Kansas State University
Department of Economics
Advanced International
Economics
(International Economic
Policy) (Economics 823)
Spring 2000
E. W. Nafziger
(nafwayne@ksu.edu)
8:30‑9:20 MWF,Waters 329
Office hours: 8-8:25, 9:30-10:20 MWF, or appointment--
Waters 312.
I will calculate your semester grade by weighing the
mid-term examination one unit, your class presentation (see last section) one
and one-half units, and your final examination two units. Additionally, I will
raise your semester numerical score if you make an excellent contribution to
class.
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 (and Russian) financial
crisis, international adjustment and reform in developing and transitional
economies, U.S.-Japanese
bilateral economic relationships, trade and income distribution, regional
economic integration, the international monetary system, the U.S. balance of
payments problem, and globalization.
The goal is to provide students with the background, experience, and tools for
future analysis of international economic problems and policies.
REQUIRED
MONOGRAPHS
Manuel F. Montes and Vladimir V. Popov, Asian Crisis Turns Global (Singapore: Institute of Southeast Asian
Studies, 1999). ISBN 981-230-050-3. Order from East-West Center, 1601 East-West
Road, Honolulu, Hawaii 96848-1601; phone 808-944-7145.
Journal of
Economic Perspectives
13(4) (Fall 1999): 3-124. From American Economic Association, JEP, 2014
Broadway, Suite 305, Nashville, TN 37203.
For orders for the following, see http://www.iie.com/
Barry Eichengreen, Toward
a New International Financial Architecture: A Practical Post-Asia Agenda
(Washington, D.C.: Institute for International Economics, 1999). ISBN
0-88132-270-9
Dani Rodrik, Has
Globalization Gone too Far? (Washington D.C.: Institute for International
Economics, 1998). ISBN 0-88132-241-5
Catherine L. Mann, Is
the U.S. Trade Deficit Sustainable? (Washington D.C.: Institute for
International Economics, 1999). ISBN 0-88132-265-2
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
Adam S. Posen, Restoring
Japan¡¯s Economic Growth (Washington D.C.: Institute for International
Economics, 1998). ISBN 0-88132-262-8
Claflin Books and Copies (CBC), Advanced International
Economics, Spring 2000.
PLAGIARISM
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,¡±
http://www.ksu.edu/uauc/fhbook/fhxf.html.
REQUIRED READING
ASSIGNMENTS
The Asian
(and Russian) Financial Crisis
Frederic S. Mishkin, ¡°Global Financial
Instability: Framework, Events, Issues,¡± Journal
of Economic Perspectives 13(4) (Fall 1999): 3-20 (Read for Wed., Jan. 19)
Manuel F. Montes and Vladimir V. Popov, Asian Crisis Turns Global (Singapore: Institute of Southeast Asian
Studies, 1999).
Percy S. Mistry, ¡°Coping with Financial Crises: Are Regional
Arrangements the Missing Link?¡± in United Nations Conference on Trade and
Development, International Monetary and
Financial Issues for the 1990s, X (Geneva, 1999), pp. 93-116.
Stanley Fischer, ¡°The Asian Crisis: the Return of Growth,¡±
International Monetary Fund, Washington, D.C., paper presented to the Asia
Society, Hong Kong, June 17, 1999,. http://www.imf.org/external/np/speeches/1999/061799.HTM
(other papers on the Asian crisis by IMF staff are available at the same URL).
The
International Monetary System and its Reform
Kenneth Rogoff, ¡°International Institutions for Reducing
Global Financial Instability,¡± Journal of
Economic Perspectives 13(4) (Fall 1999): 21-42.
Milton Friedman, "The Case for Flexible Exchange
Rates," in AEA, Readings in International Economics (Homewood,
Ill.: Irwin, 1968), pp. 165-77.
Barry Eichengreen, Toward
a New International Financial Architecture: A Practical Post-Asia Agenda
(Washington, D.C.: Institute for International Economics, 1999).
Gerard Caprio and Patrick Honohan,
¡°Restoring Banking Stability: Beyond Supervised Capital Requirements,¡± Journal of Economic Perspectives 13(4)
(Fall 1999): 43-64.
Sebastian Edwards, ¡°How Effective are
Capital Controls?¡± Journal of Economic
Perspectives 13(4) (Fall 1999): 65-84.
Stanley Fischer, ¡°On the Need for an International Lender of
Last Resort,¡± Journal of Economic
Perspectives 13(4) (Fall 1999): 85-104.
Stabilization,
Debt, and Reform
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,¡± Rajiv Gandhi Institute for Contemporary Studies Paper No. 42,
1997, pp. 117-133.
Dani Rodrik, Has
Globalization Gone too Far? (Washington D.C.: Institute for International
Economics, 1998).
EXAMINATION
Trade and
Income Distribution
William R. Cline, Trade
and Income Distribution (Washington D.C.: Institute for International
Economics, 1998).
Dani Rodrik, ¡°Why is Trade Reform so Difficult in Africa,¡± Journal of African Economies 7, Supp. 1
(May 1998), pp. 134-147.
The EU,
NAFTA, and APEC: The Effect of Regional Trading Blocs
Jeffrey A. Frankel, Regional
Trading Blocs in the World Economy (Washington D.C.: Institute for
International Economics, 1997).
C. Randall Henning, Cooperating
with Europe¡¯s Monetary Union (Washington D.C.: Institute for International
Economics, 1997).
Anne O. Krueger, ¡°Are Preferential Trading Arrangements
Trade-Liberalizing or Protectionist?¡± Journal
of Economic Perspectives 13(4) (Fall 1999): 105-124.
Jacques J. Polack, ¡°The Significance of the Euro for
Developing Countries,¡± in United Nations Conference on Trade and Development, International Monetary and Financial Issues
for the 1990s, IX (Geneva, 1998), pp. 222-34.
Is the U.S.
Trade Deficit Sustainable?
Catherine L. Mann, Is
the U.S. Trade Deficit Sustainable? (Washington D.C.: Institute for
International Economics, 1999).
U.S. President, Council of Economic Advisors, Economic
Report of the President, 2000, pages to be specified, http://www.access.gpo.gov/eop/
or government publications office, Hale Library, 3rd floor.
Financial Market Center, ¡°Assessing the U.S. Capital
Account: New Commentary on U.S. Financial Statistics,¡±
http://www.fmcenter.org/pdf/capitalflow.pdf
EXAMINATION
U.S.-Japanese
Economic Conflict
Adam S. Posen, Restoring
Japan¡¯s Economic Growth (Washington D.C.: Institute for International
Economics, 1998).
FINAL
EXAMINATION,
Tuesday, May 9, 11:50-1:40, in Waters 329
CLASS PRESENTATIONS
You will be expected to make a class presentation on a topic
related to international economics once during the semester. You have several
alternatives: (1) empirical, conceptual, or analytical work on a topic; (2)
presentation and analysis of a component or an item related to the syllabus above;
or (3) report on and analysis of a topic in international economics not listed
in the syllabus. Indicate your tentative topic by Friday, January 21, and hand
in an outline one week before your oral presentation.
(1) Preferably you will present empirical, conceptual, or
analytical work on a topic close to the time related topics are discussed in
class; as an alternative, you can present your topic during a class period the
last 2-3 weeks of class. You are required to present both a written and oral version
of your work, but the written version can be revised to be handed in to me on
Friday, May 5.
When you write a paper, you
are expected to use standard bibliographical and citation procedures (if in
doubt, use the procedures of a recent American
Economic Review. For material on the web, the bibliographical
citation must be complete, for example, Stanley Fischer, ¡°The Asian Crisis: the
Return of Growth,¡± International Monetary Fund, Washington, D.C., paper
presented to the Asia Society, Hong Kong, June 17, 1999,. http://www.imf.org/external/np/speeches/1999/061799.HTM). Feel free to hand in an earlier draft so that I
can give you comments that will allow you to improve your paper (but give me a
few days to respond), or ask questions about your progress at earlier stages of
work on your paper.
(2) Presentation related to the syllabus can be a chapter or
two from the assigned material, or complementary material, such as a review of some
papers at http://www.imf.org/external/np/speeches/1999/061799.HTM
related to the IMF¡¯s view of the Asian crisis, or material on international
economics in the Economic Report of the President, 2000, probably
available by late February at http://www.access.gpo.gov/eop/. You are required
to make this presentation during the time we are discussing the unit in class.
(3) A topic in international economics not listed in the
syllabus can be presented close to the time related topics are discussed in
class; as an alternative, you can present your topic during a class period the
last 2-3 weeks of class. (http://www.iie.com/CATALOG/toc.htm
indicates sources for other possible topics; http://altaplana.com/Gate.international.html
indicates international agencies, which might suggest possible topics; http://www.ksu.edu/economics/nafwayne/
organizes some sources to aid you in finding topics). For example, http://www.iie.com/CATALOG/TRADELIB/catralib.htm
indicates a source on the cost of protection in China; http://www.iie.com/CATALOG/USTRADE/joslngpa.htm
indicates a source that discusses agricultural trade policy for the WTO. Other
topics might include the new classical macroeconomics: its implications for
international trade; credibility and stabilization; the international economics
of the environment (including the international economics of global warming) http://www.iie.com/CATALOG/ENVIRONM/catenvir.htm.