International Monetary Economics Marcus Miller and Emanuel Kohlscheen

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International Monetary EconomicsMarcus Miller
and Emanuel Kohlscheen
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• Aim
• To offer an analytical introduction to key issues
  in international monetary economics, including
  the way in which the international financial
  system is (or is not) coping with capital account
  liberalisation.
• Approach
• Economic and political economy models will be
  used
• and
• case studies considered.

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Focus

• The focus is on Emerging Market Economies (EMEs)
  which have suffered Sudden Stops in capital
  flows, and major balance sheet problems as a
  result.
• Interestingly this experience is proving relevant
  to OECD countries in the current credit crunch
  Nouriel Roublini, who studied EMEs, was one of
  the first to forsee the nature and depth of this
  crisis.
• Delivery Nine two hour lectures and six
  classes.
• Assessment to answer two out of five
  questions in two hour exam

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• Topics/Models
• Flex-price monetary model and Krugmans first
  generation model of speculative attack due to
  excess public spending
• 2. Sticky price macro-models and second
  generation multiple equilibrium models of crisis
  due to a lack of political pre-commitment with
  application to Mexico 1995

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• Private information and the onset of crisis
  Morris and Shins critique of the multiple
  equilibrium view
• Liability dollarisation or Original Sin and
  3rd-Generation models of multiple equilibria
  due to balance sheet effects
• 5. Leverage and Asset bubbles elements of the
  East Asian Crisis

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• B. Systemic responses
• International Financial Architecture - s/he who
  would be Keynes?
• Bail-outs and Moral Hazard
• Debt Write-downs and endogenous growth Sachs
  critique of the Paris Club policies, especially
  in Africa

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• Some recent Dissertation titles
• Growth and crisis effects of capital account
  liberalisation an econometric study
• Has India been accumulating excess reserves?
• Oil Prices Can economic fundamentals justify
  them?
• Should there be a new Country Insurance
  Facility for the IMF?
• Aid and growth in developing countries a cross
  section study
• The effect of the HIPC initiative on Recipient
  Countries an econometric assessment