Vassar College Department of Economics
Economics 248a, Fall 2001
International Trade and the World Financial System
David Kennett
BH 124, Ext 7394 e-mail KENNETT
http://faculty.vassar.edu/~kennett/248.htm
Office Hours in economics (BH 124) M-W 10-12
Office hours in International Studies (NE204) T, 9-11
Kreinin, Mordechai E., International Economics : A Policy Approach, Dryden Press, 8th Edition, Euro Update, 2000.
1. 1 Mid-term examination. (25%)Solutions to multiple choice section.
2. 1 Final examination. (50%)Solutions to multiple choice questions
3. Short problem sets and written assignments which are listed in the reading list. The answers to these questions (and the other Review Questions at the end of each Chapter) will be available from the web after the problem sets are due. (25%). The important thing about these assignments is to do them. You will find it very easy to borrow the answers from someone else, and this will get you a good grade on the assignments - but it will not help you in the exams. Grading on the sets is 3/5 for an honest attempt at completion, 4/5 for mostly right and 5/5 for close to perfection. Late assignments will be penalized, and may not be accepted if unjustifiably tardy. Class attendance is essential and contribution is desirable. Readings are to be done before the class for which they are required. You may be called upon to comment on or describe the readings during class.
This syllabus is active. Anything that is underlined is, in the electronic version of this page available through my website, an active link that will take you either to the reading itself (in HTML), or to a link which you can use to download the paper in .pdf format, or to the problem set solutions which will be posted after the problem set is due.
Syllabus
1. Introduction and Orientation (Tuesday, Sept 4)
Kreinin Chapters 1-2, including Appendix.
Kreinin, Chapter 3, including Appendix 3-1 only.
Assignment 1. Questions 4 & 7, p. 39, Q. 3. P. 74. Due Tuesday, Sept 18 Solutions for Chapters 2 and 3.
Kreinin, Chapter 4, including Appendices 4-1, 4-2, 4-3.
Kreinin, Chapter 5, including Appendix.
Krugman, Paul, "Is Free Trade Passe?"
Lindsey,Brink and Daniel T. Griswold, and Aaron Lukas, "The Steel 'Crisis' and the Costs of Protectionism", Center for Trade Policy Studies, Cato Institute, Briefing Paper 4, 1999.
Questions on Krugman.
Questions on Lindsey.
Assignment 2. Questions 3 & 8, p. 122, Q. 1 & 2, p 164.
Due Tuesday Sept 25.
Solutions for Chapters 4 and 5.
Kreinin, Chapter 6.
Hufbauer, Gary, "Sanctions Happy USA", Institute for International Economics, Policy Brief 98-4, 1998.
8. Common Markets, Regional Trade Organization and the WTO (Thursday, Sept 27)
Kreinin, Chapter 7.
"Playing Games with Prosperity" The Economist July 26th 2001
Assignment 3. Questions 1 & 4 , p. 204, Q. 2 & 3 p 220. Due Thursday Oct 4. Solutions for Chapters 6,7,8,9.
Kreinin, Chapter 8.
.
Kreinin, Chapter 9.
Borjas, George "The New Economics of Immigration." The Atlantic Monthly; November 199, Vol278, No. 5; 72-80.
French, Hilary, "Capital Flows and the Environment", Foreign Policy in Focus, Vol 3,# 22, August 1998.
Bhagwati, Jagdish "Why Free Capital Mobility May be Hazardous to Your Health," Comments to the NBER Symposium, 1998.
11. Review, Tuesday Oct 9
12. Midterm (Thursday, Oct 11)
13. Review of Mid-term (Tuesday, Oct 23)
14. Whom Does Trade Benefit? (ThursdayOct 25)
Winters, Alan, Trade and Poverty: Is There a Connection?, WTO Report
15. The Structure of the Balance of Payments and US Experience. (Tuesday Oct 30 )
Kreinin, Introduction to Part II and Chapter 10.
Assignment 4. The second and third problems on p. 245. Q 1 & 2, p. 264.
Due Tuesday Nov 3. Solutions for Part II and Chapter 10.
16. The Market Determination of Exchange Rates (Thursday Nov 1-Tuesday Nov 6)
Kreinin, Chapter 11, including Appendices.
Big MacCurrencies, The Economist
Kreinin, Chapter 12
Fischer, Stanley, First Deputy Managing Director, IMF, "Presentation to the International Financial Institution Advisory Commission"
Anderson, Sarah and John Cavanagh, Bearing the Burden The Impact of Global Financial Crisis on Workers and Alternative Agendas for the IMF and Other Institutions, IPS, April 2000.
Assignment 5. Q 1 & 2 on p. 290., Q 9 & 10, p. 319. Due Thursday Nov 15. Solutions for Chapters 11 and 12.
19. Balance of Payments Adjustment in an Open Economy (Thursday Nov 15)
Kreinin, Chapter 13, including Appendices.
20-21. Exchange Rate Adjustment & the Balance of Payments (Tuesday Nov 20, Tuesday November 27)
Kreinin, Chapter 14, Including Appendices.
Assignment 6. Q 1, 4, 7 on p. 352-353., Q 2 & 7, p. 401. Due Thursday Nov 29).
Solutions for Chapters 13 and 14 will be available after this date.
No Class Wednesday Nov 22
Kreinin, Chapter 16
Assignment 6. Q 1 & 2 p.426-427, Q 1 & 5, p. 452.. Due Monday Nov 29 Solutions for remaining chapters.
Kreinin, Chapter 17