Amherst++Econ+70+Syllabus+2010

8/7/2019 Amherst++Econ+70+Syllabus+2010

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Syllabus

Economics 70

Seminar in International Monetary Economics

Wednesdays: 2:00 to 4:30 p.m.

Room: Red Room, Converse

Edwin M. TrumanVisiting Lecturer

Office Hours: Wednesday 12:00 to 2:00 p.m.

Converse 309: 542-5446E-mail: [email protected], [email protected], [email protected]

(When in doubt use more than one e-mail address!)

Organization

The seminar is designed to explore various aspects of the international economic policy

coordination process.

Students are expected to do the required reading and to participate actively in the seminar

discussions.

Each student will make a presentation on his/her paper topic and prepare a final paper on that

topic.

Grades will be based 50 percent on the final paper, 25 percent on the seminar presentation, and

25 percent on seminar participation.

The first few sessions of the seminar will be based on general discussion and reading. Igenerally will circulate about a week in advance of each session some questions to motivate your

reading and our subsequent discussion. When no student presentation is scheduled during the

first part of the semester, I will assign students in advance to lead the discussion based on thesequestions, for example, one question each out of a set of four or five questions. The remaining

sessions will focus on student presentations. I will assign a student in advance to lead the

discussion of each student presentation; the discussion leader will be required to circulatehis/her topics for discussion at least 24 hours in advance of the class.

On March 31, we will have a guest Steven R. Weisman, editorial director and public policyfellow at the Peterson Institute for International Economics and former chief internationaleconomics correspondent of the New York Times, who will discuss with us the global economic

and financial crisis of 2007-09.

Presentations and Papers

Each student will be required to make a presentation and write a paper on one of 18 episodes ininternational economic policy coordination listed below.

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mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Each student should select the episode that she/he will address by February 10 and inform me,

preferably by e-mail. Assuming there will be at least 18 students in the class, two students willhave to make presentations on February 17. I expect that earlier presentations will be less

complete and will make allowance for that fact. These students will have more time available to

produce the final paper in light of my comments reactions. Therefore, it pays to make your

choice early! This is an exercise in responding to tradeoffs and incentives!

If absolutely necessary, because there are more than 18 students in the seminar, more than onestudent may choose a particular episode; in that case, I will endeavor to suggest differentorientations. There will be a maximum of two topics per session. I will rigorously enforce thisrequirement in order to ensure that there is some time for discussion.

Except for the presentations on February 17 and 24, students should distribute electronically tome and to others in the seminar at least an outline of their presentations one week in advance.For example, outlines of presentations on March 3 (the first such session) should be circulated by

February 24. For February 17 and 24 sessions, the outlines should be distributed by Monday

morning February 15th and 22nd respectively.

Structure of Presentation and Paper: With respect to each episode, the class presentation and

paper should cover the following eight elements: (1) description of the problem, (2) diagnosis

of the problem, (3) whether the analytical framework was widely agreed among authorities, (4)whether that diagnosis was right, (5) description and evaluation of any policy actions or

inactions, (6) the nature of any policy coordination, (7) the lessons to be learned, and how what

you learned about this episode connects with other episodes the seminar has considered. With

the exception of the presentations on April 14, 21, and 28, students will be expected to use

this common framework in their presentations and papers.

Final papers are due to me electronically by May 12 at the latest!

Reading

All Required reading is on Electronic Reserve; except as noted or where links are provided.

All other reading is on Regular Reserve, except as noted or where links are provided. Theother reading is designed primarily to assist students in the research for their presentations and

papers.

Items marked * are posted on Blackboard under Course Documents.

I may circulate/post a few other items during the semester.

The last page contains information on some useful reference sources.

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Outline of the Course

January 27 Introductory Meeting

Background Reading:

Truman, Edwin M. 2004. A Critical Review of Coordination Efforts in the Past in

Macroeconomic Policies in the World Economy, ed. Horst Siebert. Berlin: SpringerVerlag.

* Truman, Edwin M. 2006. What Can Exchange Rates Tell Us? in C. Fred Bergsten and the

World Economy, ed. Michael Mussa. Washington: Peterson Institute for International

Economics (pages 161- 213).

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February 3 Economic Policy Coordination: Instruments

Reading:

Required:

* Woglom, Geoffrey. Notes on Open Economy, based on Mankiw textbook on

Macroeconomics; see below

REVIEW (on Regular Reserve in Frost if students do not have a copy)Mankiw, N. Gregory. 2003. Aggregate Demand in the Open Economy, including appendix.

Chapter 12 in Macroeconomics. New York: Worth Publishers.

OR

Yarbrough, Beth V., and Robert M. Yarbrough. 2006. Prices and Output in an OpenEconomy. Chapter 15, in particular pages 498-507 in The World Economy: Trade and

Finance. Mason, OH: Thomson South-Western.

Other:

Edison, Hali J. 1993. The Effectiveness of Central Bank Intervention: A Survey of the Literatureafter 1982. Special Papers in International Economics 18 (July). Princeton: Princeton

University, International Finance Section.* Dominquez, Kathryn M. 2003. Foreign Exchange Market Intervention: Did it Work in the

1990s? InDollar Overvaluation and the World Economy, eds. C. Fred Bergsten and

John Williamson. Washington, DC: Institute for International Economics (pages 217-245).

Henderson, Dale W. and Stephanie Sampson. 1983. Intervention in Foreign Exchange

Markets: A Summary of Ten Staff Studies. Federal Reserve Bulletin 69 (November):pages 830-836.

Kenen, Peter B. 1988. Coordinating National Economic Policies. In Managing ExchangeRates. New York: Council on Foreign Relations (pages 74-93).

Obstfeld, Maurice. 1995. International Currency Experience: New Lessons and Lessons

Relearned. Brookings Papers on Economic Activity: 1 (pages 119-196).* Truman, Edwin M. 2003. The Limits of Foreign Exchange Market Intervention. InDollar

Overvaluation and the World Economy, eds. C. Fred Bergsten and John Williamson.Washington: Institute for International Economics (pages 247-265).

* Williamson, John. 2007. The Reference Rate Proposal (Chapter 2, pages 5-12) and

Hypothetical History (Chapter 7, pages 39-51). InReference Rates and The

International Monetary System. Washington: Peterson Institute for International

Economics.

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February 10 Economic Policy Coordination: Theory and Institutions

Reading:

Required:

Bryant, Ralph C. 1995. Preface (pages xiii-xxv) and Alternative Forms of Cooperation

(pages 6-34). International Coordination of National Stabilization Policies.Washington: Brookings Institution.

Meyer, Laurence H., Brian M. Doyle, Joseph E. Gagnon, and Dale W. Henderson. 2002.International Coordination of Macroeconomic Policies: Still Alive in the New

Millennium? International Finance Discussion Papers 723. Washington, DC: Board of

Governors of the Federal Reserve System.http://www.federalreserve.gov/pubs/ifdp/2002/723/ifdp723.pdf

Sobel, Mark, and Louellen Stedman. 2006 The Evolution of the G-7 and Economic PolicyCoordination. Department of the Treasury, Office of International Affairs, Occasional

Paper No. 3 (July). http://www.ustreas.gov/offices/international-affairs/occasional-paper-series/07-07-06%20Occasional%20Paper%203.pdf

Other:

Bryant, Ralph C. 1987. Intergovernmental Coordination of Economic Policies: An InterimStocktaking. In Paul A. Volcker, Ralph C. Bryant, Leonard Gleske, Gottfried Haberler,

Alexandre Lamfalussy, Shijuro Ogata, Jesus Silva-Herzog, Ross M. Starr, James Tobin

and Robert Triffin. International Monetary Policy Cooperation: Essays in Honor of

Henry C. Wallich. Essays in International Finance 169. Princeton University:

International Finance Section (December) (pages 4-15).

Branson, William H., Richard N. Cooper, Michael Emerson, and Louka T. Katseli. 1985. PanelDiscussion: The Prospects for International Economic Policy Coordination. In

International Economic Policy Coordination, eds. Willem H. Buiter and Richard C.

Marston. Cambridge: Cambridge University Press (pages 366-83).Frenkel, Jacob A., Morris Goldstein, and Paul R. Masson. 1996. International Coordination of

Economic Policies. InFunctioning of the International Monetary System, eds. Jacob A.Frenkel and Morris Goldstein. Washington: International Monetary Fund (pages 17-59).Fischer, Stanley. 1988. International Macroeconomic Policy Coordination. InInternational

Economic Cooperation, ed. Martin Feldstein. Chicago: Chicago University Press (pages

11-43).

Horne, Jocelyn and Paul R. Masson. 1988. Scope and Limits of International EconomicCooperation. International Monetary Fund Staff Papers 15, no. 2: 259-296.

Boughton, James M. 2001. Policy Cooperation: The Fund and the Group of Seven Chapter 4 inThe Silent Revolution: The International Monetary Fund 1979-89. Washington:International Monetary Fund. http://www.imf.org/external/pubs/ft/history/2001/ch04.pdf

NOTE: This and other histories of the IMF are very useful reference volumes. The

chapters of this volume are available online. http://www.imf.org/external/pubs/ft/history/2001/* Truman, Edwin M. 2006. The Agenda for IMF Reform. InA Strategy for IMF Reform.

Washington: Institute for International Economics (pages 1-21).

* Truman, Edwin M. 2006. Role in the International Monetary System. InA Strategy for IMF

Reform. Washington: Institute for International Economics (pages 45-59).* C. Fred Bergsten. 2006. A New Steering Committee for the World Economy. In

Reforming the IMF for the 21st Century. Washington: Institute for International

Economics (pages 279-292).

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http://www.federalreserve.gov/pubs/ifdp/2002/723/ifdp723.pdfhttp://www.ustreas.gov/offices/international-affairs/occasional-paper-series/07-07-06%20Occasional%20Paper%203.pdfhttp://www.ustreas.gov/offices/international-affairs/occasional-paper-series/07-07-06%20Occasional%20Paper%203.pdfhttp://www.imf.org/external/pubs/ft/history/2001/ch04.pdfhttp://www.imf.org/external/pubs/ft/history/2001/ch04.pdfhttp://www.imf.org/external/pubs/ft/history/2001/http://www.federalreserve.gov/pubs/ifdp/2002/723/ifdp723.pdfhttp://www.ustreas.gov/offices/international-affairs/occasional-paper-series/07-07-06%20Occasional%20Paper%203.pdfhttp://www.ustreas.gov/offices/international-affairs/occasional-paper-series/07-07-06%20Occasional%20Paper%203.pdfhttp://www.imf.org/external/pubs/ft/history/2001/ch04.pdfhttp://www.imf.org/external/pubs/ft/history/2001/


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* C. Fred Bergsten and C. Randall Henning. 1996. Introduction and The Role and Record of

the G-7. In Global Economic Leadership and the Group of Seven by C. Fred Bergstenand C. Randall Henning. Washington: Institute for International Economics (pages 1-

25).

Bryant, Ralph C. 2004. Crisis Prevention and Prosperity Management for the World Economy.

Washington: Brookings Institution.Crockett, Andrew. 1989. The Role of International Institutions in Surveillance and Policy

Coordination. In Macroeconomic Policies in an Interdependent Worldeds. Ralph C.Bryant, David A. Currie, Jacob A. Frenkel, Paul R. Masson, and Richard Portes.Washington: International Monetary Fund (pages 343-80).

Dobson, Wendy. 1991. Economic Policy Coordination: Requiem or Prologue? Policy

Analyses in International Economics 30. Washington: Institute for InternationalEconomics.

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February 17 The Late 1960s and Mid 1970s

Episodes:

1. Breakdown of the Bretton Woods System: 1969-73

2. Oil Crisis and Global Recession: 1973-75

Reading:

Required:#

Solomon, Robert. 1982. The Road to Camp David and From Camp David to the

Smithsonian. In Robert Solomon The International Monetary System: 1945-1981. New

York: Harper & Row (pages 176-215).

Solomon, Robert. 1982. Inflation, Recession, and Stagflation in the 1970s. In RobertSolomon The International Monetary System: 1945-1981. New York: Harper & Row

(pages 298-315).

Review as appropriate relevant portions of Truman readings from January 27.

Other:

Garber, Peter M. The Collapse of the Bretton Woods Fixed Exchange Rate System. InA

Retrospective on the Bretton Woods System: Lessons for International Monetary Reform ,eds. Michael D. Bordo and Barry Eichengreen (pages 461-93).

Obstfeld, Maurice. 1993. The Adjustment Mechanism. InA Retrospective on the Bretton

Woods System: Lessons for International Monetary Reform, eds. Michael D. Bordo andBarry Eichengreen (pages 201-264).

Solomon, Robert. 1982. The International Monetary System: 1945-1981. New York: Harper &

Row (Chapters VI to XIV).Volcker, Paul A., and Toyoo Gyohten. 1992. Breakdown. In Paul A. Volcker and Toyoo

Gyohten Changing Fortunes: The Worlds Money and the Threat to AmericanLeadership. New York: Times Books (pages 59-100).

To the extent that presentations will be made on each of the episodes.

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February 24 The Late 1970s

Episodes:

3. Locomotives: 1976-77

4. The Bonn Summit: 1976-78

Reading:

Required:#

Holtham, Gerald. 1989. German Macroeconomic Policy and the 1978 Bonn Economic

Summit. In Richard N. Cooper, Barry Eichengreen, C. Randall Henning, Gerald

Holtham, and Robert D. Putnam Can Nations Agree: Issues in International Economic

Cooperation. Washington, DC: Brookings Institution (pages 141-177).The Bonn Summit Conference Declaration. In Richard N. Cooper, Barry Eichengreen, C.

Randall Henning, Gerald Holtham, and Robert D. Putnam Can Nations Agree: Issues inInternational Economic Cooperation. Washington, DC: Brookings Institution (pages118-126).


Other:

Putnam, Robert D. and C. Randall Henning. 1989. The Bonn Summit of 1978: A Case Study

in Coordination. In Richard N. Cooper, Barry Eichengreen, C. Randall Henning, GeraldHoltham, and Robert D. Putnam Can Nations Agree: Issues in International EconomicCooperation (pages 12-140). Washington, DC: Brookings Institution.

Romer, Christina D., and David H. Romer. 2002. The Evolution of Economic Understandingand Postwar Stabilization Policy. InRethinking Stabilization Policy. Federal Reserve

Bank of Kansas City: pages 11-78.


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March 3 Global Debt Crises

Episodes:

5. The Global Debt Crisis: 1982-83

6. The Asian Financial Crisis: 1997-98

Reading:

Required:#

* Cline, William R. 1983. Origins of the Problem and Systemic Vulnerability and

Emergency Response. InInternational Debt and the Stability of the World Economy.

Washington: Institute for International Economics (pages 13-44).

* Roubini, Nouriel, and Brad Setser. 2004. New Nature of Emerging-Market Crises chapter 2inBailouts or Bailins? Responding to Financial Crises in Emerging Markets.

Washington: Peterson Institute for International Economics (pages 25-72).

Other:

Kindleberger, Charles P., and Robert Z.Aliber. 2005. Manias, Panics, and Crashes: A History of

Financial Crises. New York: Wiley.Reinhart, Carmen M., and Kenneth S. Rogoff. 2008. This Time is Different: A Panoramic View

of Eight Centuries of Financial Crises. NBER Working Paper 13882 (March).http://www.nber.org/papers/w13882

Reinhart, Carmen M. and Kenneth S. Rogoff. 2009. This Time Is Different: Eight Centuries of

Financial Folly. Princeton: Princeton University Presss.

Cline, William R. 1995. International Debt Reexamined. Washington: Institute forInternational Economics.

Krugman, Paul. 1994. U.S. Policy on Developing-Country Debt. InAmerican EconomicPolicy in the 1980s, ed. Martin Feldstein. Chicago: Chicago University Press (pages 691-722).

Sachs, Jeffrey D. 1988. International Policy Coordination: The Case of the DevelopingCountry Debt Crisis. InInternational Economic Cooperation, ed. Martin Feldstein.

Chicago: Chicago University Press (pages 233-78).Blustein, Paul. 2003. The Chastening: Inside the Crisis that Rocked the Global Financial

System and Humbled the IMF. See in particular The Committee to Save the World

pages 1-18. New York: Public Affairs.DeLong, J. Bradford, and Barry Eichengreen. 2002. Between Meltdown and Moral Hazard:

The International Monetary and Financial Policies of the Clinton Administration. InAmerican Economic Policy in the 1990s, eds. Jeffrey A. Frankel and Peter R. Orszag.Cambridge: MIT Press (pages 191-254).

Geithner, Timothy. 2007. Reflections on the Asian Financial Crisis. Remarks at the Federal

Reserve Bank of San Francisco, June 20, 2007.http://www.newyorkfed.org/newsevents/speeches/2007/gei070620.html

Ghosh, Atish, Timothy Lane, Marianne Schulze-Ghattas, Ales Bulir, Javier Hamann, and Alex

Mourmouras. 2002. IMF-Supported Programs in Capital Account Crises. Washington:International Monetary Fund.

Glick, Reuven and Michael Hutchinson. 1999. Banking and Currency Crises: How Common Are

Twins? Federal Reserve Bank of San Francisco Pacific Basin Conference.http://www.frbsf.org/economics/conferences/990923/papers/glick_hutchison.pdf


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http://www.nber.org/papers/w13882http://www.newyorkfed.org/newsevents/speeches/2007/gei070620.htmlhttp://www.frbsf.org/economics/conferences/990923/papers/glick_hutchison.pdfhttp://www.nber.org/papers/w13882http://www.newyorkfed.org/newsevents/speeches/2007/gei070620.htmlhttp://www.frbsf.org/economics/conferences/990923/papers/glick_hutchison.pdf


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U.S. Council of Economic Advisors. 1999. Capital Flows in the Global Economy and The

Evolution and Reform of the International Financial System. Economic Report of the

President, Chapters 6-7 (pages 219-303).http://origin.www.gpoaccess.gov/usbudget/fy00/pdf/1999_erp.pdf

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http://origin.www.gpoaccess.gov/usbudget/fy00/pdf/1999_erp.pdfhttp://origin.www.gpoaccess.gov/usbudget/fy00/pdf/1999_erp.pdfhttp://origin.www.gpoaccess.gov/usbudget/fy00/pdf/1999_erp.pdf


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March 10 The Strong-Weak Dollar, Global Adjustment and Recession

Episodes:

7. The Plaza, the Louvre, and Bringing Down the Dollar: 1985-89

8. Global Adjustment and U.S. Recession: 1989-92

Reading:Required:

#

Frankel, Jeffrey A. 1994. The Making of Exchange Rate Policy in the 1980s. InAmericanEconomic Policy in the 1980s, ed. Martin Feldstein. Chicago: Chicago University Press

(pages 293-341).* Krugman, Paul. 1991. Has the Adjustment Process Worked? (pp. 277-93 and 309-14). In C.

Fred Bergsten editor,International Adjustment and Financing: The Lessons of 1985-91.

Washington: Institute for International Economics* Henning, C. Randall. 1994. The Bush Administration. In C. Randall Henning, Currencies

and Politics in the United States, Germany, and Japan. Washington: Institute for

International Economics (pages 290-303).


Other:

Destler, I. M. and C. Randall Henning. 1989. Dollar Politics: Exchange Rate Policymaking in

the United States. Washington: Institute for International Economics.

Fratzscher, Marcel. 2008. How Successful is the G7 in Managing Exchange Rates? European

Central Bank Working Paper 952 (October). http://www.ecb.int/pub/pdf/scpwps/ecbwp952.pdfFunabashi, Yoichi. 1988. Managing the Dollar: From the Plaza to the Louvre. Washington:

Institute for International Economics.

Marris, Stephen. 1985. Deficits and the Dollar: The World Economy at Risk. Washington:Institute for International Economics.

Obstfeld, Maurice. 1996. Effectiveness of Foreign Exchange Intervention, 1985-88. InFunctioning of the International Monetary System, eds. Jacob A. Frenkel and MorrisGoldstein. Washington: International Monetary Fund (pages 743-88).

Volcker, Paul A. 1995. The Quest for Exchange Rate Stability: Realistic or Quxotic. Stamp

Lecture. Senate House. University of London. November 29.

http://www.iie.com/publications/papers/paper.cfm?ResearchID=278* Williamson, John. 1994. Introduction. InEstimating Equilibrium Exchange Rates, ed. John

Williamson. Washington: Institute for International Economics (pages 1-17).

* Black, Stanley. 1994. On the Concept and Usefulness of the Equilibrium Exchange Rate.InEstimating Equilibrium Exchange Rates, ed. John Williamson. Washington: Institute

for International Economics (pages 279-292).

U.S. Council of Economic Advisors. 1992. Recent Developments and Economic OutlookEconomic Report of the President, Chapters 2 (pages 35-80).http://fraser.stlouisfed.org/publications/ERP/issue/1584/download/5988/ERP1992_Chapter2.pdf


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http://www.ecb.int/pub/pdf/scpwps/ecbwp952.pdfhttp://www.iie.com/publications/papers/paper.cfm?ResearchID=278http://fraser.stlouisfed.org/publications/ERP/issue/1584/download/5988/ERP1992_Chapter2.pdfhttp://www.ecb.int/pub/pdf/scpwps/ecbwp952.pdfhttp://www.iie.com/publications/papers/paper.cfm?ResearchID=278http://fraser.stlouisfed.org/publications/ERP/issue/1584/download/5988/ERP1992_Chapter2.pdf


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March 24 Bubbles, Booms and Busts in the 1990s

Episodes:

9. The Japanese Bubble: 1989-20021

10. The U.S. Boom and Bust: 1995-2001

Reading:

Required:#

Ahearne, Alan, Joseph Gagnon, Jane Haltmaier, and Steve Kamin. 2002. Preventing Deflation:

Lessons from the Japanese Experience in the 1990s. International Finance Discussion

Papers 729. Washington, DC: Board of Governors of the Federal Reserve System.

http://www.federalreserve.gov/pubs/ifdp/2002/729/ifdp729.pdfIMF (International Monetary Fund). 1999. Growth Divergences in the United States, Europe,

and Japan: Trend or Cyclical? In World Economic Outlook. October (pages 72-91).

http://www.imf.org/external/pubs/ft/weo/1999/02/1099ch3.pdfReview as appropriate relevant portions of Truman readings from January 27.

Other:

Mikitani, Ryoichi, and Adam S. Posen editors. 2000. Japans Financial Crisis and Its Parallelsto U.S. Experience. Washington: Institute for International Economics.

* Posen, Adam S. 1998. Diagnosis: Macroeconomic Mistake, Not Structural Stagnation. In

Adam Posen. Restoring Japans Economic Growth. Washington: Institute forInternational Economics (pages 13-28).

Hoshi, Takeo, and Anil K. Kashyap. 2004. Japans Financial Crisis and Economic Stagnation.Journal of Economic Perspectives, Winter, pages 3-26.

IMF (International Monetary Fund). 2000. Asset Prices and the Business Cycle. In World

Economic Outlook. May (pages 72-91).

http://www.imf.org/external/pubs/ft/weo/1999/02/1099ch3.pdfIMF (International Monetary Fund). 2003. Japan: 2003 Article IV Consultation.

(September) http://www.imf.org/external/pubs/ft/scr/2003/cr03281.pdfIMF (International Monetary Fund). 2003. Japans Experience with Deflation

and Associated Costs Chapter 3 in Japan: Selected Issues(September). http://www.imf.org/external/pubs/ft/scr/2003/cr03282.pdf

Syed, Murtaza, and Kenneth Kang, and Kiichi Tokuoka . 2009. Lost Decadein Translation: What Japans Crisis Could Portend about Recovery fromthe Great Recession. IMF WP/09/282.http://www.imf.org/external/pubs/ft/wp/2009/wp09282.pdf

IMF (International Monetary Fund). 2002. United States: 2002 Article IVConsultation (August) (See pages 1-11 in particular)http://www.imf.org/external/pubs/ft/scr/2002/cr02166.pdf

1 This should be either the bursting of the bubble (1989 until the early 1990s) or recovery (mid-1990s to early

2000s). It could be two episodes if absolutely necessary. To the extent that presentations will be made on each of the episodes.

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http://www.federalreserve.gov/pubs/ifdp/2002/729/ifdp729.pdfhttp://www.imf.org/external/pubs/ft/weo/1999/02/1099ch3.pdfhttp://www.imf.org/external/pubs/ft/weo/1999/02/1099ch3.pdfhttp://www.imf.org/external/pubs/ft/scr/2003/cr03281.pdfhttp://www.imf.org/external/pubs/ft/scr/2003/cr03282.pdfhttp://www.imf.org/external/pubs/ft/wp/2009/wp09282.pdfhttp://www.imf.org/external/pubs/ft/scr/2002/cr02166.pdfhttp://www.federalreserve.gov/pubs/ifdp/2002/729/ifdp729.pdfhttp://www.imf.org/external/pubs/ft/weo/1999/02/1099ch3.pdfhttp://www.imf.org/external/pubs/ft/weo/1999/02/1099ch3.pdfhttp://www.imf.org/external/pubs/ft/scr/2003/cr03281.pdfhttp://www.imf.org/external/pubs/ft/scr/2003/cr03282.pdfhttp://www.imf.org/external/pubs/ft/wp/2009/wp09282.pdfhttp://www.imf.org/external/pubs/ft/scr/2002/cr02166.pdf


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March 31 Introduction to the Global Financial Crisis of 2007-09

Guest:

Steven R. Weisman, editorial director and public policy fellow at the Peterson Institute for

International Economics and former chief international economics correspondent for the New

York Times.

Reading: +

Required:

Johnson, Simon. 2009. The Quite Coup. Atlantic (May).

http://www.theatlantic.com/doc/200905/imf-advice

*Stiglitz, Joseph E. 2009. The Challenge of Creating Jobs in the Aftermath of the GreatRecession. Testimony before the Joint Economic Committee (December 10).

*Roberts, Russell. 2009. The Challenge of Creating Jobs in the Aftermath of the Great

Recession. Testimony before the Joint Economic Committee (December 10).Truman, Edwin M. 2009. Lessons from the Global Economic and Financial Crisis. Keynote

Address, Seoul, Korea (November 11) (pages 1-3)http://www.iie.com/publications/papers/truman0911.pdf

Other:

Bernanke, Ben. 2010. Monetary Policy and the Housing Bubble. Remarks at the American

Economic Association (January 3).http://www.federalreserve.gov/newsevents/speech/bernanke20100103a.pdf

Krugman, Paul. 2009. The Return of Depression Economics and the Crisis of 2008. See, in

particular, The Taming of the Business Cycle (pages 15-22). W.W. Norton andCompany.

General:Federal Reserve Bank of New Yorks Crisis Timelines

http://www.newyorkfed.org/research/global_economy/Crisis_Timeline.pdfhttp://www.newyorkfed.org/research/global_economy/IRCTimelinePublic.pdf

If you click on the elements in these two timelines you will be linked to the relevant

announcements and press reports.

Commentaries on the crisis can also be found at Vox-EUhttp://www.voxeu.org or at Baseline

Scenario http://baselinescenario.com/.Be careful not to confuse opinion with fact!

The readings for March 31 and April 14, 21, and 28 overlap and are not repeated. I have included them roughly

where they are most relevant, but there are overlaps.

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http://www.theatlantic.com/doc/200905/imf-advicehttp://www.iie.com/publications/papers/truman0911.pdfhttp://www.federalreserve.gov/newsevents/speech/bernanke20100103a.pdfhttp://www.newyorkfed.org/research/global_economy/Crisis_Timeline.pdfhttp://www.newyorkfed.org/research/global_economy/IRCTimelinePublic.pdfhttp://www.voxeu.org/http://www.voxeu.org/http://baselinescenario.com/http://baselinescenario.com/http://www.theatlantic.com/doc/200905/imf-advicehttp://www.iie.com/publications/papers/truman0911.pdfhttp://www.federalreserve.gov/newsevents/speech/bernanke20100103a.pdfhttp://www.newyorkfed.org/research/global_economy/Crisis_Timeline.pdfhttp://www.newyorkfed.org/research/global_economy/IRCTimelinePublic.pdfhttp://www.voxeu.org/http://baselinescenario.com/


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April 7 Exchange Rates and Global Imbalances in the 21st Century

Episodes:

11. Global Imbalances: 2001-2010

12. Exchange Rate Policies: 2002-2010

Reading:+

Required:#

IMF (International Monetary Fund). 2007. Staff Report on the MultilateralConsultation on Global Imbalances with China, the Euro Area, Japan,Saudi Arabia, and the United States (June 29)http://www.imf.org/external/np/pp/2007/eng/062907.pdf

Cline, William R., and John Williamson. 2008. New Estimates of Fundamental EquilibriumExchange Rates. Peterson Institute for International Economics Policy Brief 08-7 (July).http://www.iie.com/publications/pb/pb08-7.pdf

Other:

Statement of G-7 Finance Ministers and Central Bank Governors and Agenda for Growth,

Dubai, September 20, 2003. http://www.g7.utoronto.ca/finance/fm030920.htmStatement of G-7 Finance Ministers and Central Bank Governors and Annex on Global

Imbalances, Washington, April 21, 2006. http://www.g7.utoronto.ca/finance/fm060421.htm

Ahearne, Alan, William R. Cline, Kyung Tae Lee, Yung Chul Park, Jean Pisani-Ferry, and JohnWilliamson. 2007. Global Imbalances: Time for Action, Peterson Institute for

International Economics Policy Brief 07- 4 http://www.iie.com/publications/pb/pb07-4.pdf

Warnock, Francis E. 2006. How Might a Disorderly Resolution of Global Imbalances AffectGlobal Wealth? IMF Working Paper wp/06/170. Washington: International Monetary

Fund. http://www.imf.org/external/pubs/ft/wp/2006/wp06170.pdf

Gruber, Joseph W., and Steven B. Kamin. 2008. Do Differences in Financial DevelopmentExplain the Global Pattern of Current Account Imbalances? International Finance

Discussion Papers 923. Washington, DC: Board of Governors of the Federal ReserveSystem.http://www.federalreserve.gov/pubs/ifdp/2008/923/ifdp923.pdf

Cline, William R. 2005. The United States as a Debtor Nation. Washington: Institute forInternational Economics.

Truman, Edwin M. 2005. Postponing Global Adjustment: An Analysis of Pending

Adjustment of Global Imbalances. Working Paper WP 05-6. Washington: Institute forInternational Economics. http://www.iie.com/publications/wp/wp05-6.pdf

IMF (International Monetary Fund). 2002. How Worrisome are Global Imbalances. InWorld Economic Outlook. September (pages 65-81).http://www.imf.org/external/pubs/ft/weo/2002/02/pdf/chapter2.pdf

IMF (International Monetary Fund). 2005. Global Imbalances: A Saving and Investment

Perspective. In World Economic Outlook. September (pages 91-124).http://www.imf.org/external/pubs/ft/weo/2005/02/pdf/chapter2.pdfTruman, Edwin M. 2009. The International Monetary Fund and Regulatory Challenges. Peterson

Institute for International Economics Working Paper 09-16 (December): pages 7-11 inparticular. http://www.iie.com/publications/wp/wp09-16.pdf

Bergsten, C. Fred, and John Williamson editors. 2004.Dollar Adjustment: How Far? AgainstWhat? Washington: Peterson Institute for International Economics.

See also readings for March 31 and April 14 and 21, and in particular April 28. I have included them roughly where

they are most relevant. To the extent that presentations will be made on each of the episodes.

14
http://www.imf.org/external/np/pp/2007/eng/062907.pdfhttp://www.iie.com/publications/pb/pb08-7.pdfhttp://www.g7.utoronto.ca/finance/fm030920.htmhttp://www.g7.utoronto.ca/finance/fm060421.htmhttp://www.iie.com/publications/pb/pb07-4.pdfhttp://www.imf.org/external/pubs/ft/wp/2006/wp06170.pdfhttp://www.federalreserve.gov/pubs/ifdp/2008/923/ifdp923.pdfhttp://www.federalreserve.gov/pubs/ifdp/2008/923/ifdp923.pdfhttp://www.iie.com/publications/wp/wp05-6.pdfhttp://www.imf.org/external/pubs/ft/weo/2002/02/pdf/chapter2.pdfhttp://www.imf.org/external/pubs/ft/weo/2005/02/pdf/chapter2.pdfhttp://www.iie.com/publications/wp/wp09-16.pdfhttp://www.imf.org/external/np/pp/2007/eng/062907.pdfhttp://www.iie.com/publications/pb/pb08-7.pdfhttp://www.g7.utoronto.ca/finance/fm030920.htmhttp://www.g7.utoronto.ca/finance/fm060421.htmhttp://www.iie.com/publications/pb/pb07-4.pdfhttp://www.imf.org/external/pubs/ft/wp/2006/wp06170.pdfhttp://www.federalreserve.gov/pubs/ifdp/2008/923/ifdp923.pdfhttp://www.iie.com/publications/wp/wp05-6.pdfhttp://www.imf.org/external/pubs/ft/weo/2002/02/pdf/chapter2.pdfhttp://www.imf.org/external/pubs/ft/weo/2005/02/pdf/chapter2.pdfhttp://www.iie.com/publications/wp/wp09-16.pdf


15/23

IMF (International Monetary Fund). 2006. Methodology for CGER Exchange Rate Assessmentshttp://www.imf.org/external/np/pp/eng/2006/110806.pdf

IMF (International Monetary Fund). 2007. Exchange Rates and theAdjustment of External Imbalances. In World Economic Outlook. April(pages 81-120). http://www.imf.org/external/pubs/ft/weo/2007/01/pdf/c3.pdf

Isard, Peter. 2007. Equilibrium Exchange Rates: Assessment Methodologies,IMF Working Paper 07/296

http://www.imf.org/external/pubs/ft/wp/2007/wp07296.pdf*Goldstein, Morris and Nicholas R. Lardy. 2008. Chinas Exchange Rate Policy: An Overview

of Some Key Issues Chapter 1 inDebating Chinas Exchange Rate Policy. Washington:

Peterson Institute for International Economics.

*Goldstein, Morris and Nicholas R. Lardy. 2009. Policy Implications and Options Chapter 3 inThe Future of Chinas Exchange Rate Policy. Washington: Peterson Institute for

International Economics.

*Mussa, Michael. 2008. IMF Surveillance over Chinas Exchange Rate Policy. Chapter 8 inDebating Chinas Exchange Rate Policy. Washington: Peterson Institute for International

Economics.

Cline, William R., and John Williamson. 2009. 2009 Estimates of Fundamental Equilibrium

Exchange Rates. Peterson Institute for International Economics Policy Brief 09-10 (July).http://www.iie.com/publications/pb/pb09-10.pdf

Cline, William R. 2008. Estimating Consistent Fundamental Equilibrium Exchange Rates.Peterson Institute for International Economics Working Paper 08-6 (July)http://www.piie.com/publications/wp/wp08-6.pdf

15
http://www.imf.org/external/np/pp/eng/2006/110806.pdfhttp://www.imf.org/external/pubs/ft/weo/2007/01/pdf/c3.pdfhttp://www.imf.org/external/pubs/ft/wp/2007/wp07296.pdfhttp://www.iie.com/publications/pb/pb09-10.pdfhttp://www.piie.com/publications/wp/wp08-6.pdfhttp://www.imf.org/external/np/pp/eng/2006/110806.pdfhttp://www.imf.org/external/pubs/ft/weo/2007/01/pdf/c3.pdfhttp://www.imf.org/external/pubs/ft/wp/2007/wp07296.pdfhttp://www.iie.com/publications/pb/pb09-10.pdfhttp://www.piie.com/publications/wp/wp08-6.pdf


16/23

April 14 The Global Economic and Financial Crisis of 2007-09: Origins

Episodes:2

13. Macroeconomic Origins

14. Microeconomic Origins

Reading:+

Required:

IMF (International Monetary Fund). 2007. Assessing Global Financial Risks Chapter 1in

Global Financial Stability Report(April) (pages 1-15 in particular).http://www.imf.org/External/Pubs/FT/GFSR/2007/01/pdf/chap1.pdf

IMF (International Monetary Fund). 2007. Global Prospects and Policies Chapter 1 in World

Economic Outlook(October). http://www.imf.org/external/pubs/ft/weo/2007/02/pdf/c1.pdfWashington G-20 Summit Declaration. 2008. Financial Markets and the World Economy

(November 15). http://www.g20.org/Documents/g20_summit_declaration.pdf

Other:

European Central Bank. 2007. Financial Stability Review (December): pages 1-80 in particular.http://www.ecb.int/pub/pdf/other/financialstabilityreview200712en.pdf. See also Lucas

Papademos. 2007. Opening remarks at the press briefing on the occasion of the

publication of the December 2007 ECB Financial Stability Review (December 12)http://www.ecb.int/press/key/date/2007/html/sp071212.en.htmland associated PowerPointhttp://www.ecb.int/press/key/date/2007/html/sp071212.pdf

Carmassi, Jacopo, Daniel Gros, and Stefano Micossi. 2009. The Global Financial Crisis: Causes

and Cures. Journal of Common Market Studies 47, no 5: 977-996http://www3.interscience.wiley.com/cgi-bin/fulltext/122655214/PDFSTART

Obstfeld, Maurice and Kenneth Rogoff. 2009. Global Imbalances and the Financial Crisis:Products of Common Causes. Paper delivered at Federal Reserve Bank of San Francisco

Asia Economic Policy Conference, October 18-20.http://www.frbsf.org/economics/conferences/aepc/2009/09_Obstfeld.pdfIssing Committee. 2008. New Financial Order: Recommendations of the Issing Committee :

White Paper No. 1 (October). http://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_1_Final.pdf

Bank of England. 2008. Financial Stability Report No.24 (October): pages 1-33 in particular.http://www.bankofengland.co.uk/publications/fsr/2008/fsrfull0810.pdf

Visco, Ignazio. 2009. Global Imbalances in the Financial Crisis and the International Monetary

System (December 4). http://www.bis.org/review/r091211d.pdf

Truman, Edwin M. 2009. The Global Financial Crisis: Lessons Learned and Challenges for

Developing Countries. Remarks at the Eighteenth Cycle of Economics Lectures, Bancode Guatemala (June). http://www.iie.com/publications/papers/print.cfm?researchid=1240&doc=pub

Financial Stability Forum. 2008. Report on Enhancing Market and Institutional Resilience(April). http://www.financialstabilityboard.org/publications/r_0804.pdf

2 These presentations and papers should focus on the description of the origins of the crisis, its diagnosis, whether it

was agreed, whether or in what respects it was correct, and how this episode relates to other episodes we have

examined. One student should focus on macroeconomic diagnoses (macroeconomic policies and global imbalances)

and the other should focus on microeconomic diagnoses (the financial system and its supervision and regulation). The readings for March 31 and April 14, 21, and 28 overlap and are not repeated. I have included them roughly

where they are to be most relevant, but there are overlaps.

16
http://www.imf.org/External/Pubs/FT/GFSR/2007/01/pdf/chap1.pdfhttp://www.imf.org/external/pubs/ft/weo/2007/02/pdf/c1.pdfhttp://www.g20.org/Documents/g20_summit_declaration.pdfhttp://www.ecb.int/pub/pdf/other/financialstabilityreview200712en.pdfhttp://www.ecb.int/press/key/date/2007/html/sp071212.en.htmlhttp://www.ecb.int/press/key/date/2007/html/sp071212.pdfhttp://www3.interscience.wiley.com/cgi-bin/fulltext/122655214/PDFSTARThttp://www.frbsf.org/economics/conferences/aepc/2009/09_Obstfeld.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_1_Final.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_1_Final.pdfhttp://www.bankofengland.co.uk/publications/fsr/2008/fsrfull0810.pdfhttp://www.bis.org/review/r091211d.pdfhttp://www.iie.com/publications/papers/print.cfm?researchid=1240&doc=pubhttp://www.financialstabilityboard.org/publications/r_0804.pdfhttp://www.imf.org/External/Pubs/FT/GFSR/2007/01/pdf/chap1.pdfhttp://www.imf.org/external/pubs/ft/weo/2007/02/pdf/c1.pdfhttp://www.g20.org/Documents/g20_summit_declaration.pdfhttp://www.ecb.int/pub/pdf/other/financialstabilityreview200712en.pdfhttp://www.ecb.int/press/key/date/2007/html/sp071212.en.htmlhttp://www.ecb.int/press/key/date/2007/html/sp071212.pdfhttp://www3.interscience.wiley.com/cgi-bin/fulltext/122655214/PDFSTARThttp://www.frbsf.org/economics/conferences/aepc/2009/09_Obstfeld.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_1_Final.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_1_Final.pdfhttp://www.bankofengland.co.uk/publications/fsr/2008/fsrfull0810.pdfhttp://www.bis.org/review/r091211d.pdfhttp://www.iie.com/publications/papers/print.cfm?researchid=1240&doc=pubhttp://www.financialstabilityboard.org/publications/r_0804.pdf


17/23

Gorton, Gary. 2009. Slapped in the Face by the Invisible Hand: Banking and the Financial Panic

of 2007. Paper presented at the Federal Reserve Bank of Atlantas Financial MarketConference (May). http://www.frbatlanta.org/news/CONFEREN/09fmc/gorton.pdf

Senior Supervisors Group. 2008. Observations on Risk Management Practices during the Recent

Market Turbulence (March).http://www.ny.frb.org/newsevents/news/banking/2008/SSG_Risk_Mgt_doc_final.pdf

Senior Supervisors Group. 2009. Risk Management Lessons from the Global Banking Crisis of

2008 (October). http://www.ny.frb.org/newsevents/news/banking/2009/SSG_report.pdf

17
http://www.frbatlanta.org/news/CONFEREN/09fmc/gorton.pdfhttp://www.ny.frb.org/newsevents/news/banking/2008/SSG_Risk_Mgt_doc_final.pdfhttp://www.ny.frb.org/newsevents/news/banking/2009/SSG_report.pdfhttp://www.frbatlanta.org/news/CONFEREN/09fmc/gorton.pdfhttp://www.ny.frb.org/newsevents/news/banking/2008/SSG_Risk_Mgt_doc_final.pdfhttp://www.ny.frb.org/newsevents/news/banking/2009/SSG_report.pdf


18/23

April 21 The Global Economic and Financial Crisis of 2007-09: Responses

Episodes:3

15. Economic Repair

16. Financial System Repair

Reading:+

Required:

IMF Staff Note to G-20 Deputies on Outlook and Actions. 2009. January 31.http://www.imf.org/external/np/g20/pdf/020509.pdf

IMF (International Monetary Fund). 2009. Stabilizing the Global Financial System andMitigating Spillover Risks Chapter 1 in Global Financial Stability Report(April).http://www.imf.org/External/Pubs/FT/GFSR/2009/01/pdf/chap1.pdf

London G-20 Summit Declaration. 2009. The Global Plan for Recovery and Reform (April 2).

[See also the annexes.] http://www.g20.org/Documents/final-communique.pdf

Other:

Kohn, Donald L. 2010. Monetary Policy in the Crisis: Past, Present, and Future (January).http://www.federalreserve.gov/newsevents/speech/kohn20100103a.pdf

Ito, Takatoshi. 2009. Fire, Flood, and Lifeboats: Policy Responses to the Global Crisis of 2007-09. Paper delivered at Federal Reserve Bank of San Francisco Asia Economic Policy

Conference, October 18-20. http://www.frbsf.org/economics/conferences/aepc/2009/09_Ito.pdf

Klyuev, Vladimir, Phil de Imus, and Krishna Srinivasan. 2009. Unconventional Choices forUnconventional Times: Credit and Quantitative Easing in Advanced Economies. IMF

Staff Position Note 09/27 (November 4) http://www.imf.org/external/pubs/ft/spn/2009/spn0927.pdf

Freedman, Charles, Douglas Laxton, and Jaewoo Lee. 2009. The Case for Global Fiscal

Stimulus. IMF Staff Position Note 09/03 (March 6).http://www.imf.org/external/pubs/ft/spn/2009/spn0903.pdf

Financial Stability Forum. 2007. FSF Working Group on Market and Institutional ResiliencePreliminary Report to the G7 Finance Ministers and Central Bank Governors (October15). http://www.fsforum.org/publications/FSFWGPreliminaryreportG715Octt.pdf

Guerra, Ivan, R. Barry Johnston, Andr O. Santos, and Karim Youssef. 2009. Policies to

Address Financial Sector Weakness: Evolution of Financial Markets and InstitutionalIndicators. IMF Staff Position Note 09/24 (October 7).http://www.imf.org/external/pubs/ft/spn/2009/spn0924.pdf

Landier, Augustin and Kenichi Ueda. 2009. The Economics of Bank Restructuring:Understanding the Options. IMF Staff Position Note 09/12 (June 5).http://www.imf.org/external/pubs/ft/spn/2009/spn0912.pdf

Truman, Edwin M. 2008. On What Terms is the IMF Worth Funding. Peterson Institute forInternational Economics Working Paper 08-11 (December).

http://www.iie.com/publications/wp/wp08-11.pdf

3 These presentations and papers should focus on the description of the policy actions in response to the crisis, the

extent and nature of their coordination, whether the actions and coordination contributed to their success or failure,

and how this episode relates to other episodes we have examined. One student should focus on responses using

macroeconomic policies directed at economic growth and the other should focus on responses using policies

designed to repair or support the financial system. The readings for March 31 and April 14, 21, and 28 overlap and are not repeated. I have included them roughly

where they are most relevant, but there are overlaps.

18
http://www.imf.org/external/np/g20/pdf/020509.pdfhttp://www.imf.org/External/Pubs/FT/GFSR/2009/01/pdf/chap1.pdfhttp://www.g20.org/Documents/final-communique.pdfhttp://www.federalreserve.gov/newsevents/speech/kohn20100103a.pdfhttp://www.frbsf.org/economics/conferences/aepc/2009/09_Ito.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0927.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0903.pdfhttp://www.fsforum.org/publications/FSFWGPreliminaryreportG715Octt.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0924.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0912.pdfhttp://www.iie.com/publications/wp/wp08-11.pdfhttp://www.imf.org/external/np/g20/pdf/020509.pdfhttp://www.imf.org/External/Pubs/FT/GFSR/2009/01/pdf/chap1.pdfhttp://www.g20.org/Documents/final-communique.pdfhttp://www.federalreserve.gov/newsevents/speech/kohn20100103a.pdfhttp://www.frbsf.org/economics/conferences/aepc/2009/09_Ito.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0927.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0903.pdfhttp://www.fsforum.org/publications/FSFWGPreliminaryreportG715Octt.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0924.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0912.pdfhttp://www.iie.com/publications/wp/wp08-11.pdf


19/23

Truman, Edwin M. 2009. How the Fund Can Help Save the World Economy. Op-Ed in theFinancial Times (March 5). http://www.iie.com/publications/opeds/print.cfm?researchid=1140&doc=pub

Financial Stability Board. 2009. Press Release on Recommendations and Principles to

Strengthen Financial Systems (April 2) [See links to reports.]http://www.financialstabilityboard.org/press/pr_090402a.pdf

19
http://www.iie.com/publications/opeds/print.cfm?researchid=1140&doc=pubhttp://www.iie.com/publications/opeds/print.cfm?researchid=1140&doc=pubhttp://www.financialstabilityboard.org/press/pr_090402a.pdfhttp://www.iie.com/publications/opeds/print.cfm?researchid=1140&doc=pubhttp://www.iie.com/publications/opeds/print.cfm?researchid=1140&doc=pubhttp://www.financialstabilityboard.org/press/pr_090402a.pdf


20/23

April 28 The Global Economic and Financial Crisis of 2007-09: Lessons

Episodes:4

17. Financial Reform

18. International Monetary Reform

Reading:+

Required:

Financial Stability Board. 2009. Progress since the Pittsburgh Summit in Implementing the G20

Recommendations for Strengthening Financial Stability (November 7).http://www.financialstabilityboard.org/publications/r_091107a.pdf

Mateos y Lago, Isabelle, Rupa Duttagupta, and Rishi Goyal. 2009. The Debate on theInternational Monetary System. IMF Staff Position Note 09/26 (November 11)http://www.imf.org/external/pubs/ft/spn/2009/spn0926.pdf

Other:

Pittsburgh G-20 Summit Statement ,September 25, 2009.http://www.g20.org/Documents/pittsburgh_summit_leaders_statement_250909.pdf

Communiqu of the G-20 Ministers and Governors, November 7, 2009.http://www.g20.org/Documents/2009_communique_standrews.pdf

IMF. 2009. The G-20 Mutual Assessment Process and the Role of the Fund (December).http://www.imf.org/external/np/pp/eng/2009/120209A.pdf

*Helleiner, Eric. 2010.What Role for the New Financial Stability Board? The Politics of

International Standards after the Crisis (January).5

*Hersh, Adam S. 2010. Introduction to the Financial Stability Board and the International

Financial Reform Agenda.6

Johnston, R. Barry, Effie Psalida, Phil de Imus, Jeanne Gobat, Mangal Goswami, Christian

Mulder, and Francisco Vasquez. 2009. Addressing Information Gaps. IMF Staff PositionNote 09/06 (March 26). http://www.imf.org/external/pubs/ft/spn/2009/spn0906.pdf

Carvajal, Ana, Randall Dodd, Michael Moore, Erlend Nier, Ian Tower, and Luisa Zanforlin.2009. The Perimeter of Financial Regulation. IMF Staff Position Note 09/07 (March 26).http://www.imf.org/external/pubs/ft/spn/2009/spn0907.pdf

De Larosiere, Jacques. 2009. Report of the High-Level Group on Financial Supervision in the

EU. http://ec.europa.eu/internal_market/finances/docs/de_larosiere_report_en.pdfPew Financial Reform Task Force. 2009. Principles on Financial Reform. (December)

http://www.pewfr.org/admin/section_introductions/files/FRP-POLICY-STATEMENT-FINAL.pdf

Group of Thirty. 2009. Financial Reform: A Framework for Financial Stability (January).http://www.group30.org/pubs/reformreport.pdf

Brunnermeier, Markus, Andrew Crockett, Charles Goodhart, Avinash D. Persaud, and Hyun

Shin. 2009. The Fundamental Principles of Financial Regulation. Geneva Reports on theWorld Economy.

4 These presentations and papers should focus on lessons to be learned or in the process of being learned, and howthis episode relates to other episodes we have examined, but they should also revisit the issues of the definition of

the problem, the diagnosis, and whether there is a common diagnosis. One student should focus on lessons andefforts to reform of financial systems, national and international. The other student should focus on lessons and

efforts to reform the international monetary system, including the IMF. The readings for March 31 and April 14, 21, and 28 overlap and are not repeated. I have grouped them roughly

where they appear to be most relevant, but there are overlaps.5 This is a draft paper. Please treat accordingly.6 This is a preliminary draft paper. Please treat accordingly. If you have any comments, I have been asked toforward them to the author.

20
http://www.financialstabilityboard.org/publications/r_091107a.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0926.pdfhttp://www.g20.org/Documents/pittsburgh_summit_leaders_statement_250909.pdfhttp://www.g20.org/Documents/2009_communique_standrews.pdfhttp://www.imf.org/external/np/pp/eng/2009/120209A.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0906.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0907.pdfhttp://ec.europa.eu/internal_market/finances/docs/de_larosiere_report_en.pdfhttp://www.pewfr.org/admin/section_introductions/files/FRP-POLICY-STATEMENT-FINAL.pdfhttp://www.group30.org/pubs/reformreport.pdfhttp://www.financialstabilityboard.org/publications/r_091107a.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0926.pdfhttp://www.g20.org/Documents/pittsburgh_summit_leaders_statement_250909.pdfhttp://www.g20.org/Documents/2009_communique_standrews.pdfhttp://www.imf.org/external/np/pp/eng/2009/120209A.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0906.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0907.pdfhttp://ec.europa.eu/internal_market/finances/docs/de_larosiere_report_en.pdfhttp://www.pewfr.org/admin/section_introductions/files/FRP-POLICY-STATEMENT-FINAL.pdfhttp://www.group30.org/pubs/reformreport.pdf


21/23

Financial Services Authority. 2009. The Turner Review: A Regulatory Response to the Global

Banking Crisis (March). http://www.fsa.gov.uk/pubs/other/turner_review.pdfIssing Committee. 2009. New Financial Order: Recommendations of the Issing Committee :

White Paper No. 2 (February). http://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_2_2009_Final.pdf

Blanchard, Olivier and Gian Maria Milesi-Ferretti. 2009. Global Imbalances in Midstream? IMF

Staff Position Note 09/29 (December 22).

http://www.imf.org/external/pubs/ft/spn/2009/spn0929.pdfCrockett, Andrew. 2009. Reforming the Global Financial Architecture. Remarks delivered at

Federal Reserve Bank of San Francisco Asia Economic Policy Conference, October 18-

20. http://www.frbsf.org/economics/conferences/aepc/2009/09_Crockett.pdfEichengreen, Barry. 2009. The Financial Crisis and Global Policy Reforms. Paper delivered at

Federal Reserve Bank of San Francisco Asia Economic Policy Conference, October 18-

20. http://www.frbsf.org/economics/conferences/aepc/2009/09_Eichengreen.pdfBergsten, C. Fred. 2009. The Dollar and the Deficits: How Washington Can Prevent the Next

Crisis.Foreign Affairs (November). http://www.iie.com/publications/papers/print.cfm?researchid=1312&doc=pub

Zhou, Xiaochuan. 2009. Reform of the International Monetary System (March 23).http://www.pbc.gov.cn/english/detail.asp?col=6500&id=178

Williamson, John. 2009. Understanding Special Drawing Rights (SDRs). Peterson Institute forInternational Economics Policy Brief 09-11 (June). http://www.iie.com/publications/pb/pb09-11.pdf

Williamson, John. 2009. Why SDRs Could Rival the Dollar. Peterson Institute for InternationalEconomics Policy Brief 09-20 (September). http://www.iie.com/publications/pb/pb09-20.pdf

Cooper, Richard N. 2009. The Future of the Dollar. Peterson Institute for International

Economics Policy Brief 09-21 (September). http://www.iie.com/publications/pb/pb09-21.pdfUnited Nations. 2009. Report of the [Stiglitz] Commission of Experts of the President of the

United Nations General Assembly on Reforms of the International Monetary and

Financial System (September 21). Chapter 4 on International Institutions (pages 87-108)and Chapter 5 on International Financial Innovations (pages 109-31), including

International Monetary Reform (pages 109-121).http://www.un.org/ga/econcrisissummit/docs/FinalReport_CoE.pdf

Truman, Edwin M. 2009. The International Monetary Fund and Regulatory Challenges. PetersonInstitute for International Economics Working Paper 09-16 (December).http://www.iie.com/publications/wp/wp09-16.pdf

Truman, Edwin M. 2010. The International Monetary System and Global Imbalances. Remarks

delivered at IMF conference on the International Monetary System (January).http://www.iie.com/publications/papers/truman0110.pdf

Truman, Edwin M. 2009. Its Time to Recognize Reserve Currency Realities. Peterson Institutefor International Economics Real Time Economic Issues Watch (July).

http://www.iie.com/realtime/?p=854

McKinsey Global Institute. 2009. Exorbitant Privilege? Implications of Reserve Currencies forCompetitiveness (December).http://www.mckinsey.com/mgi/reports/pdfs/reserve_currencies/reserve_currencies_full_discussion_paper.p

df

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http://www.fsa.gov.uk/pubs/other/turner_review.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_2_2009_Final.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_2_2009_Final.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0929.pdfhttp://www.frbsf.org/economics/conferences/aepc/2009/09_Crockett.pdfhttp://www.frbsf.org/economics/conferences/aepc/2009/09_Eichengreen.pdfhttp://www.iie.com/publications/papers/print.cfm?researchid=1312&doc=pubhttp://www.iie.com/publications/papers/print.cfm?researchid=1312&doc=pubhttp://www.pbc.gov.cn/english/detail.asp?col=6500&id=178http://www.iie.com/publications/pb/pb09-11.pdfhttp://www.iie.com/publications/pb/pb09-11.pdfhttp://www.iie.com/publications/pb/pb09-20.pdfhttp://www.iie.com/publications/pb/pb09-21.pdfhttp://www.un.org/ga/econcrisissummit/docs/FinalReport_CoE.pdfhttp://www.iie.com/publications/wp/wp09-16.pdfhttp://www.iie.com/publications/papers/truman0110.pdfhttp://www.iie.com/realtime/?p=854http://www.mckinsey.com/mgi/reports/pdfs/reserve_currencies/reserve_currencies_full_discussion_paper.pdfhttp://www.mckinsey.com/mgi/reports/pdfs/reserve_currencies/reserve_currencies_full_discussion_paper.pdfhttp://www.fsa.gov.uk/pubs/other/turner_review.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_2_2009_Final.pdfhttp://www.ifk-cfs.de/fileadmin/downloads/publications/white_paper/White_Paper_No_2_2009_Final.pdfhttp://www.imf.org/external/pubs/ft/spn/2009/spn0929.pdfhttp://www.frbsf.org/economics/conferences/aepc/2009/09_Crockett.pdfhttp://www.frbsf.org/economics/conferences/aepc/2009/09_Eichengreen.pdfhttp://www.iie.com/publications/papers/print.cfm?researchid=1312&doc=pubhttp://www.iie.com/publications/papers/print.cfm?researchid=1312&doc=pubhttp://www.pbc.gov.cn/english/detail.asp?col=6500&id=178http://www.iie.com/publications/pb/pb09-11.pdfhttp://www.iie.com/publications/pb/pb09-11.pdfhttp://www.iie.com/publications/pb/pb09-20.pdfhttp://www.iie.com/publications/pb/pb09-21.pdfhttp://www.un.org/ga/econcrisissummit/docs/FinalReport_CoE.pdfhttp://www.iie.com/publications/wp/wp09-16.pdfhttp://www.iie.com/publications/papers/truman0110.pdfhttp://www.iie.com/realtime/?p=854http://www.mckinsey.com/mgi/reports/pdfs/reserve_currencies/reserve_currencies_full_discussion_paper.pdfhttp://www.mckinsey.com/mgi/reports/pdfs/reserve_currencies/reserve_currencies_full_discussion_paper.pdf


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May 5 Economic Policy Coordination: Concluding Discussion

In this final session of our seminar we will focus on what we think we have learned.

I will provide a list of topics for discussion in advance of this session.

Please review your notes from January 27.

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Useful Additional Reference Materials

Bank for International Settlements,Annual Report, 1997-2009 issues available online.

http://www.bis.org/publ/arpdf/ar2006e.htm

Board of Governors of the Federal Reserve System, Monetary Policy Report to Congress and

accompanying testimony is available on line

http://www.federalreserve.gov/monetarypolicy/mpr_default.htm semiannually since July 1996.

First issued in March 1979. Both can be found in theFederal Reserve Bulletin of the

Board of Governors as well as in theAnnual Report of the Board of Governors of the

Federal Reserve System. From May 1977 to March 1979, quarterly testimony can befound in the same sources.

Board of Governors of the Federal Reserve System Transcripts of Meetings of the Federal Open

Market Committee and related documents including Greenbook staff forecasts areavailable online starting in 1964http://www.federalreserve.gov/monetarypolicy/fomc_historical.htm

Treasury and Federal Reserve Foreign Exchange Operations are available four times a year in the

Federal Reserve Bulletin of the Board of Governors or in the Quarterly Review of the

Federal Reserve Bank of New York (first published in the early 1960s) and contain a lot

of useful contemporary information. They available on line starting in 1999http://www.newyorkfed.org/markets/quar_reports.html

IMF (International Monetary Fund). World Economic Outlook(WEO), published twice a year,starting in April 1980. See also IMF,Annual Reportbefore that date or as a supplement.

The IMF also has a very useful WEO databasehttp://www.imf.org/external/pubs/ft/weo/2006/01/data/index.htm.

IMF (International Monetary Fund),International Financial Statistics (a monthly and annual

publication for additional data). The library probably has an electronic subscription.

Financial Stability Board, Documents on Financial System Reform and Stability,

http://www.financialstabilityboard.org/ includes documents of the Financial StabilityForum for three previous years.

Organization for Economic Cooperation and Development (OECD), OECD Economic Outlook.

Published twice a year starting in mid-1960s. Recent Outlooks are available onlinehttp://www.oecd.org/department/0,3355,en_2649_33733_1_1_1_1_1,00.html

University of Toronto G7, G8 and G20 Information Centers. Summit Statements andDocuments and G-7 Finance Ministers and Central Bank Governors Statements and

Documents. Documents related to G20 meetings. http://www.g8.utoronto.ca/summit/index.htm

&http://www.g7.utoronto.ca/finance/index.htm&http://www.g20.utoronto.ca/
http://www.bis.org/publ/arpdf/ar2006e.htmhttp://www.federalreserve.gov/monetarypolicy/mpr_default.htmhttp://www.federalreserve.gov/monetarypolicy/fomc_historical.htmhttp://www.federalreserve.gov/monetarypolicy/fomc_historical.htmhttp://www.newyorkfed.org/markets/quar_reports.htmlhttp://www.imf.org/external/pubs/ft/weo/2006/01/data/index.htmhttp://www.financialstabilityboard.org/http://www.oecd.org/department/0,3355,en_2649_33733_1_1_1_1_1,00.htmlhttp://www.g8.utoronto.ca/summit/index.htmhttp://www.g7.utoronto.ca/finance/index.htmhttp://www.g20.utoronto.ca/http://www.g20.utoronto.ca/http://www.bis.org/publ/arpdf/ar2006e.htmhttp://www.federalreserve.gov/monetarypolicy/mpr_default.htmhttp://www.federalreserve.gov/monetarypolicy/fomc_historical.htmhttp://www.newyorkfed.org/markets/quar_reports.htmlhttp://www.imf.org/external/pubs/ft/weo/2006/01/data/index.htmhttp://www.financialstabilityboard.org/http://www.oecd.org/department/0,3355,en_2649_33733_1_1_1_1_1,00.htmlhttp://www.g8.utoronto.ca/summit/index.htmhttp://www.g7.utoronto.ca/finance/index.htmhttp://www.g20.utoronto.ca/

Amherst++Econ+70+Syllabus+2010

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