Class test:

Your class test is 50 minutes plus 10 minutes reading time. It will be based primarily on questions along the lines of the numeric/short answer tutorial questions on lectures presented from weeks 1 to 5.

Review essay

Write an 1800 word summary and evaluation of any single one of the 4 instant classics on international monetary policy (listed below.) By “review essay” we mean a summary in your own words of the article you have chosen to review, together with an appraisal of it. Choose your own preferred proportions of summary and appraisal. You will receive a slightly higher mark if, other things equal, the article you choose to review is comparatively difficult. Your bibliography need not be extensive. Keep a copy of your essay.

Choose ONE of the following articles as your review essay topic:

1. Harris Dellas and George S. Tavlas, The Gold Standard, the Euro, and the Origins of the Greek Sovereign Debt Crisis, Cato Journal, Vol. 33, No. 3, Fall 2013. 

Argues that joining the Euro brought short-term gains to Greece but shut off necessary adjustment mechanisms that used to impose necessary disciplines under, for example, the international gold standard (which collapsed during the 1930s). Level of difficulty: moderate--no econometrics.

2. Oscar Jorda, Moritz Schularick and Alan Taylor, Financial Crises, Credit Booms, & External Imbalances: 140 Years of of Lessons, IMF Economic Review, Vol.59, No. 2.

Checks out causes & consequences of financial crises, with external balances being one possible cause. Level of difficulty: medium—some econometrics.

3. Maurice Obsfeld, Financial Flows, Financial Crises. & Global Imbalances, Journal of International Money & Finance, Vol. 31, 2012, 469-480. 

Argues that current account imbalances “remain an essential target for policy scrutiny”. Level of difficulty: moderate. Some knowledge of balance-of-payments terminology is required, but there’s no econometrics, & the article is short

4. John B Taylor, International Policy Coordination: Past, Present & Future, Bank fo International Settlements, Working Paper 437, 2013.

Investigates notions such as the idea that recent departures by the US from its normal policy responses have pushed other countries off course as well. Level of difficulty: moderate to medium. Some conceptual sophistication is assumed, but there’s no econometrics. 

The review essay is due on the Monday, 5th of May by 4pm.

YOU NEED TO SUBMIT YOUR ASSIGNMENT TO THE POSTGRADUATE CENTER LOCATED ON LEVEL 2, E4A. FAIL TO SUBMIT ON TIME WILL RECIEVE A 20% REDUCTION ON THEIR MARK PER DAY.

THERE WILL BE FOUR BOXES FOR YOU TO SUBMIT YOUR ASSIGNMENT, EACH FOR A PARTICULAR ARTICLE. PUT YOUR ESSAY INTO THE BOX LABELLED WITH YOUR ARTICLE OF CHOICE. FAIL TO DO SO MAY RESULT IN A DELAY, OR POSSIBLE LOSS OF YOUR ASSIGNMENT.

You will be allocated to a group in week 4. You need to choose a topic that interests you in either international economics or monetary policy, and consult with your unit convenor about your choice by week 6 (2nd April). If you fail to do so you will lose all the marks for this assessment. If there is more than one group that wants to present on the same topic, then the topic will be allocated to the group that first emailed their choice to the unit convenor. 

Each group will have 20 minutes to present, followed by 5-10 minutes discussion with your fellow students and the lecturer. If you choose a topic that relates to an event, please discuss the background, how the event evolved over time and what were the policies implemented. If you choose a topic that relates to an issue, please introduce the background of the issue. Regardless of your topic, you should discuss potential policy implications and your understanding of the topic. All members of the group are expected to conduct part of the presentation and participate in the discussion.

This assessment accounts for 15% of the total mark. Out of this 15%, 10% will be allocated to the presentation and 5% will be allocated to the class participation, eg: discussions on others' presentations. To secure this 5%, those who participated in the discussion of others' presentations need to record their name and ID with the lecturer at the end of lecture in both weeks 12 and 13 (2.5% each).  

The actual presentation will take place in weeks 12 and 13 in the lecture. However, all groups need to email their presentation slides to the unit convenor by 5pm on Friday in week 11 (22nd of May). Groups that fail to do so will lose 5% (out of 15%) of their mark. The following list contains a sample of topics that may interest you:

• Asian financial crisis
• International monetary policy coordination
• Internationalization of Renminbi
• Monetary policy under crisis
• Carry trade

Final examination

The final examination will be held during the official examination period from 11 June to 28 June. The examination will be based on lectures and tutorials from weeks 1 to 13, with an emphasis on material presented after the mid-session class test.