Chonira Aturupane Autumn Quarter 2016/2017Ford Dorsey International Policy Studies Program Office Room: Encina West 209Stanford University Office Hours: T, Th: 2:00-3:00pm & by appt.Lectures: Encina Hall C464 Email: chonira@stanford.eduTTH: 11:30am - 1:20pm

IPS 202: Topics in International Macroeconomics

This course focuses on salient topics in international or open-economy macroeconomics. The goal of the course is to equip students with the tools to analyze international macroeconomic and financial issues, policies and events. The key topics studied in this course are the causes and consequences of external imbalances, exchange rate regimes, currency and financial crises, the economics of monetary unification, and the reform of the international financial architecture.

The course has limited enrollment with priority given to IPS students. Non-IPS students need the permission of the instructor to enroll in the course.

Prerequisite s : The prerequisites for the course are Economic Analysis III (Econ 52) and International Finance (Econ 165) or equivalent courses.

Students who wish to review the relevant background material covered in Econ 165 should read chapters 13-22 of Krugman, Obtsfeld and Melitz, International Economics: Theory and Policy, 9th edition (2012), Addison Wesley.

Textbook s : Required Textbook:De Grauwe, Paul, (2016) Economics of Monetary Union, 11th edition, Oxford University Press.

Recommended Textbook: Levich, Richard, (2001) International Financial Markets: Prices and Policies, 2nd Edition, McGraw-Hill Irwin.

Course Requirements:The course grade will be composed of the weighted average of three grades as follows:

Assignments (3) : 40%Assignment 4 : 15%Research Paper : 45%

AssignmentsThere will be 3 assignments on key topics discussed in class. The assignments will be due in class. Please note that no late assignments will be accepted.Students are encouraged to work in groups on the assignments, but each student is required to write and submit his/her own assignment.

Assignment 4 will be conducted under exam conditions. This includes that you cannot discuss or share the assignment and answers with anyone but the instructor, and all work on Assignment 4 should be sorely your own work.

Please familiarize yourself with Stanford’s Honor Code as all class assignments are conducted under the Honor Code.

Research PaperStudents will be responsible for a paper on a topic in international macroeconomics. The paper should be an application of the tools that you learn in class. You may include both theoretical and empirical elements. In fact, an empirical analysis is encouraged. Moreover, you need to ensure that your paper contains an original contribution and is not merely a synthesis of research on the chosen topic. The policy

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implications/recommendations of your analysis should be fleshed out as well .

The papers discussed in class are good examples of the type of paper you should write.

The paper should be 18-20 pages (text-only1) in length (typewritten, one-inch margins, 12 point Times New Roman font size and double-spaced) and is due on Monday, December 12, by noon.

You need to have the topic approved early in the quarter. A one-page proposal briefly discussing your planned topic with an attached bibliography is due on Thursday, October 6, in class.

The one-page proposal should include (i) a brief description of the topic and research methodology and (ii) an outline of the paper. In addition, please attach a bibliography to your proposal (papers/articles that you read in order to decide on your topic).

Note that the paper has to be an original piece of work solely researched for this specific course. You cannot submit work that replicates previous papers you have submitted in other courses or any other work you have previously done or are doing for concurrent courses (see the Honor Code).

Some suggested topics in international macroeconomics are as follows:

1. Global implications of the US financial crisis – you can choose a country and analyze the channels through which the US financial crisis impacted the country’s economy.

2. Is East Asia an Optimum Currency Area? An analysis of the feasibility of a monetary union for East Asia (or the Gulf Monetary Union or the West African Monetary Union).

3. Brexit – the macroeconomic implications of Brexit for Great Britain.4. An assessment of external vulnerability for a country of your choice.5. Early Warning Systems and Crisis Indicators.6. Original Sin and the end of Original Sin? (now that I have hopefully piqued your interest, feel free to

research this topic as a potential subject for your paper).7. An assessment of the exchange rate regime of a country of your choice.8. Sovereign Wealth Funds.9. Reform of the International Financial Architecture – choose a crisis prevention or crisis resolution

policy and provide an analysis of its efficacy.

Some previous student topics are as follows:

1. Assessing the Impact of Political Risk on European Sovereign Bonds (available on the course website).2. Sustainability of New Zealand’s Current Account Deficit: Assessing the Likelihood of a Sudden

Reversal (available on the course website).3. Egypt’s Economy after the Revolution: What U.S. Policy Responses are Appropriate? (Available on

the course website). 4. Internationalization of the Renminbi: Why, How and So What? (Available on the course website).5. The Euro’s Rise as an International Reserve Currency: Quantifying the Economic Costs for the United

States.6. Should the Czech Republic join the EMU in 2010 as Planned or Postpone?7. A Fear of Floating or a Fixation with Inflation? Assessing Canada’s Exchange Rate Regime.8. The Roadmap for China’s Exchange Rate Regime.9. Remittances to the Philippines: Help or Hindrance? A Vector AutoRegression Analysis.10. India’s Capital Account Liberalization.11. The Downsides of Debt Relief.12. Debt Forgiveness: Why and How and is it a Good Idea?13. Can East Asia be Redeemed from Original Sin?14. The Swedish Financial Crisis: Lessons for the U.S.15. Escape from the Past? Sustainability of the Argentine Recovery

1 Charts, Tables, Appendices and the Bibliography are not included in the 18-20 page count.2

The following resources may aid you in your search for a topic and your research .

1. The Economist magazine/website.2. Financial Times newspaper/website.3. Country reports by the IMF (available on www.imf.org).4. You could also browse economics academic journals by subject via Stanford Libraries subscriptions.5. Search Google Scholar for articles on a topic of interest.

Writing GuidesThe following are resource guides for writing clearly and succinctly.

Strunk, W. and E.B. White, (1979) The Elements of Style, 3rd ed. New York: Macmillan.

McCloskey, D., (1985) “Economical Writing,” Economic Inquiry, Vol.23, No.2, April, pages 187-222. (Available on the course website).

Hamilton, Lee, (1992) “Economists as Public Policy Advisors,” Journal of Economic Perspectives, Vol.6, No.3, Summer, pages 61-64. (Available on the course website).

Economic DataThe course website has a guide on economics databases (See Attachment II).

Class ParticipationYou are expected to read the required readings prior to class and to be ready to actively participate in class discussion. You should approach the readings from a critical perspective. The points you bring up during class discussion should be well thought out and organized, not merely a repetition of the reading material. You are encouraged to submit current articles on course topics to the instructor for use in class discussion (at least 24 hours prior to class).

Research Paper PresentationsStudents are expected to present and discuss their research papers on Tuesday November 29, Thursday, December 1, and Tuesday December 6. These presentations will serve as a building block and a commitment device towards successful completion of your research paper. We will discuss the presentation logistics closer to the date.

Class Deadlines (subject to change):Assignment Due Date Research Paper Proposal Thursday, October 6, in classAssignment 1 Thursday, October 13, in classAssignment 2 Tuesday, October 25, in classAssignment 3 Tuesday, November 8, in classAssignment 4 Thursday, November 17, in classResearch Paper Presentations Tuesday November 29, Thursday

December 1, and Tuesday December 6.

Research Paper Monday, December 12, by noon

Class WebsiteCourse material will be available on the class website on http s :// canvas .stanford.edu/

Teaching AssistantThe teaching assistant for the course is Bidisha Das.Office Room: TBD.Office Hours: TBD.Email: bidisha@stanford.edu

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Course Outline

All course readings are either publicly available on the internet or can be accessed via Stanford Libraries electronic resources (ejournals). Additional readings/handouts will be distributed in class as appropriate. Readings marked with an asterisk are recommended background/supplementary readings for each section.

1. Introduction

2. Global External Imbalances: The U.S. Current Account Deficit

Handout: U.S. Balance of Payments and Net International Investment Position (NIIP)

Mann, Catherine L., (2002) “Perspectives on the U.S. Current Account Deficit and Sustainability,” Journal of Economic Perspectives, Vol.16, No. 3, Summer, pages 131-152.

Bernanke, Ben, (2005) “The Global Savings Glut and the U.S. Current Account Deficit,” Homer Jones Lecture, St. Louis, Missouri, April.

Bernanke, Ben, (2015), “Why are Interest Rates so Low?: Part 3: The Global Savings Glut,” Brookings Institution.

Blanchard, Olivier and Gian Maria Milesi-Ferretti, (2010), “Global Imbalances: In Midstream?” in Reconstructing the World Economy, Chapter 8, edited by Olivier Blanchard and Il SaKong, Washington: International Monetary Fund.

Chinn, Menzie D., Barry Eichengreen, and Hiro Ito (2012), “Global Imbalances: Are They Back, Should We Worry, and What Should We Do About Them?” http://www.web.pdx.edu/~ito/Global%20Imbalances%20Chinn-Eichengreen-Ito.pdf

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*Adalet, Muge and Barry Eichengreen, (2005) “Current Account Reversals: Always a Problem?” National Bu-reau of Economic Research Working Paper No.11634, Cambridge: Massachusetts, September, pages 1-56.

*Caballero, Ricardo, Emmanuel Farhi and Pierre-Olivier Gourinchas, (2008) “An Equilibrium Model of Global Imbalances and Low Interest Rates,” American Economic Review, Vol.98, No.1, pages 358-393.

*Bernanke, Ben, (2007) “Global Imbalances: Recent Developments and Prospects,” Bundesbank Lecture, Berlin, Germany, September.

*Eichengreen, Barry and Yung Chul Park, (2006) "Global Imbalances and Emerging Markets,” in Global Imbalances and the US Debt Problem - Should Developing Countries Support the US Dollar? The Hague: Fondad, November, Chapter 2, pages 14-44.

*Feldstein, Martin S., (2008) “Resolving the Global Imbalance: The Dollar and the U.S. Saving Rate,” Journal of Economic Perspectives, Vol.22, No. 3, Summer, pages 113-125.

*Berkmen, S. Pelin, Gaston Gelos, Robert Rennhack, and James P. Walsh (2012), “The Global Financial Crisis: Explaining Cross-Country Differences in the Output Impact,” Journal of International Money and Finance,Vol. 31, pages 42–59.

*Lane, Philip R. and Gian Maria Milesi-Ferretti, (2010), “The Cross-Country Incidence of the Global Crisis,” IMF Economic Review, International Monetary Fund.

*Ghosh, Atish and Uma Ramakrishnan, (2012), “Current Account Deficits: Is There a Problem?” Finance & Development, International Monetary Fund.

**Review: Chapter 1 3 : National Income Accounting and the Balance of Payments , Krugman, Obtsfeld and

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Melitz (2012).

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3. The International Financial Architecture: The International Monetary System

Levich, Richard, (2001) “An Overview of International Monetary Systems and Recent Developments in International Financial Markets,” International Financial Markets: Prices and Policies, 2nd Edition, McGraw-Hill Irwin, Chapter 2, pages 23-45.

The Fragility of Incomplete Monetary Unions, De Grauwe, chapter 5, Read pages 101-109.

Handout: Classification of Exchange Rate Regimes

Dooley, Michael, David Folkerts-Landau and Peter Garber (2004) “The Revived Bretton Woods System,” International Journal of Finance and Economics, Vol. 9, Issue 4, November, pages 307–313.

Dooley, Michael, David Folkerts-Landau and Peter Garber (2014) “The Revived Bretton Woods System’s First Decade,” National Bureau of Economic Analysis Working Paper No. 20454, September, pages 1- 40.

Reinhart, Carmen M., (2000) “The Mirage of Floating Exchange Rates,” American Economic Review, Vol.90, No.2, May, pages 65-70.

Handout: “Currency Wars”

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*McKinnon, Ronald I., (1993) “The Rules of the Game: International Money in Historical Perspective,” Journal of Economic Literature, Vol.31, No. 1, March, pages 1-44.

*Calvo Guillermo and Carmen Reinhart, (2002) “Fear of Floating,” Quarterly Journal of Economics Vol. 117, No.2, May, pages 379-408.

*McKinnon, Ronald I. And Gunther Schnable, (2004) “The East Asian Dollar Standard, Fear of Floating and Original Sin,” Review of Development Economics, Vol.8, pages 331-360.

*McKinnon, Ronald I. And Gunther Schnable, (2004) “The Return to Soft Dollar Pegging in East Asia: Mitigating Conflicted Virtue,” International Finance, Vol.7, pages 169-201.

*Roubini, Nouriel, (2006) “The BW 2 Regime: An Unstable Disequilibrium Bound to Unravel,” International Economics and Economic Policy, Vol. 3, Nos.3-4, December, pages 303-332.

*Roubini, Nouriel, (2008), “Will the Bretton Woods 2 (BW2) Regime Collapse Like the Original Bretton Woods Regime Did? The Coming End Game of BW2,” available at rgemonitor.com.

* Duttagupta, Rupa, Rishi Goyal and Isabelle Mateos y Lago, (2009), “The Debate on the International Monetary System,” IMF Staff Position Note, SPN/09/26, International Monetary Fund, pages 1-25.

*Rockoff, Hugh, (1990) “The "Wizard of Oz" as a Monetary Allegory,” Journal of Political Economy, vol. 98, no. 4 August, pages 739-760.

**Review: Chapter s 1 4-18 : Krugman, Obtsfeld and Melitz (2012).

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4. European Monetary Union (EMU)

Transition to a Monetary Union and the Theory of Optimum Currency Areas: CostsThe Transition to a Monetary Union, De Grauwe, chapter 7.Fiscal Policies in Monetary Unions, De Grauwe, chapter10.The Costs of a Common Currency, De Grauwe, chapter 1.The European Central Bank, De Grauwe, chapter 8.

The Theory of Optimum Currency Areas : A Critique The Theory of Optimum Currency Areas: A Critique, De Grauwe, chapter 2, Read pages 23-39 and pages 47-52.Monetary Policy in the Eurozone, De Grauwe, chapter 9.

Eichengreen, Barry (2014) “The Eurozone Crisis: The Theory of Optimum Currency Areas Bites Back,” Notenstein Academy White Paper Series, pages 1-18.

The Theory of Optimum Currency Areas: Benefits, and Costs and Benefits ComparedThe Benefits of a Common Currency, De Grauwe, chapter 3.Costs and Benefits Compared, De Grauwe, chapter 4, Read pages 70-86.

Frankel, Jeffrey and Andrew Rose, (2002) “An Estimate of the Effect of Common Currencies on Trade and Income,” Quarterly Journal of Economics, Vol. 117, No.2, May, pages 437-466.

Lane, Philip R., (2006), “The Real Effects of European Monetary Union,” Journal of Economic Perspectives, Vol. 20, No.4, Fall, pages 47-66.

European Monetary Union: Recent DevelopmentsThe Euro and Financial Markets, De Grauwe, chapter 11, Read pages 238-245.Lane, Philip R., (2012), “The European Sovereign Debt Crisis,” Journal of Economic Perspectives,

Vol. 26, No.3, Summer, pages 49-68.How to Complete a Monetary Union? De Grauwe, chapter 6.Nelson, Rebecca, Paul Belkin and Derek E. Mix, (2015) Greece’s Debt Crisis: Overview, Policy

Responses, and Implications, Congressional Research Service Report for Congress.

Handout: Greek Debt Crisis: Recent Developments

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*Eichengreen, Barry, Naeun Jung, Stephen Moch and Ashoka Mody (2013), “The Eurozone Crisis: Phoenix Miracle or Lost Decade?” Journal of Macroeconomics.

* European Central Bank, (2008) The Euro at Ten – Lessons and Challenges, Fifth ECB Central Banking Conference, November.

*Wyplosz, Charles, (2006) “European Monetary Union: The Dark Sides of a Major Success,” Economic Policy, Vol.21, No.46, April, pages 208-261.

*Blanchard, Olivier, (2004) “The Economic Future of Europe,” Journal of Economic Perspectives, Vol. 16, No.4, Fall, pages 3-26.

*Eichengreen, Barry and Tamim Bayoumi, (1997) “Ever-Closer to Heaven? An Optimum-Currency-Area Index for European Countries,” European Economic Review, Vol. 41, No.3, April, pages 761-770.

* Reinhart, Carmen M. and Kenneth S. Rogoff (2011) “From Financial Crash to Debt Crisis,”American Economic Review, Vol. 101, No.5, pages 1676-1706.

*Nelson, Rebecca, Paul Belkin, Derek E. Mix and Martin Weiss, (2012), The Eurozone Crisis: Overview and Issues for Congress, Congressional Research Service Report for Congress.

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5. Global Financial Instability: Currency and Financial Crises

Mexico:Edwards, Sebastian, (1998) “The Mexican Peso Crisis: How Much Did We Know? When Did We

Know It?” The World Economy, Vol.21, Issue 1, January, pages 1-30.

Edwards, Sebastian, (1999), “On Crisis Prevention: Lessons from Mexico and East Asia,” National Bureau of Economic Analysis Working Paper No. 7233, July, pages 1- 65.

Handout: Mexico: Post-1994 Crisis

East Asia:Corsetti, Giancarlo, Paolo Pesenti and Nouriel Roubini, (1999) “What Caused the Asian

Currency and Financial Crisis?” Japan and the World Economy, Vol. 11, pages 305-373.

Handout: East-Asia: Post-1997/98 Crisis

Argentina:Mussa, Michael (2002) “Argentina and the Fund: From Triumph to Tragedy,” Institute for

International Economics, Washington D.C., chapters 1-4.

Handout: Argentina: Post-2001 Crisis

United States:

Handout: US Financial Crisis Timeline

Goodhart, C.A.E. (2008), “The Background to the 2007 Financial Crisis,” International Economics and Economic Policy, Vol.4, Issue 4, pages 331-346.

Acharya, Viral and Matthew Richardson (2009) “Causes of the Financial Crisis.” Critical Review, Vol. 21, No 2, June, pages. 195-210.

Taylor, John B. (2009) “The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong,” National Bureau of Economic Analysis Working Paper No. 14631, January, pages 1- 30.

Johnson, Simon (2009), “The Quiet Coup: America’s Oligarchs and the Financial Crisis,” The Atlantic, May.

Taylor, John B., (2014), “The Role of Policy in the Great Recession and the Weak Recovery,” American Economic Review: Papers & Proceedings, Vol. 104, No.5, pages 61–66.

Reinhart, Carmen M. and Kenneth S. Rogoff (2008) “Is the 2007 US Sub-Prime Financial Crisis So Different? An International Historical Comparison,” American Economic Review: Papers and Proceedings, Vol.98, No.2, May, pages 339-344.

Reinhart, Carmen M. and Kenneth S. Rogoff (2009) “The Aftermath of Financial Crises,” American Economic Review: Papers and Proceedings, Vol.99, No.2, May, pages 466-472.

Handout: Latest IMF World Economic Outlook Update

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*Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States; http://www.gpoaccess.gov/fcic/fcic.pdf.

*Morgenson, Gretchen and Joshua Rosner (2011), Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon, Times Books.

*Cecchetti, Stephen G., (2008) “Monetary Policy and the Financial Crisis of 2007-2008,” mimeo,Brandeis In-ternational Business School, April.

* Claessen, Stijn and M. Ayhan Kose (2014), “Financial Crises: Explanations, Types, and Implications,” in Financial Crises: Causes, Consequences, and Policy Responses, edited by Stijn Claessens; M. Ayhan Kose; Luc Laeven; Fabian Valencia, Washington: International Monetary Fund.

*Kaminsky, Graciela L. and Carmen M. Reinhart, (1999) “The Twin Crises: The Causes of Banking and Balance-Of-Payments Problems,” American Economic Review, Vol.89, No.3, June, pages 473-500.

*Krugman, Paul (1979) “ A Model of Balance-of-Payments Crises,” Journal of Money, Credit and Banking, Vol. 11, No.3, August, pages 311-325.

*Krugman, Paul (1996) “Are Currency Crises Self-Fulfilling?” NBER Macroeconomics Annual, Vol. 11, Issue 1, pages 345-378.

*Mishkin, Frederic S. (1999) “Lessons from the Tequila Crisis” Journal of Banking and Finance, Vol. 23, pp.1521-1533.

*Reinhart, Carmen M. and Kenneth S. Rogoff (2008), “This Time is Different: A Panoramic View of Eight Centuries of Financial Crises,” National Bureau of Economic Analysis Working Paper No. 13882, March, pages 1- 123.

*Reinhart, Carmen M. and Vincent R. Reinhart (2010), “After the Fall,” National Bureau of Economic Analysis Working Paper No. 16334, September, pages 1- 48.

*Reinhart, Carmen M., Vincent R. Reinhart and Kenneth S. Rogoff (2012), “Public Debt Overhangs: Advanced Economy Episodes since 1800,” Journal of Economic Perspectives, Vol.26, No.3, Summer, pages 69-86.

*Atkinson, Tyler, David Luttrell and Harvey Rosenblum (2013), “How Bad Was It? The Costs and Consequences of the 2007–09 Financial Crisis,” Federal Reserve Bank of Dallas Staff Paper, July, pages 1-24.

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6. Reform of the International Financial Architecture

(i) Exchange Rate Regime:

Fischer, Stanley, (2001) “Exchange Rate Regimes: Is the Bipolar View Correct?” Journal of Economic Perspectives, Vol. 15, No.2, Spring, pages 3-24.

Frankel, Jeffrey, (1999) "No Single Currency Regime is Right for All Countries or at All Times,” National Bureau of Economic Research, Working Paper No.7338, September, pages 1-14.

________________________________

*Calvo, Guillermo A. and Frederic S. Mishkin, (2003) “The Mirage of Exchange Rate Regimes for Emerging Market Countries,” Journal of Economic Perspectives, Vol. 17, No.4, Fall, pages 99-118.

*Eichengreen, Barry, (1999) “Kicking the Habit: Moving from Pegged Rates to Greater Exchange Rate Flexibility,” Economic Journal, March, pages C1-C14.

*Yagci, Fahrettin (2001), “Choice of Exchange Rate Regimes for Developing Countries,” Africa Region Work-ing Paper Series No.16, World Bank, pages 1-30.

(ii) Financial Account Liberalization:

Kose, M. Ayhan, Eswar Prasad, Shang-Jin Wei, and Kenneth Rogoff, (2009) “Financial Globalization and Economic Policies,” Brookings Global Economy and Development Working Paper No.34, April, pages 1-80.

Klein, Michael W (2012), “Capital Controls: Gates Versus Walls,” National Bureau of Economic Research Working Paper No.18526, November, pages 1-43.

Edwards, Sebastian, (1999) “How Effective are Capital Controls?” Journal of Economic Perspectives, Vol. 13, No.4, Fall, pages 65-84.

*Baba, Chikako and Annamaria Kokenyne (2011), “Effectiveness of Capital Controls in Selected Emerging Markets in the 2000s”, International Monetary Fund Working Paper, WP/11/281, December, pages 1-44.

*Magud Nicolas and Carmen Reinhart, (2006) “Capital Controls: An Evaluation,” National Bureau of Eco-nomic Research Working Paper No. 11973, Cambridge: Massachusetts, January, pages 1-40.

*Forbes, Kristin J., (2005) “The Microeconomic Evidence on Capital Controls: No Free Lunch,” National Bu-reau of Economic Research Working Paper No.11372, Cambridge: Massachusetts, May, pages 1-37.

*Henry, Peter Blair, (2007), “Capital Account Liberalization: Theory, Evidence and Speculation,” Journal of Economic Literature, Vol. XLV, pages 887-935, December.

*Prasad, Eswar S.and Raghuram G. Rajan (2008) “A Pragmatic Approach to Capital Account Liberalization,” Journal of Economic Perspectives, Vol. 22, No.3, Summer, pages 149-172.

*Kose, M. Ayhan, Eswar Prasad, Shang-Jin Wei, and Kenneth Rogoff, (2006) “Financial Globalization: A Reappraisal,” IMF Working Paper No.06/189, pages 1-94.

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(iii) Sovereign Debt Restructuring

Das, Udaibir S., Michael G. Papaioannou and Christoph Trebesch, (2012), “Restructuring Sovereign Debt: Lessons from Recent History,” International Monetary Fund, August, pages 1-33.

Eichengreen, Barry, (2003) “Restructuring Sovereign Debt,” Journal of Economic Perspectives, Vol. 17, No.4, Fall, pages 75-98.

Eichengreen, Barry and Ashoka Mody, (2004) “Do Collective Action Clauses Raise Borrowing Costs?” Economic Journal, Vol. 114, No. 495, April, pages 247-264.

Handout: Argentina’s Sovereign Debt Dilemma and the Systemic Implications

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* International Monetary Fund (2013), “Sovereign Debt Restructuring – Recent Developments and Implications for the Fund’s Legal and Policy Framework.

*Krueger, Anne O., (2003) “Sovereign Debt Restructuring: Messy or Messier?” American Economic Review, Vol. 93, No.2, May, pages 70-74.

*Taylor, John, (2002) “Sovereign Debt Restructuring: A U.S. Perspective,” Treasury News, April 2.

* Miller, Marcus and Dania Thomas (2013), “Eurozone Sovereign Debt Restructuring: Promising Legal Prospects?” Working Paper, Centre for Competitive Advantage in the Global Economy, University of Warwick.

*Roubini, Nouriel and Brad Setser, (2004) "The Reform of the Sovereign Debt Restructuring Process: Problems, Proposed Solutions and the Argentine Episode,” Journal of Restructuring Finance, Vol.1, Issue.1, pages 173-184.]

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(iv) International Institutions: The International Monetary Fund (IMF)

International Monetary Fund (2016), IMF at a Glance : Fact s heet

Conway, Patrick, (2006) “The International Monetary Fund in a Time of Crisis: A Review of Stanley Fischer’s IMF Essays from a Time of Crisis: The International Financial System, Stabilization and Development,” Journal of Economic Literature, Vol.XLIV, March, pages 115-144.

Eichengreen, Barry and Ngaire Woods (2016), “The IMF’s Unmet Challenges,” Journal of Economic Perspectives, Vol. 30, No. 1, Winter, pages 29-52.

International Monetary Fund (2016), IMF’s Response to the Global Economic Crisis: Factsheet.

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* Krueger, Anne O., (1998), “Whither the World Bank and the IMF?” Journal of Economic Literature, Vol. 36, No.4, December, pages 1983-2020.

*Fischer, S., (2003) “The Future of the IMF and World Bank: Panel Discussion,” American Economic Review, Vol. 93, No.2, May, pages 45-60.

* Rajan, Raghuram G. (2008) “The Future of the IMF and the World Bank,” American Economic Review: Papers and Proceedings, Vol. 98, No.2, May, pages 110-115.

*Caballero, R. J., (2003) “The Future of the IMF,” American Economic Review, Vol. 93, No.2, May, pages 31-38.

*Steinwand, Martin C. and Randall W. Stone (2008), “The International Monetary Fund: A Review of the Recent Evidence,” The Review of International Organizations, Vol. 3, No.2, June, pages 123-149.

*International Monetary Fund (2009), “Initial Lessons of the Crisis for the Global Architecture and the IMF,” February 18, pages 1-13.

*Bordo, Michael D., and Harold James (2000), “The International Monetary Fund: Its Present Role in Historical Perspective,” National Bureau of Economic Research Working Paper No. 7724, June, pages 1-57.

*Boughton, James M., (2004), “The IMF and the Force of History: Ten Events and Ten Ideas That Have Shaped the Institution,” International Monetary Fund Working Paper WP/04/75, pages 1-25.

*Reinhart. Carmen M. and Christoph Trebesch (2016), “The International Monetary Fund: 70 Years of Reinvention,” Journal of Economic Perspectives, Vol. 30, No. 1, Winter, pages 3-28.

7. Additional Topics: Student Research Papers

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IPS 202: TOPICS IN INTERNATIONAL MACROECONOMICS: CLASS SCHEDULE

(SUBJECT TO CHANGE)

September 27 Tuesday Introduction/SyllabusSeptember 29 Thursday Global External Imbalances

October 4 Tuesday Global External Imbalances/ PS1 Distributed

October 6 Thursday International Monetary System/ Research Proposal Due

October 11 Tuesday International Monetary System/European Monetary Union (EMU)

October 13 Thursday European Monetary Union (EMU)/ PS1 Due/ PS2 Distributed

October 18 Tuesday European Monetary Union (EMU)October 20 Thursday European Monetary Union (EMU)October 25 Tuesday European Monetary Union (EMU)/ PS2 Due/ PS3

DistributedOctober 27 Thursday Crises: Mexico

November 1 Tuesday Crises: East AsiaNovember 3 Thursday Crises: ArgentinaNovember 8 Tuesday Crises: US/ PS3 DueNovember 10 Thursday Crises: US/Exchange Rate Regimes/ PS4

DistributedNovember 15 Tuesday Financial Account LiberalizationNovember 17 Thursday Sovereign Debt Restructuring/ PS4 DueNovember 29 Tuesday Student Research Paper PresentationsNovember 21-25 Thanksgiving Recess: No Classes

December 1 Thursday Student Research Paper PresentationsDecember 6 Tuesday Student Research Paper PresentationsDecember 8 Thursday International Monetary Fund (IMF)December 12 Monday Research Paper Due by Noon

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Attachment I: Course Policies2

Students are responsible for knowledge of the course policies.

Assignments You are welcome to work in groups on the assignments, but you are required to write and submit your own assignment.

Assignments are due in class on the day specified on the assignment. Late work will not count for course credit. It gets a grade of zero. No exceptions.

If you are unable to hand in your assignment in class for any reason, you should submit your assignment early, i.e. before class on the due date either via email or in person . If you submit your assignment via email, it is your responsibility to make sure that the instructor has received your assignment. You should therefore, regularly check for an email acknowledgement of your assignment.

There will be no make-up assignments.There will be no extensions of the assignment deadlines.

Please ensure that you backup your work. Unsaved work is no excuse for not turning in your assignments on time.

Assignment 4: Will be conducted under exam conditions which includes the following: (i) you can communicate with regards to Assignment 4 only with the instructor. This means that there should be no sharing or discussion of Assignment 4 and its answers with anyone other than the instructor. (ii) All work on Assignment 4 should be solely your own work.

The completed Assignment 4 should be uploaded to your Dropbox by the specified deadline. It is your responsibility to ensure that Assignment 4 has successfully uploaded to your Dropbox by the specified deadline.

There will be no make-up Assignment 4 or early or late taking of Assignment 4.

Please ensure that you backup your work. Unsaved work is no excuse for not turning in Assignment 4 on time.

Please familiarize yourself with Stanford’s Honor Code.

Research Paper You need to submit all work related to the research paper on the noted due dates. This includes the paper proposal, discussion of the paper and the paper itself.

The research paper should be submitted via email to the instructor by the specified deadline. It is your responsibility to make sure that the instructor has received the paper and therefore, you should wait for an acknowledgement of receipt of the paper. If you fail to await the acknowledgement of receipt of your paper and your paper was not received successfully by the instructor by the specified deadline, you will receive a grade of zero. No exceptions.

There will be no make-up paper.There will be no extension of the paper deadline.

Please ensure that you backup your work. Unsaved work is no excuse for not turning in your paper on time.

2Includes selected excerpts from the Economics Department Common Syllabus Elements for All Economics Courses.14

Deadlines Late work, whether assignments, research paper, or other graded work, do not count for course credit. It gets a grade of zero. No exceptions.

Note too that no extensions of deadlines will be granted unless there are valid reasons such as an illness verified by a doctor’s letter.

Accessibility or Disability IssuesStudents who have a documented physical, psychological, or learning disability that may necessitate an aca-demic accommodation or the use of auxiliary aids and services in a class must initiate the request with the Of-fice of Accessible Education (OAE), and not with the instructor. The OAE will evaluate the request along with the required documentation, recommend appropriate accommodations, and prepare a verification letter dated in the current academic term in which the request is being made. Students should contact the OAE in the first week of the quarter as timely notice is needed to arrange for appropriate accommodations. The OAE is located at 563 Salvatierra Walk. Also see http://www.stanford.edu/group/OAE/.

Be sure that your instructor, the OAE, and you have a common understanding, at least two weeks before any examination, of the precise logistical arrangements by which you will be accommodated.

Computer Use in ClassComputer use in class is strictly limited to taking class notes. Computer use for non-course related work (e.g. emails, surfing the internet) during class hours, will be issued a warning. If the student continues in this behavior despite the warning, a grading penalty based on the instructor’s discretion will be imposed.

This policy is also applicable to any other non-course related work (e.g. reading of newspapers, work related to other courses, cell phone use) during class hours.

Cell Phones Cell phone use in class is prohibited. Please turn off your cell phones prior to the start of class.

E-mail You are encouraged to communicate with me and your TA via email. However, email is an imperfect substitute for in-person communication. Therefore, please use email only for questions that can be answered via simple text-only responses or to request an appointment.

CourtesyPlease ensure that during student presentations you refrain from doing any work and pay attention to your peers’ presentations.

PunctualityI expect students to be punctual to class. Coming late to class is a disruption not just for the instructor, but for other students as well. It also indicates a lack of commitment to the class. Habitual unpunctuality will warrant a discussion with the instructor. The same applies for habitual early leaving of class. If there is a valid reason for coming late to a class or leaving a class early, please notify the instructor in advance.

Honor CodeIt is your responsbility to read the honor code and to ensure that you abide by it. The course website has a link to the honor code. It is also available at http://www.stanford.edu/dept/vpsa/judicialaffairs/guiding/honorcode.htm

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Attachment IIUseful Data Resources for Economics Research

The following list is by no means comprehensive, but represents websites and databases that you may find helpful for assignments or your research project. For those living off-campus, it may be necessary to set up off-campus access to library resources, as many journals and databases are restricted to Stanford users.3

Bureau of Economic Analysishttp://www.bea.gov/National and international economic accounts data for the United States. National data on domestic production (GDP), consumption, investment, exports/imports, income and saving, etc., as well as international data on the US balance of payments (current account and financial account data), trade in goods and services, etc.

UN Comtrade Databasehttp://comtrade.un.org/db/default.aspxIncorporates international trade statistics data detailed by commodities and partner countries. Time series data starting as far back as 1962.

World Bank (World Development Indicators, etc.)http://databank.worldbank.org/ddp/home.doWorld Development Indicators (WDI) includes global development data (education, economic policy, financial sector, health, infrastructure, etc.). Global Development Finance (GDF) provides external debt and financial flows statistics.

IMF Databasesdata.imf.orgIncludes links to all IMF databases such as the World Economic Outlook Database, International Financial Statistics, Direction of Trade Statistics, Global Financial Stability Report Data and the Fiscal Monitor.

EIU Country DataElectronic Library Resource:http://searchworks.stanford.edu/view/7106896Annual, quarterly and monthly global economic indicators and forecasts, including GDP, inflation, interest rates, wages, foreign debt, exports and imports, etc. This is an online database, but must be accessed through the library catalog.

Thomson Reuters DataStreamAvailable at Jackson Library in the “Trader's Pit”Global financial and macroeconomic data, including stocks, stock indices, bonds, futures, options, interest rates, commodities, derivatives, currencies, and economic data.

Other Data Resources:Country Central Bank websites (e.g. European Central Bank Statistics: http://www.ecb.int/stats/html/index.en.html)

https://atlas.media.mit.edu – international trade data from 1995-present with built-in visualization tools.

3 To set up off-campus access, go to library.stanford.edu. Under “Using the libraries,” click on “Connect from off-campus.” This link provides instructions on setting up your browser to connect to Stanford's authenticated proxy server, thus gaining access to restricted journals and databases when you leave the Stanford campus.

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