Topics (this list may be changed slightly)
Topic 1 Introduction; national income accounting and balance of payments; exchange rates and the foreign exchange market.
KOM Chs. 1, 13, 14
SGU Ch. 1
Topic 2 An asset approach to exchange rates; interest rates and exchange rates in monetary equilibrium.
KOM: Chs. 14, 15
Topic 3 Law of one price and PPP; a long-run exchange rate model.
KOM: Ch. 16
Topic 4 The Mundell-Fleming model under flexible exchange rates (AA-DD model), sticky prices.
KOM: Ch. 17
Topic 5 Fixed exchange rates and foreign exchange intervention; balance of payment crisis.
KOM: Ch. 18
J.E. Gagnon. 2013. Currency Wars Peterson Institute for International Economics. http://www.iie.com/publications/papers/gagnon201301.pdf
Topic 6 International monetary systems: a historical overview.
KOM: Ch. 19
R.N. Cooper. 1982. The Gold Standard: Historical Facts and Future Prospects. Brookings Papers on Economic Activity, Vol. 1982, No. 1, pp. 1-56.
J. Frankel. 1999. No Single Currency Regime is Right for All Countries or At All Times. Essays In International Finance, 205, Princeton http://www.princeton.edu/~ies/IES_Essays/E215.pdf
Topic 7 Current account determination in an endowment and a production economy; fiscal deficits.
KOM Ch.17 p 488-489
SGU Chs. 2-3
Topic 8 External adjustment in small and large economies. Fiscal deficits and current accounts.
SGU Chs. 4-5
Topic 9 Optimum Currency Areas and European experience.
KOM: Ch. 20
O. Blanchard. 2007. Adjustment within the Euro. The Difficult Case of Portugal. Portuguese Economic Journal, Vol. 6, No. 1, pp. 1-21
J. Williamson. 2005. A Currency Basket for East Asia, Not Just China. Peterson Institute for International Economics, Policy Brief 05-1 http://www.iie.com/publications/pb/pb05-1.pdf
A. Ubide 2013. Reengineering EMU for an Uncertain World. Peterson Institute for International Economics, Policy Brief 13-4 http://www.iie.com/publications/pb/pb13-4.pdf
Topic 10 Global capital markets; global imbalances, financial crises and reforms.
KO: Ch 21, 22
SGU: Ch 7
Blanchard, O. and G.M. Milesi-Ferretti (2009). Global Imbalances: In Midstream? IMF Staff Position Paper SPN/09/29, December 22, Washington, D.C. http://www.imf.org/external/pubs/ft/spn /2009/spn0929.pdf
M. Obstfeld and K. Rogoff. 2009. Global Imbalance and the financial crisis: Products of common causes. http://www.econ.berkeley.edu/~obstfeld/santabarbara.pdf
D. Rodrik. 1998 Who Needs Capital Account Liberalization? in Peter B. Kennen (ed.), Should the IMF Pursue Capital Account Convertibility? : Princeton University Press (1998). http://ksghome.harvard.edu/~drodrik/essay.P DF
P. Krugman. 1998. An Open Letter To Prime Minister Mahathir and his Slate piece on Capital Control Freaks http://web.mit.edu/krugman/www/mahathir.ht ml
P.B. Henry. 2003. Capital-account liberalization, the cost of capital, and economic growth. American Economic Review. Nashville: May.Vol.93, No. 2, pp 91- 96 https://facultygsb. stanford.edu/henry/Homepage/PDF/Liber alization.pdf