Global Economy: Emergence and Current Issues

Transcription

1 COURSE SYLLABUS Global Economy: Emergence and Current Issues Instructor: Julius Horvath, Professor, Ph.D. Department of Economics, IRES, CEU Semester/term, year Fall Semester 2014 Course level Master level class No. of Credits: 4 CEU credits (8 ECTS Credits) Pre-requisites No special pre-requisites are required. This course is accessible to anyone with a solid under-graduate background in social sciences. Course e-learning site Status: Mandatory course for MA students of Economic Policy Program, Elective Course for IRES students Teaching format: 4-hours per week, Fall Semester Course Description This course presents systematic explanation of the emergence of the global economy. Also in this course we discuss a variety of current issues of the global economy. The main goal is to provide students with understanding of historical evolution of the global economy as well as some of its current driving forces. In addition students are also led to formulate their own research question in the topic of their interest. Learning Outcomes The syllabus covers wide ranging areas. In this course students are able to understand some important articles and concepts of the global economy. By the end of this course, students will be able to: - critically discuss issues concerning the emergence of modern global economy - critically discuss some issues of globalization in monetary and real economy - analyze major issues in global economy - reflect about positive and negative consequences of economic globalization - grasp the various connections between different issues in globalization debate Course Requirements (1) Assessment type 1 (10% of the final grade): presence and activity in class (2) Assessment type 2 (20% of the final grade): quizzes (3) Assessment type 3 (15% of the final grade): presentation of paper in the class (4) Assessment type 4 (55% of the final grade): final paper

2 More detailed display of contents: 1. Globalization: Introduction 2. Economics and History, Politics, Culture 3. Starting Conditions: Nature, Geography / Underdevelopment 4. World Economy till the Modern Era, Malthusian World 5. Emergence of Modern Growth: Industrial Revolution, Why Europe and England? 6. Convergence, Divergence, Inequalities 7. International Monetary Affairs 8. Imbalances, Crisis, Currencies 9. European Monetary Union, Euro 10. Command Economy: Soviets, China 11. Transition Economics 12. Great Depression 13. International Monetary Fund 1. Globalization: Introduction Jagdish Bhagwati, In Defense of Globalization, Oxford University Press 2004, Chapter One: Anti Globalization: Why?, pp 3-27 Fischer, Stanley, Globalization and Its Challenges, American Economic Review Papers and Proceedings, May 2003, pp 1 30 Frankel, Jeffrey, "Globalization of the Economy," in Governance in a Globalizing World, edited by Joseph S. Nye and John D. Donovan, Brookings, 2000, pp Stiglitz, Joseph E, The Overselling of Globalization, in Weinstein, Globalization, What's New, Columbia University Press 2005, pp Easterly, William. "Globalization." The New Palgrave Dictionary of Economics, Second Edition, ed Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, Economics and History, Politics, Culture Nunn, Nathan, "The Importance of History for Economic Development," Annual Review of Economics, 2009, 1, Acemoglu, Daron and James A. Robinson,Economics versus Politics: Pitfalls of Policy Advice, Journal of Economic Perspectives Vol 27, No 2 Spring 2013 pp David, Paul, "Clio and the Economics of QWERTY,"American Economic Review, 1985, 75:2 (May), pp Solow, Robert M, Economic History and Economics American Economic Review, 1985, 75:2, May pp Keynes, John Maynard, Essays in Persuasion, Economic Possibilities for Our Grandchildren, New York, W.W. Norton, 1963, pp

3 O'Rourke, Kevin, Why Economics Needs Economic History, 24 July 2013, Uhlig, Harald, Economics and Reality, NBER WP 16416, 2010, pp 1-8 to read Blanchard, Olivier, The Economic Future of Europe, The Journal of Economic Perspectives, Vol. 18, No. 4 (Autumn, 2004), pp Barro, Robert J. Barro and Rachel M. McCleary, Religion and Economic Growth, WP NBER 9682, Guiso, Luigi, Paola Sapienza, and Luigi Zingales "Does Culture Affect Economic Outcomes?"Journal of Economic Perspectives Volume 20, Number 2 Spring 2006 Pages Starting Conditions: Nature, Geography / Underdevelopment Landes, David S., The Wealth and Poverty of Nations, W.W. Norton, 1998, Chapter 1: Nature s Inequalities, pp 3-16, Sachs, Jeffrey D., Globalization and Patterns of Economic Growth, in Globalization What's New? edited by Michael Weinstein, Council of Foreign Relations, 2005, Columbia University Press, pp Collier, Paul and Jan Willem Gunning, Why has African Grown Slowly?, Journal of Economic Perspectives, 1999, 3, pp 3-22 Allen, Robert C., History of Global Economy, The Very Short Introduction, Oxford University Press, Chapter 7 Africa, pp Sachs, Jeffrey D., "Tropical Underdevelopment," NBER Working Paper No. 8119, 2001 Weisdorf, Jacob, From Foraging to Farming: Explaining the Neolithic Revolution, Journal of Economic Surveys, September 2005, Volume 19, Issue 4, pp World Economy till the Modern Era, Malthusian World Mokyr, Joel, The Intellectual Origins of Modern Economic Growth, The Journal of Economic History, Vol. 65, No. 2 (June 2005), pp David, Paul, The Historical Origins of Open Science : An Essay on Patronage, Reputation, and Common Agency Contracting in the Scientific Revolution, Capitalism and Society, Volume 3, Issue 2, 2008 Article 5, pp Clark, Gregory, A Farewell to Alms. A Brief Economic History of the World, Princeton University Press, Chapter 2 The Logic of the Malthusian Economy, pp Allen, Robert C., Global Economic History, A Very Short Introduction, Oxford University Press, 2011, Chapter 2, The Rise of the West pp Emergence of Modern Growth: Industrial Revolution, Why Europe and England? Landes, David, Why Europe and the West and Why not China?, Journal of Economic Perspectives Volume 20, Number 2, Spring 2006, pp Landes, David S., Why Are We so Rich and They so Poor? Richard T. Ely Lecture, American Economic Review, 1990, May pp Landes, David S., The Wealth and Poverty of Nations, W.W. Norton, 1998, Chapter 13, The Nature of Industrial Revolution, pp

4 Allen, Robert C, Global Economic History, Oxford University Press, 2011 Chapter 3, The Industrial Revolution, pp 27-39, Chapter 4, The Ascent of the Rich, 40-52, Allen, Robert C, Global Economic History, Oxford University Press, 2011 Chapter 5, The Empires, 53-63, Chapter 6, The Americas Clark, Gregory, "Why Isn t the Whole World Developed? Lessons from the Cotton Mills," Journal of Economic History, :1 March, pp O Rourke, Kevin and Jeffrey G. Williamson, When Did Globalization Begin? European Review of Economic History, Vol. 6, No. 1, April 2002, pp 23-50, also as NBER WP 7632, April 2000 Temin, Peter Two Views of the Industrial Revolution, Journal of Economic History 57 March 1997, pp Voth, Hans Joachim, "Time and Work in Eighteenth Century London", Journal of Economic History 58 March 1998, pp Convergence, Divergence, Inequalities Bourguignon, François. "Inequality between Nations." The New Palgrave Dictionary of Economics, second edition, Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008 Pritchett, Lant, Divergence, Big Time, Journal of Economic Perspectives, Summer 1997, 3-17 Howitt, Peter and David N. Weil. "Economic Growth" The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, Piketty, Thomas, Capital in the Twenty-First Century, the Belknap Press of Harvard University Press, 2014 Mancur, Olson Jr., Big Bills Left on the Sidewalk: Why Some Nations are Rich and Others Poor, Journal of Economic Perspectives, Volume 10, Number 2, Spring 1996, pp O'Rourke, Kevin H. Globalization and Inequality: Historical Trends, NBER, 2001 Working Paper 8339 Williamson, Jeffrey (2002) Winners and Losers Over Two Centuries of Globalization, NBER Working Paper No International Monetary Affairs Eichengreen, Barry, Globalizing Capital. A History of the International Monetary System, Princeton University Press, 1996, Chapter Two, The Gold Standard pp.7-42 Eichengreen, Barry, Globalizing Capital. A History of the International Monetary System, Princeton University Press, 1996, Chapter Three, The Interwar Period pp Eichengreen, Barry and Peter Temin. "The Gold Standard and the Great Depression." Contemporary European History 9, 2 (2000): Bordo, Michael D., and Hugh Rockoff, The Gold Standard as a Good Housekeeping Seal of Approval Journal of Economic History 56, no. 2 (1996): Imbalances, Crisis, Currencies 4

5 Obstfeld Maurice, and Alan M. Taylor, Chapter 1, Global Capital Markets: Overview and Origins, in their Global Capital Markets: Integration, Crisis and Growth, Cambridge, University Press, 2004, pp Mishkin, Frederic S., Over the Cliff: From the Subprime to the Global Financial Crisis Journal of Economic Perspectives Volume 25, Number 1 Winter 2011 Pages Cooper, Richard N., Global Imbalances: Globalization, Demography, and Sustainability, Journal of Economic Perspectives, Volume 22, Number 3, Summer 2008, pp Feldstein, Martin, Resolving the Global Imbalance: the Dollar and the U.S. Saving Rate, Journal of Economic Perspectives, Volume 22, Number 3, Summer 2008, pp Gros, Daniel, Why the US Current Account Deficit is Not Sustainable, International Finance, 9:2, 2006, pp Hausmann, Ricardo, and Federico Sturzenegger, Why the US Current Account Deficit is Sustainable, International Finance, 2006, pp Brunnermeier, Markus K., Deciphering the Liquidity and Credit Crunch , Journal of Economic Perspectives, Volume 23, Number 1, Winter 2009, pp Reinhart, Carmen M., and Kenneth S. Rogoff This Time is Different: A Panoramic View of Eight Centuries of Financial Crises NBER Working Paper, 2008, 13882, March Calomiris, Charles and Stephen Haber, Fragile by Design, The Political Origins of Banking Crises and Scarce Credit, Princeton European Monetary Union, Euro de Grauwe, Paul, Economics of Monetary Union, Oxford University Press, 2012, Chapter 1 Lane, Philip R., The European Sovereign Debt Crisis, Journal of Economic Perspectives, 2012, Summer, Volume 26, Number 3, Spolaore, Enrico, What is European Integration Really about? A Political Guide to Economists, Journal of Economic Perspectives, Volume 27, Number 3, Summer 2013, Chinn, Menzie, and Jeffrey Frankel, Why the Euro Will Rival the Dollar, International Finance, 11:1, 2008, pp Posen, Adam S., Why the Euro will Not Rival the Dollar, International Finance, 11:1, 2008, pp Feldstein, Martin, The Political Economy of the European Economic and Monetary Union: Political Sources of an Economic Liability, Journal of Economic Perspectives, Fall 1997 pp Command Economy: Soviets, China Ericson, Richard, Command Economy, the New Palgrave, Second Edition 2008, edited by N. Durlauf and Lawrence E. Blume Ofer, Gur, Soviet Growth Record, the New Palgrave Dictionary of Economics, Second Edition 2008 edited by N. Durlauf and Lawrence E. Blume Yasheng Huang, How Did China Take Off?, Journal of Economic Perspectives Vol 26, No 4 Fall 2012 pp

6 Xiaodong Zhu, Understanding China s Growth: Past, Present, and Future, Journal of Economic Perspectives Vol 26, No 4 Fall 2012 pp Dennis Tao Yang, Aggregate Savings and External Imbalances in China, Journal of Economic Perspectives Vol 26, No 4 Fall 2012 pp Gregory Paul and Mark Harrison, Allocation under Dictatorship: Research in Stalin s Archives, Journal of Economic Literature Vol. XLIII (September 2005), pp Ericson, Richard E., "The Classical Soviet-Type Economy: Nature of the System and Implications for Reform." Journal of Economic Perspectives 5: 4, Fall 1991, pp Dallin, Alexander, "Causes of the Collapse of the USSR," Post-Soviet Affairs, no. 4, 1992, pp Bergson, Abram, The USSR before the Fall: How Poor and Why, Journal of Economic Perspectives Volume 5, Number 4 Fall 1991 Pages Wei Li, Maoist Economics, Palgrave Dictionary, Second Edition 2008, edited by Steven Durlauf and Lawrence Blume 11. Transition Economics Roland, Gerard, Transition and Economics, Politics, Markets and Firms, The MIT Press, 2000, Chapter 1 Understanding Transition, pp 1-22 Kornai, Janos. The Great Transformation of Central Eastern Europe, Economics of Transition 14:2, 2006, pp Aslund, Anders, The Transformation of Central and Eastern Europe, Russia and Central Asia, Cambridge University Press, 2007, Chapter Two, Shock Therapy versus Gradualism, pp , Chapter Three, Output: Slump and Recovery, pp , Chapter Five, From Hyperinflation to Financial Stability, pp Guriev, Sergei, and Andrei Rachinsky, The Role of Oligarchs in Russian Capitalism, Journal of Economic Perspectives Volume 19, Number 1 Winter 2005 Pages Estrin, Saul, Privatization impacts in transition economies, The New Palgrave Dictionary of Economics, Second Edition, 2008 Edited by Steven N. Durlauf and Lawrence E. Blume If Time Allows 12. Great Depression Bernanke, Ben S., The Macroeconomics of the Great Depression: A Comparative Approach, Journal of Money, Credit, and Banking 27, No. 1 (February 1995): Kindleberger, Charles P. The World in Depression, Berkeley: University of California Press, Chs. 5, 6 and 14 Temin, Peter, Lessons from the Great Depression, The MIT Press, Lecture 1, The Spoils of War: The Cause of the Great Depression, pp Hall, Thomas E. and J. David Ferguson, The Great Depression. An International Disaster of Perverse Economic Policies, University of Michigan Press, 1998 Bairoch, Paul, Economics and World History. Myths and Paradoxes, The University of Chicago Press, 1993, Chapter 1The 1929 Crash and the Great Depression, pp

7 Fisher, Irving (October 1933). "The Debt-Deflation Theory of Great Depressions", Econometrica 1 : Galbraith, John Kenneth, The Great Crash 1929, Houghton Mifflin Company Boston, International Monetary Fund Rodrick, Dani, One Economics Many Recipes, Princeton University Press 2007, Chapter 1, Fifty Years of Growth (and Lack Thereof) an Interpretation, pp Fischer, Stanley, On the Need for an International Lender of Last Resort, The Journal of Economic Perspectives, Vol. 13, No. 4. (Autumn, 1999), pp Meltzer, Allan, A Blueprint for IMF Reform: What is Worth Retaining?, International Finance, 10:2, 2007, pp Eichengreen, Barry, A Blueprint for IMF Reform: More than just a Lender, International Finance 10:2, 2007, pp de Gregorio, Jose, Barry Eichengreen, Takatoshi Ito, and Charles Wyplosz, An Independent and Accountable IMF, International Center for Monetary and Banking Studies, 1999 Eichengreen, Barry, Globalizing Capital. A History of the International Monetary System, Princeton University Press, 2008, Second edition, Chapter Four, The Bretton Woods System, pp