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Syllabus
International Economics ECON 645 Professor: Bruce Elmslie Fall 2002 Office: 423 Office Hours: Tuesday and Thursday 3:30-4:30 From the beginnings of economic history, international trade has held a hint of mystery and romance within its study. From the charm of Venice to the reality of the development of capitalism out of the shackles of feudalism, international trade played out its hand. Since the sixteenth century, no individual has been immune from its impact on society. Today's economic reality is dependent on international economics more than ever before. Developments in transportation and communication services have left no sector of the economy unaffected.z This course is the first in a series of three courses that attempt to unlock the secrets of the causes and consequences of international exchange. Given the overwhelming and complex nature of such a task, simplified models designed to accentuate those areas of study deemed most essential are used. This is one of the purposes of economic theory. The study of international economics is somewhat artificially split into international trade and international money. International trade studies the movement of real goods and services while international money studies the monetary flows that may or may not accompany trade. We will try to use, but not abuse, this dichotomy by not forgetting the intimate link between these two areas of study. Text: P.R. Krugman and M. Obstfeld, International Economics: Theory and Policy, 6th edition, Addison-Wesley, 2002. General Plan of the Course
I. Introduction and early history Introduction in Krugman. II. International trade theory Part one in Krugman plus handouts. III. International trade policy Part two in Krugman plus handouts. IV. International monetary theory Part three in Krugman plus handouts. V. International macro monetary policy Part four in Krugman plus handouts. SPECIFIC PLAN
Sept 3 Ch. 1, Introduction Sept 5-10 Ch. 2, Labor Productivity and Comparative Advantage: The Ricardian Model Sept 12-17 Ch. 4, Resources and Trade: The Heckscher-Ohlin Model Sept 19-24 Ch. 5, The Standard Trade Model Sept 26-Oct 1 Ch. 6, Economies of Scale, Imperfect Competition, and International Trade Oct 3 Review – Catch-up Oct 8 EXAM Oct 10-15 Ch. 8, The Instruments of Trade Policy Oct 17-22 Ch. 9, The Political Economy of Trade Policy Oct 24 Ch. 11, Controversies in Trade Policy Oct 29 Review – Catch-up Oct 31 EXAM Nov 5-7 Ch. 12, National Income Accounting and the Balance of Payments Nov 14-19 Ch. 13, Exchange Rates and the Foreign-Exchange Market: An Asset Approach Nov 21-26 Ch. 18, The International Monetary System, 1870-1973 Dec 3-5 Ch. 19, Macroeconomic Policy and Coordination Under Floating Exchange Rates Dec 10 Ch. 21, The Global Capital Market Dec 12 Ch. 22, Developing Countries: Growth, Crisis, and Reform Dec 12 Review – Catch-up Dec 17 FINAL EXAM 3:30-5:30 Grading
1. We will have three exams each counting 25% of your grade. The first exam will cover part I of the text. The second exam will cover part II of the text. The third exam is the final, which covers the chapters covered in parts III and IV of the text. 2. The last 25% of your grade will come from quizzes, homework, your newspaper scrapbook and class participation. Two quizzes or homework assignments will be dropped. Quizzes will be given each Thursday, and no make ups will be given. 3. The first exam will be held on or about February 22, 2001 and the second exam on or about March 27, 2001. The final is scheduled for Friday, May 11, 2001 from 10:30-12:30. Cheating
If you cheat, do it well because the consequence of being caught is a failing grade for the course. |