Posts from — April 2007

Slides here

Lecture notes  here

All apologies for the confusion on the marking for the course, it was my mistake in the last lecture.

Thanks to Jacqueline for bringing this up.

As per the course outline, students will be assessed based on their performance in the final exam, their presentations, and their blogs. The marks will be made up of

50% Exam

30% Presentation

20% Blog Content & Problems

Module:  EC6012

Module Title: International Monetary Economics

Date: 25-MAY-07

Day: FRIDAY

Building: MAIN BUILDING

Location: C1058/59/60

Time: 12:30

Make sure to bring a calculator as well as your usual exam materials.

Lecture Notes here

Slides here

Programs here

Presentations will be held next Tuesday, in S110 at the following times:

12–1 Groups 2 and 3

5–6.30 Groups 1, 4, and 5.

Powerpoint presentations must be emailed to me by next Tuesday at 10am. We’ll be using my laptop and projector. Handouts, etc should also be emailed, and put on your blogs.

Anybody who can’t make these two times, email me.

Handout is here

Slides are here

Programs are here

For next time: Read Lachmann, The Role of Expectations in Economics as a Social Science. (Jstor Link, you have to be in college to open and download it).

Check back here for presentation times.

Because of room availability and your other project commitments, we will not be holding presentations next week.

All presentations will take place in week 11.

I’ll have more details on rooms, etc, in the lecture on Monday.

Prof. Donovan will give an hour’s lecture on April 16. Slides for the talk are here (71kb). Right click the link to download.

Summary

This paper examines the impact on labour markets in advanced countries (ACs) of the integration of the two giant fast-growing countries, China and India, with the liberalised global economy.  The integration is taking place under “current globalisation,”  which consists of free trade, free capital movements and domestic labour market flexibility (instead of free international movement of labour).  The first part reviews economic theory as well as several generations of empirical work on the effects of the fast expansion of exports from developing countries (DCs) on AC labour markets.  Taking into account the positive, the negative, the direct and the indirect effects, the most up-to-date empirical research suggests that globalisation has a small overall effect on output and employment in the US, that is just as likely to be favourable as being unfavourable, depending on the time period and the countries considered.

The paper highlights the pioneering contribution of Freeman (2005), which suggests that even if trade with the South has not previously disadvantaged North workers, the doubling of the global labour force with India and China’s recent integration with the international economy may have profoundly unfavourable repercussions for AC workers.  Two major points of constructive criticism of the Freeman thesis have been emphasised here:  (a) the lack of analysis of the relevant demand side variables and (b) inadequate recognition of the inherent economic strength and dynamism of the US economy and its innovative large corporations.  These should enable the U.S to maintain its technological leadership.

In relation to policy, the underlying question examined here is whether India and China’s industrial revolutions, which are a social imperative for these countries, can be sustained and made compatible with full employment and rising real wages for workers in the North.  It is concluded that current globalisation cannot meet these twin objectives and that coordination and cooperation between nation states under alternative globalisation are much the better way, if not the only way of realising these goals.  The reasons why this should be so are explained in the last part of the paper.

[Download this version of the paper (912kb)]

Assignment. Please write a 600/700 word chapter summary of chapter 4: Government Money with Portfolio Choice, by next Tuesday, and post the summaries on your blogs.

Study guide. The following from Godley/Lavoie is examinable: Chapters 1, 2, 3, 4, 6, and lecture notes/exercises.

Presentations will begin in Week 10 in S110, time to be announced. Check back here for details. I’ll know what time in the next few days. I’ll randomnly assign the groups to weeks 10 and 11.

Apologies for the confusion.