Economics W4505
International Macroeconomics
Spring 2009
Department of Economics
Columbia University

Professor Martin Uribe
E-mail: martin.uribe@columbia.edu
Office Hours: Mondays and Wednesdays 4-5pm, IAB 1109A

Professor Stephanie Schmitt-Grohe (Second half of the semester)
E-mail: stephanie.schmittgrohe@columbia.edu
Office Hours: Mondays and Wednesdays 4-5pm, IAB 1109B

TA Rudy Loo-Kung
E-mail: rjl2119@columbia.edu
Office Hours:  Mondays and Wednesdays 10-11am at 1006A IAB.

TA Sebastian Rondeau
E-mail: sr2548@columbia.edu
Office Hours:  Tuesdays and Thursdays 10-11am at 1006A IAB.

Meetings: Mondays and Wednesdays 2:40pm-3:55pm at 209 Havemeyer Hall.

TA Sessions: Fridays 2:40-3:55pm in 203 Math.

Midterm Exam: Wednesday, March 11, in class, usual time and location.

Final Exam: Wednesday, May 13, 1:10-4:00pm, 209 Havemeyer Hall, cumulative.

Course Description: Econ W4505 is a field course in International Macroeconomics. It develops a theoretical framework for the analysis of the determinants of international capital movements, trade imbalances, and nominal and real exchange rates. The theoretical framework is then used as the basis for the discussion of policy issues such as the emergence of the U.S. as a foreign debtor in the 1980s, the developing country debt crisis, exchange-rate-based inflation stabilization, debt default, and balance-of-payment crises.

Syllabus

Lecture Notes

Handouts
Handout 1
Handout 2 The Great Moderation and the Great External Imbalance.
Handout 3 Country-Premium Shocks and Current-Account Reversals.
Handout 4 The Twin Deficits
Handout 5 Capital Market Integration
Handout 6: Purchasing Power Parity Download accompanying article by Taylor and Taylor.
Handout 7: Understanding Long-Run Movements in Real Exchange Rates
Handout 8 PPP Exchange Rates and Standard of Living Comparisons
Handout 9: Sudden Stops and Real Exchange Rates
Handout 10: Debt Restructuring
Handout 11: The Mexican BOP Crisis of December 1994

Homeworks
Problem Set 1 (due 2/2) Download accompanying Economist article 1 and article 2
Problem Set 2 (NEW DUE DATE 2/11).
Problem Set 3 (due Feb/23)
Problem Set 4 (due 3/4)
Problem Set 5 (due 4/8) Download data (in xls format) and article
Problem Set 6 (due 4/15)
Problem Set 7 (due 4/22).
Problem Set 8 (due 5/4).