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READINGS

There is a required textbook and some additional articles.  You are also required to be informed of the current events in the international financial markets.  This can be achieved by reading Financial Times, Wall Street Journal, International Herald Tribune or New York Times on daily basis and The Economics on a weekly basis.  All these should be available in the library.  Most important news will be posted on the Main page.

Required text: Paul R. Krugman and Maurice Obstfeld "International Economics: Theory and Policy", 6th edition. (KO) Chapters 1, 12-22 (Including Appendixes). It is available for purchase at Yale bookstore or at Amazon (best price at amazon.co.uk).  Please do not use earlier editions as much has changed in the last edition.  You can buy a used book, however, the publisher has issued a (small) update for this year, which comes along with a new book.  If you buy a used book, please check with me regarding the material you will have to read from the update, available at the library.
The book comes with the password to the web site where additional materials can be found.  These are not required, but can prove useful - you can practice on quiz questions, for example.

Additional readings (those are useful for the class and some are required - see lecture plan):

  1. Alesina, A. and A. Wagner (2003), "Choosing (and Reneging on) Exchange Rate Regimes", NBER WP 9809.
  2. Calvo, G. and C. Reinhart "Fear of Floating", NBER WP 7993.
  3. Cespedes, L.F., R.Chang and A. Velasco (2002) "IS-LM-BP in the Pampas", NBER WP 9337.
  4. Dornbusch (1976) "Expectations and Exchange Rate Dynamics", Journal of Political Economy 84(6), pp.1161-1176.  (Available through JStor - Yale IP required).
  5. Dornbusch, Rudiger (2001) "A Primer on Emerging Market Crises," NBER Working Paper 8326
  6. Edwards, Sebastian (1990) "How Effective Are Capital Controls?" NBER Working Paper 7413
  7. Edwards, Sebastian and Igal Magendzo (2003) "A currency of one's own? An empirical investigation on dollarization and independent currency unions", NBER WP 9514.
  8. Eichengeen, B. and R. Haussman (1999) "Exchange Rates and Financial Fragility" NBER WP 7418.
  9. Fischer, Stanley (2001) "Exchange Rate Regimes: Is the Bipolar View Correct?" JEP Spring 2001 
  10. Frankel, J. (1992) "Measuring International Capital Mobility: A Review", The American Economic Review, 82(2), pp.197-202. (Available through JStor - Yale IP required).
  11. Frankel, J. (2003) "Experience of and Lessons from Exchange Rate Regime in Emerging Economies" NBER WP 10032
  12. Frankel, Jeffrey. (2003) "A Proposed Monetary Regime for Small Commodity-Exporters: Peg the Export Price," Forthcoming in International Finance.  
  13. Krueger, Anne (2002) "Preventing and Resolving Financial Crises: The Role of Sovereign Debt Restructuring"
  14. Krugman, P. (1999), "Analytical Afterthoughts on the Asian Crisis," mimeo.

  15. Krugman, P.(1998?), "Currency Crises", mimeo

  16. Krugman, P. (1998), "What Happened to Asia?" mimeo, January 1998.

  17. Obstfeld, M (2000) "International Macroeconomics: Beyond the Mundell-Fleming Model"  IMF Staff Papers 47

  18. Obstfeld, M. (2002) "Exchange Rates and Adjustment: Perspectives from the Open Economy Macroeconomics", NBER WP 9118.
  19. Obstfeld, Maurice and Rogoff, Kenneth. (1995) "The Mirage of Fixed Exchange Rates," NBER Working Paper 5191
  20. Obstfeld, Maurice, Jay C. Shambaugh and Alan M. Taylor (2003) "The Trilemma in History: Tradeoffs among Exchange Rates, Monetary Policies, and Capital Mobility" NBER Working Paper 10396

Further readings (if you want to learn more - check in here frequently for new additions):

  1. Alesina, Alberto and Alexander Wagner, "Choosing (and reneging on) Exchange Rate Regimes" NBER WP 9809, June 2003. This  paper that analyses whether countries follow exchange rate regimes they announce.
  2. Annals of the American Academy of Political and Social Science, volume 579, January 2002.  "Exchange rate regimes and Capital Flows".  A collection of articles by economists and political scientists on international financial architecture.
  3. Berglof, Erik and Patrick Bolton, "The Great Divide and Beyond: Financial Architecture in Transition", Journal of Economic Perspectives, 16(1), Winter 2002.  A non-technical article on the financial development of transition economies and its relation to economic growth.
  4. Eichengreen, Barry "Globalizing Capital", Princeton University Press 1996. A great (and short) book presenting a history of the international monetary system.
  5. Eichengreen, Barry "Golden Fetters" Oxford University Press 1995.  A great book that discusses inter-war gold standard and its effect on Great Depression.
  6. Eichengreen, Barry and Ricardo Haussman, "Exchange Rate Regimes and Financial Fragility", NBER WP 7418, November 1999. This paper analyses how moral hazard, "original sin" and commitment problems make a link between exchange rates and financial fragility.
  7. Mishkin, Frederic, "Lessons from the Asian Crisis", Journal of International Money and Finance, 18, 1999, pp.709-723. Based on the analysis of the reasons that lead to the Asian crisis, author suggests changes in international financial institutions, capital controls and exchange rate regimes.

  8. Mishkin F., (1999), "Global Financial Instability: Framework, Events, Issues", Journal of Economic Perspectives, 13(4), pp. 3-20. Discussion of the importance of the financial system and the moral hazard that financial systems are facing.

  9. Montiel, Peter and Carmen Reinhart, "Do capital controls and macroeconomic policies influence the volume and composition of capital flows? Evidence from the 1990s", Journal of International Money and Finance, 18, 1999, pp.619-135. This paper shows that capital controls affect composition, and not the volume of international capital flows.
  10. Reinhart, Carmen and Kenneth Rogoff, "The Modern History of Exchange Rate Arrangements: A Reinterpretation", NBER WP 8963. The authors provide new classification of exchange rate regimes based on the market de-facto exchange rate fluctuations.  A large data appendix provides post-war history of exchange rate regimes for a lot of countries.

Links to more readings (if you did not have enough yet)

Brian Doyle's page on New Open Economy Macro
Giancarlo Corsetti's page on Euro
Nouriel Roubini's page on Global Macroeconomic and Financial Policy
World Bank page on Contagion