I will calculate your semester grade by weighing each of the two one-hour examinations one unit, your class presentation (see last page) one unit, and your final examination two units. Additionally, I will raise your semester numerical score if you make an excellent contribution to class.

The two one-hour examinations are tentatively scheduled for Friday, October 2, and Friday, October 30. The final exam is Friday, December 18, 11:50 a.m.-1:40 p.m., in the classroom. Please bring blue books to class for examinations.

RELATIONSHIP OF THE COURSE TO OTHER INTERNATIONAL ECONOMICS COURSES

The prerequisite for this course is Economics 681 or equivalent. The course does not cover the same ground as, but is complementary to, International Economics (Economics 681), International Trade Theory and Policy (Economics 981), and International Markets and Agricultural Trade (Agec 840).

The major objective of the course is to help students acquire an analytical framework to examine contemporary international economic issues, such as the Asian economic crisis, international adjustment and reform in developing and transitional economies, U.S.-Japanese economic relationships, trade and income distribution, regional economic integration, the international monetary system, the U.S. balance of payments problem, the exchange rate system, and international balance of payments equilibrium and disequilibrium. The goal is to provide students with the background, experience, and tools for future analysis of international economic problems.

REQUIRED MONOGRAPHS

Morris Goldstein, The Asian Financial Crisis: Causes, Cures, and Systemic Implications (Washington D.C.: Institute for International Economics, 1998). ISBN 0-88132-261-X

Marcus Noland, Li-Gang Liu, Sherman Robinson, and Zhi Wang, Global Economic Effects of the Asian Currency Devaluations (Washington D.C.: Institute for International Economics, 1998). 0-88132-260-1

Dani Rodrik, Has Globalization Gone too Far? (Washington D.C.: Institute for International Economics, 1998). 0-88132-241-5

William R. Cline, Trade and Income Distribution (Washington D.C.: Institute for International Economics, 1998). ISBN 0-88132-216-4

Jeffrey A. Frankel, Regional Trading Blocs in the World Economy (Washington D.C.: Institute for International Economics, 1997). ISBN 0-88132-202-4

C. Randall Henning, Cooperating with Europe's Monetary Union (Washington D.C.: Institute for International Economics, 1997). ISBN 0-88132-245-8

Simon Wren-Lewis and Rebecca L. Driver, Real Exchange Rates for the Year 2000 (Washington D.C.: Institute for International Economics, 1998). ISBN 0-88132-253-9

Library articles.

PLAGIARISM

University policy is: "Plagiarism and cheating are serious offenses and may be punished by failure on the exam, paper, or project; failure in the course; and/or expulsion from the university. For more information refer to 'Academic Dishonesty' in Inside KSU."

REQUIRED READING ASSIGNMENTS

The Asian (and Latin American) Financial Crisis

Goldstein, The Asian Financial Crisis: Causes, Cures, and Systemic Implications [Read pp. 1-44 for Wed., Aug. 26, and pp. 45-72 for Fri., Aug. 28]

Noland, et al., Global Economic Effects of the Asian Currency Devaluations.

International Monetary Fund, "The IMF's Response to the Asian Crisis," http//www.imf.org/External/np/exr/facts/asia.HTM

Fischer, "IMF and Crisis Prevention," Financial Times (March 30, 1998), p. 6.

Gerald K. Helleiner, "Capital Account Regimes and the Developing Countries," in United Nations Conference on Trade and Development, International Monetary and Financial Issues for the 1990s, VIII (Geneva, 1997), pp. 7-31.

Guillermo Le Fort V. And Carlos Budnevich L., "Capital-Account Regulations and Macroeconomic Policy: Two Latin American Experiences," in United Nations Conference on Trade and Development, International Monetary and Financial Issues for the 1990s, VIII (Geneva, 1997), pp. 32-53.

Stabilization, Debt, and Reform (Mon., Sept. 14-Wed., Sept. 23)

Rudiger Dornbusch, Stabilization, Debt, and Reform (Englewood Cliffs, 1993), pp. 57-86.

Student presentation - "The new classical macroeconomics: its implications for international trade," in Dornbusch, Stabilization, pp. 87-93, and other sources.

Student presentation - "Credibility and stabilization," in Dornbusch, Stabilization, pp. 94-105.

Jeffrey D. Sachs, "External Debt, Structural Adjustment, and Economic Growth," in United Nations Conference on Trade and Development, International Monetary and Financial Issues for the 1990s, IX (Geneva, 1998), pp. 106-116.

Has Globalization Gone too Far?

Deepak Nayyar, "Globalisation: What Does it Mean for Development," pp. 117-33.

Rodrik, Has Globalization Gone too Far?.

EXAMINATION

Trade and Income Distribution

Cline, Trade and Income Distribution.

Rodrik, "Why is Trade Reform so Difficult in Africa," Jour. of Afr. Econ, 1998, pp.134-47.

The International Monetary System

Peter B. Kenen, Francesco Papadia, and Fabrizio Saccomanni, eds., "Introduction," in The International Monetary System (IMS) (Cambridge: Cambridge Univ. Press, 1994), 148-55.

Jacques Polak, "The International Monetary Issues of the Bretton Woods Era," IMS, 156-64.

Milton Friedman, "The Case for Flexible Exchange Rates," in AEA, Readings, pp. 165-77.

Kenen, "Floating Exchange Rates Reconsidered: New Ideas and Problems," IMS, 178-93.

Tamim Bayoumi and Barry Eichengreen, "Economic Performance under Alternative Exchange Rate Regimes: Some Historical Evidence," IMS, pp. 194-221.

The U.S. Balance of Payments Problem

U.S. President, Council of Economic Advisors, Economic Report of the President, 1998, pp. i, iii, 3-5, 11-17, 37-54, 155-80, 209-60, 280-84, 397-403, 406-408 (http://www.access.gpo.gov/eop/ or government publications office, Hale Library, 3rd floor.

EXAMINATION

The EU, NAFTA, and APEC: The Effect of Regional Trading Blocs

Jeffrey A. Frankel, Regional Trading Blocs in the World Economy.

C. Randall Henning, Cooperating with Europe's Monetary Union (Washington D.C.: Institute for International Economics, 1997).

Jacques J. Polack, "The Significance of the Euro for Developing Countries," in UNCTAD, International Monetary and Financial Issues for the 1990s, IX (Geneva, 1998), pp. 222-34.

Real Exchange Rates

Simon Wren-Lewis and Rebecca L. Driver, Real Exchange Rates for the Year 2000.

Agricultural Trade Policy - student presentation

Timothy Josling, Agricultural Trade Policy: Completing the Reform (Washington D.C.: Institute for International Economics, 1998).

U.S.-Japanese Economic Conflict - student presentation

Adam S. Posen, Restoring Japan's Economic Growth (Washington D.C.: Institute for International Economics, September 1998).

China's International Trade and Economic Reform (or alternative) - student presentation

Zhang Shuguang, Zhang Yansheng, and Wan Zhongxin, Measuring the Costs of Protection in China (Washington D.C.: Institute for International Economics, 1998).

EXAMINATION, Friday, December 18, 11:50 a.m.-1:40 p.m., in the classroom.

CLASS PRESENTATIONS

Each student will be expected to make a class presentation once during the semester on one of the following topics. You can determine the approximate timing of the presentation by seeing where that topic fits into the schedule of required reading assignments. Some possible presentations include:

1/ The new classical macroeconomics: its implications for international trade (Rudiger Dornbusch, Stabilization, Debt, and Reform (Englewood Cliffs, N.J.: Prentice Hall, 1993), pp. 61-62 and others.

2/ Credibility and stabilization (Dornbusch, Stabilization, pp. 68-79).

3/ Adjustment, stabilization, and reform in an economy in transition (a country in Eastern Europe or the former Soviet Union - Dornbusch chapter and other sources)

4/ Adjustment, stabilization, and reform in a developing country (a case study) (a Dornbusch chapter and other sources)

5/ Agriculture and international trade

6/ The international economics of the environment (including the international economics of global warming)

U.S. President, Council of Economic Advisors, Economic Report of the President, 1998, pp. 155-80 [optional: William R. Cline, The Economics of Global Warming (Washington D.C.: Institute for International Economics, 1992).]

7/ US-Japanese economic relationships

Adam S. Posen, Restoring Japan's Economic Growth (Washington D.C.: Institute for International Economics, September 1998).

8/ China's international trade and economic reform

Zhang Shuguang, Zhang Yansheng, and Wan Zhongxin, Measuring the Costs of Protection in China (Washington D.C.: Institute for International Economics, 1998).