22.
FT, Chapter 20
FT, Chapter 22 (Section 4)
Carmen Reinhart and Kenneth Rogoff (2009), "The Aftermath of Financial Crises," American Economic Review 99, 466-472.
The Economist (2010), " Default Settings," Economics Focus, March 31st Issue.
FT, Chapter 22 (Section 3)
Olivier Blanchard and Gian Maria Milesi-Ferretti (2009), "Global Imbalances: In Midstream?," IMF Staff Position Note SPN/09/29.
Maurice Obstfeld and Kenneth Rogoff (2009), "Global Imbalances and the Financial Crisis: Products of Common Causes," mimeo, Harvard University.
20 pages (12 point font, double-spaced, 1 inch margins) on one of the following topics
Should Ireland have joined the euro?
Is China's Current Account Surplus Optimal?
Should Developing Countries Impose Controls on Capital Flows?
Why Do Foreigners Invest in the United States?