INTERNATIONAL MONETARY ECONOMICS
SIPA U6018
Professor Richard H. Clarida
rhc2@columbia.edu
826 International Affairs Building
(212) 854-3676
The required textbook is (KO) P. Krugman and M. Obstfeld, International Economics, Addison Wesley Longman .
The requirements for the course are two hourly exams.
I. Overview, the Foreign Exchange Market, and the Balance of Payments.
KO, Chapters 12 & 13
Triennial Central Bank Survey, BIS, March 2005. Statistical Annex Tables
Clarida, R., “The Clarida View”, The International Economy, January 2003
IMF World Economic Outlook, September 2004, Chapters 1, 2
IMF World Economic Outlook, April 2006, Chapters 1, 2
JP Morgan, “Perspectives on the US Current Account Deficit,” December 2003
Wall Street Journal "Is Your Foreign Fund Hedged or Unhedged?", November 19.
Additional:
Example of the Uncovered Interest Parity (UIP).
Miscellaneous Graphs (Global Indicators, World Economic Projections, Developed and EM Financial Conditions, Financial Markets, Capital Flows, Global Inflation).
“Exchange-Rate Policy Gains Currency as an Urgent Global Issue” & “Why Yuan Revaluation May Not Be a Cure-All” (WSJ, February 1st).
II. Exchange Rates and Prices in the Long Run
KO, Chapters 14 & 15.
Clarida, R., “G3 Exchange Rate Relationships,” NBER No. 7434, December, 1999
Economist, “Survey of Global Finance”, May 2003
III. Exchange Rates and Output in the Short Run
KO, Chapter 16
Clarida, R., “America’s Deficit, the World’s Problem,” The Financial Times, October 22, 2002
Clarida, R. and J. Gali, “Sources of Real Exchange Rate Fluctuations,” Carnegie-Rochester
Conference on Public Policy, 1994
Clarida, R., “Stability and Confidence,” Wall Street Journal, May 27, 2003
JP Morgan, “The Dubai Communique and the Challenge of Unequal Growth,” September 2003
IV. Fixed Exchange Rates, Bretton Woods, the EMS, and EMU
KO, Chapters 17 & 20.
Obstfeld, M., and K. Rogoff, “The Mirage of Fixed Exchange Rates,” Journal of Economic
Perspectives, Fall, 1995
Clarida, R., and Gali, J., and M. Gertler, “Monetary Policy Rules in Practice,” European Economic
Review, 1998
V. International Capital Mobility
KO, Chapter 21
Greenspan, A., “International Payments Imbalances,” November 2003 .
Greenspan, A., “International Payments Imbalances,” November 2004 .
Frankel, J., “No Single Currency Regime is Right for All Countries or at All Times,” NBER
Working Paper No. 7338, September 1999
Mishkin, F., “Understanding Financial Crises: A Developing Country Perspective,” World Bank Conference on Development
Economics, 1996, NBER No. 5600
VI. Past Exams
VII. Articles
"Our Post-Bubble World," WSJ, April 11, 2005
"America's deficits are more than just China's problem," FT, April 20, 2005
