Economics 811 Advanced Macroeconomics I

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Oct 28, 2013 (3 years and 5 months ago)

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212
-
654



Professor Soyoung Kim

Spring 20
11



soyoungkim@
snu
.ac.kr







International
Finance/Macroeconomics






Course Syllabus


Grading Scheme:



Problem Sets/Attendance (1
0

%)
: homewor
ks 1
-
3


Presentation (2
0
%):
최근

논문



1
개를

선택하여

15
-
25


정도

발표
.
논문

list


추후에

공지함
.

Final Exam (
70
%)


2010
년도

1
학기에

국제금융론

특수

연구를

수강한

학생이



강의를

수강하는

경우


2010
년도

1
학기때

다루어지지

않은

Part III


Part IV
부분의

강의를

수강하여야

하며

기말고사


Problem Set
에서

해당

부분의

문제를

풀어야하고

간단한

논문을

작성해서

제출해야


.

논문은

2
010
년도

1
학기

국제금융론

특수연구나



강의의

내용과

관련된

주제를

다루고

있어야


. Problem Set/Attendance (5%), Presentation (25%), Final Exam (35%),
논문

(35%)



Reference Books
:


* Obstfeld M. and K. Rogoff, 1996,
Foundations of International Macroeconomics
, MIT Press.


Grossman, G. and
K. Rogoff (eds.), 1996,
Handbook of International Economics III
, North Holland.


Mark, N., 2001,
International Macroeconomics and Finance: Theory and Empirical Methods
, Blackwell
Publishers.


PART I.
INTERNATIONAL TRADE OVER TIME: INTERTEMPORAL MODELS OF
T
HE CURRENT ACCOUNT


1.

Intertemporal Approach to the Current Account


**Obstfeld
-
Rogoff (OR), Chapter 1 (Sections 1, 2, 3), Chapter 2 (Sections 1, 2, 3, 4), Chapter 4
(Sections 4,5)

* Obstfeld, M. and K. Rogoff (1994) "The Intertemporal Approach to the Curren
t Account" NBER
W.P. No. 4893, October, also Chapter 34 of (GR) volume.

Sachs, J. (1982) "The Current Account in the Macroeconomic Adjustment Process",
Scandinavian
Journal of Economics
.

Sachs, J. (1981) "The Current Account and Macroeconomic Adjustment in

the 1970s",
Brookings
Papers on Economic Activity
, Vol.12, 201
-
268.

Frenkel, Jacob A. and Assaf Razin, 1986, Fiscal Policies in the World Economy, Journal of Political
Economy 94 (June) 564
-
594.

Dornbusch, Rudiger, 1983, Real Interest Rates, Home Goods an
d Optimal External Borrowing, Journal
of Political Economy 91, 141
-
153.

Burda, M.C. and S. Gerlach (1992) “Intertmeporal Prices and the U.S. Trade Balance”
American
Economic Review 82
, December, 1234
-
53.


2

Backus, D. P. Kehoe and F. Kydland (1992) "Relative

Price Movements in Dynamic General
Equilibrium Models of International Trade", Chapter 3 of (VP) volume.

Backus, D. P. Kehoe and F. Kydland (1994) "Dynamics of the Trade Balance and the Terms of
Trade: The S
-
Curve",
American Economic Review
.


2.

Empirical Ev
idence On Intertemporal Models


A. The Feldstein Horioka Puzzle, Saving and Investment Puzzle

** Obstfeld, M. and K. Rogoff (1994) "The Intertemporal Approach to the Current Account" NBER
W.P. No. 4893, October, also Chapter 34 of (GR) volume.

** Obstfeld,

M. (1994) "International Capital Mobility in the 1990s", NBER Working Paper No. 4534,
February; also in P. Kenen (ed.)
Understanding Interdependence: The Macroeconomics of the Open
Economy
, Princeton University Press, 1995.

Feldstein, M. and C. Horioka (1
980), "Domestic Saving and International Capital Flows",
Economic
Journal
.

Nason, James M. and John H. Rogers (2002) “Investment and the Current Account in the Short Run
and the Long Run,” Journal of Money, Credit, and Banking 34, 967
-
86.

* Baxter, M. and
M. Crucini (1993) "Explaining Saving
-
Investment Correlations", December,
American
Economic Review
.

Allan W. Gregory and Allen C. Head (1999) “Common and country
-
specific fluctuations in productivity,
investment, and the current account,”
Journal of Monetar
y Economics

(44)3, 423
-
451

* Glick, Reuven and Kenneth Rogoff, 1995, Global Versus Country
-
Sepcific Productivity Shocks and
Current Account, Journal of Monetary Economics 35(1) February, 159
-
192.

Tesar, Linda, 1991, Savings, Investment and International Ca
pital Flows, Journal of International
Economics 31 August 55
-
78.

Finn, Mary, 1990, Saving and Investment Dynamics in a Small Open Economy, Journal of International
Economics 29 (1
-
2), August, 1
-
21.

Hoffmann, M. (2001) “The Relative Dynamics of Investment a
nd the Current Account in the G
-
7
Economies,”
Economic Journal

111 (May), 148
-
163.


B. Other Tests of Intertemporal Models

** Obstfeld and Rogoff (OR) Chapters 1
-
3.

** Obstfeld, M. and K. Rogoff (1994) "The Intertemporal Approach to the Current Account" NB
ER
W.P. No. 4893, October, also Chapter 34 of (GR) volume.

* Sheffrin S.M. and W.T. Woo (1990) “Present Value Tests of an Intertemporal Model of the Current
Account”
Journal of International Economics 29
, 237
-
253.

Ahmed, S. (1986), "Temporary and Permanent

Government Spending in an Open Economy",
Journal of
Monetary Economics
, 17, 197
-
224.

__________ (1987) "Government Spending, The Trade Balance and the Terms of Trade in British
History",
Journal of Monetary Economics
, 20, 195
-
220.

P.R. Bergin and W.M. She
ffrin (2000) “Interest Rates, Exchang Rates and Present Value Models of
the Current Account”
Economic Journal

110 (April), 535
-
558.

Ghosh A.R. (1995) “International Capital Mobility Amongst the Major Industrialized Countries: Too
Little or Too Much?”
The E
conomic Journal 105
, January 107
-
128.

Campbell, J.Y. (1987) “Does Saving Anticipate Declining Labor Income? An Alternative Test of the
Permanent Income Hypothesis”
Econometrica
, November 1987.

Clarida, R.H. (1996) “Consumption, Import Prices, and the Deman
d for Imported Consumer Durables:
A Structural Econmetric Investigation”
Review of Economics and Stati
stics 78, August 1996, 369
-
74.

Gruber, Joseph W. (2004) “A Present Value Test of Habits and the Current Account,” Journal of
Monetary Economics 51, 1497
-
1
507.


3

Naso
n, James M. and John H. Rogers

(
2006
)

“The Present Value Model of the Current Account Has
Been Rejected: Round up the Usual Suspects?” Journal of International Economics

68, 159
-
187.

Engel, Charles and John Rogers

(
2006
)

The U.S. Current Account D
eficit and the Expected Share of
World Output, Journal of Monetary Economics 52, 1063
-
1093.

Ventura, Jaume (2002) “Towards a Theory of Current Accounts” NBER Working Paper No. 9163.

Ventura, Jaume, Art Kraay (2000) “Current Accounts in Debtor and Creditor
Countries,” Quarterly
Journal of Economics.

Ventura, Jaume, 2001, A Portfolio View of the U.S. Current Account Deficit, Brookings Papers on
Economic Activity, July.

Ventura, Jaume, Art Kraay (2003), “Current Account in the Long and Short Run” 2002 NBER
Mac
roeconomics Annual, July.

Campa, J.M. and A. Gavilan (2006),

Current Accounts in the Euro Area: An Intertemporal
Approach,


Working Paper.


PART II.
INTERNATIONAL FINANCIAL MARKET, INTERNATIONAL BUSINESS
CYCLES, AND INTERNATIONAL RISK SHARING


3. Internat
ional Trade Across States of Nature: Trade in Risky Assets and Portfolio Choice in
Open Economies

4. International Portfolio Diversification Puzzle

5. Consumption Correlation Puzzle and International Business Cycles

6. Channels of International Risk Sharin
g, Welfare Gains of International Risk Sharing
,
Finacial Globalization and Integration


PART III. INTERNATIONAL MACRO AND MONETARY ECONOMICS

7
.
Exchange Rate Economics

8.
New Open Economy Macroeconomics

9
. Empirical Evidence on International Macro/Monetary

and Exchange Rate

Models



PART IV.
EXCHANGE RATE REGIMES

10
. Currency Crisis and Speculative Attacks in the Fixed Exchange Rate Regime

1
1
. International Monetary Regime: Fixed vs. Flexible Exchange Rate Regime

1
2
. Foreign Exchange Rate Intervention, Ca
pital Controls
, and International Financial
Architecture



*Some
c
hapters in Part I

and II may not be covered