topics in international economics seminar

Topics in International Economics Seminar

Universidad de Navarra

April 3, 2008

Agenda Today

• Topics in International Economics: A Bird’s Eye View

• What are you required to do

• Groups

Topics in International Economics

• Monetary Policy Strategies for Open Economies


• Monetary Policy Strategies for Open Economies– Monetary Policy Key to Fine-Tune any Economy


• Monetary Policy Strategies for Open Economies– Monetary Policy Key to Fine-Tune any Economy– Monetary Policy in an Open Economy brings up

additional and important dimensions with respect to Closed Economies




– Exchange Rate Key variable in these economies




– Exchange Rate Key variable in these economies– Why so many small and emerging open

economies fix their exchange rate?




– Exchange Rate Key variable in these economies– Why so many small and emerging open

economies fix their exchange rate?– Is inflation targeting appropriate for these

economies?


• The future of the European Monetary Union (EMU)


• The future of the European Monetary Union (EMU)– EMU: Amazing story… but real


• The future of the European Monetary Union (EMU)– EMU: Amazing story… but real– Monetary Policy in the EMU context not an easy

task!



task!– Will the business cycle be ever synchronized

among different countries such as Finland and Spain?





– Will countries be tempted to leave the euro?





– Will countries be tempted to leave the euro?– Will the euro become more important than the

dollar in the foreign exchange markets?


• Emerging Market Economy Dynamics


• Emerging Market Economy Dynamics– A fact: Up to now, most of the world economic

growth has been concentrated in three areas: Western Europe, North America and Japan (less than 20% of the world population)




– India and China’s growth: How will affect the distribution of wealth across countries and across individuals?





– Is their growth sustainable? Will they ever converge to standard free-market economies?





– Is their growth sustainable? Will they ever converge to standard free-market economies?

– What are their challenges ahead?


• Capital Flows and Economic Growth


• Capital Flows and Economic Growth– Big question: Are capital flows good for the

receiving country? And for the investor country?



receiving country? And for the investor country?– What kinds of flows are good? Short-run v/s

Long-run. Capital flows/ Portfolio Flows v/s FDI




Long-run capital flows/ Portfolio Flows v/s FDI– How should a developing country open their

capital account? What should the timing be?





capital account? What should the timing be?– Capital controls: Theory and evidence





capital account? What should the timing be?– Capital controls: Theory and evidence– Positive Spillover Effects of Capital Flows for the

receiving country


• Global Imbalances


• Global Imbalances– Are Large and Lasting Current Account Deficits

Sustainable?



Sustainable?– The US Current Account Deficit: Causes and

Consequences




Consequences– The adjustment through the exchange rate. Was

the depreciation of the dollar expected?





the depreciation of the dollar expected?– Do Current Account Deficits lead to recessions?

The Case of Spain





the depreciation of the dollar expected?– Do Current Account Deficits lead to recessions?

The Case of Spain– Surplus in Current Accounts and International

Reserve Accummulation


• Balance of Payments Crises


• Balance of Payments Crises– Fixed exchange rates and Speculative Attacks…

against a currency



against a currency– Fiscal policy and Speculative Attacks



against a currency– Fiscal policy and Speculative Attacks– Opening the Capital Account and Speculative

Attacks




Attacks– Banks’ Balance Sheets and Speculative Attacks




Attacks– Banks’ Balance Sheets and Speculative Attacks– Predicting Balance of Payments Crises


• Recent Banking Crises


• Recent Banking Crises– Banking Regulation


• Recent Banking Crises– Banking Regulation– The sub-prime crises, so different from others?


• Recent Banking Crises– Banking Regulation– The sub-prime crises, so different from others?– Anatomy of a standard banking crises


• Recent Banking Crises– Banking Regulation– The sub-prime crises, so different from others?– Anatomy of a standard banking crises– Relation Between Banking Crises and Balance of

Payments Crises


• International Trade Issues


• International Trade Issues– Bilateralism v/s Multilateralism


• International Trade Issues– Bilateralism v/s Multilateralism– Trade Areas: Building Blocks or Stumbling

Blocks?



Blocks? – Tariff Reduction Schemes



Blocks? – Tariff Reduction Schemes– Trade and Poor Countries

What do you have to do?

• Nothing!


• Nothing!

• Just kidding…


• Prepare a Power-Point Presentation of one of the papers suggested in the syllabus



• A 30 mins (aprox.) presentation


• Prepare One Power-Point Presentation of one of the papers suggested in the syllabus

• Do A 30 mins (aprox.) presentation

• It will be discussed here in front of Faculty and students



• A 30-35 mins (aprox.) presentation

• It will be discussed here in front of Faculty and students

• You will be working in groups


• How should the presentation be?


• How should the presentation be?– Informed

• Really learn the topic and paper you are presenting. You can look up other papers, ask us… ask questions




– Clear!• Talk loud• Do not write many things per power-point

overhead• Graphs, we love graphs




– Clear!• Talk loud• Do not write many things per power-point

overhead• Graphs, we love graphs

– Structure• Motivation: Why is this topic important?• Summary of the paper: Main Points, Message• Strong Points of the paper• Your own critique of the paper


• You have to attend every session


• You have to attend every session

• You are encouraged to actively participate in the discussions


• Margarita Pérez López • Laura Riba• Marta Goñi• Mercedes Robles

• Galder del Campo • Josu Rodríguez Sedano• Rubén Romera

• Mercedes Erdozáin• Rita Ruiz de Alda• Jaime Piñeiro

Groups

• Bernard Paternina• Meilssa Padilla• Juana Galíndez

• Fermín Alarcón• Rafael Mata• Julián Bermúdez• Mayte Serraclara

• Javier Olábarri• Raúl Bajo

Groups

• Claudia González • Javier López• Julián Bermúdez

• Fahey Sheble• Christine Cramblit• Claudia González• Javier López

• Carlos Eugui• Bo-Yun Liu

Groups

topics in international economics seminar

Documents

realmonetary policy

economymonetary policy

open economy

open economiestopics

european monetary union

emerging open economies

amazing story

important dimensions