Fall 2011
Announcements:
(Sept. 8) The first homework was posted. On next Friday's exercise session, we will talk about it.
(Sept. 20) The second homework was posted. We will discuss it on Friday.
(Sept. 22) Homework #3 was just posted.
(Sept. 28) Should you need more practice questions, you can find past exams here.
(Sept. 30) Answers to HW3 was just posted. Note that there were a couple of mistaken calculations made during the
exercise lecture, and they were corrected and highlighted in red in the answer key. Thank those who pointed it out.
(Oct. 2) Homework #4 was just posted. This would be our last HW.
Lecture Notes Update:
Lecture notes 1 Lecture notes 2 Lecture notes 3
Lecture notes 4 Lecture notes 5 Lecture notes 6
Lecture notes 7 Lecture notes 8 Lecture notes 9
Lecture notes 10 Lecture notes 11 Lecture notes 12
Other Notes and Comments:
Homework Assignments:
Homework Answers:
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Sept. 6, 2011 Introduction and Overview (L1)
(wk36) Required reading:
> Krugman & Obstfeld (KS) Chapter 1 & 2
Other links:
> Larry Summers interview - Have some historical sense of our times
Sept. 8, 2011 Understanding Copmarative Advantage (L2)
(wk36) Required readings:
> KS Chapter 3: Ricardian Model
> Matthew Slaughter, "What is an 'American' Car?", Wall Street Journal, May 7, 2009
Sept. 14, 2011 Trade and Income Inequality (L3)
(wk37) Required readings:
> KS Chapter 4: Heckscher-Ohlin Model (or Chapter 4 & 5 in 9th ed.)
> Heather Wilhelm, "How China Helps America's Poor", The American, Sept. 12, 2008
Sept. 15, 2011 Standard Trade Model (L4)
(wk37) Required readings:
> KS Chapter 5: Standard Trade Model (for 9th ed. read p141-153)
> "Outsourcing 101", Wall Street Journal, May 27, 2004.
Sept. 20, 2011 Trade Model with Imperfect Competition (L5)
(wk38) Required readings:
> KS Chapter 6: Economies of Scale, Imperfect Competition and International Trade
(for 9th edition, read p167-175, and p.185-201)
Optional reading :
> Paul Krugman's contribution to the trade theory
Sept. 22, 2011 Balance of Payments and Introduction to FX Market (L6)
(wk38) Required readings:
> KS Chapter 12 on NIA and BOP, and Chapter 13 on ER and FX Market
(or Chapter 13 &14 in 9th edition)
> Chad Bown and Rachel McCulloch, "Q&A on the Trade Deficit ", The American, Jan. 31, 2007.
Sept. 27, 2011 Exchange Rate Determination, Part 1 (L7)
(wk39) Required readings:
> KS Chapter 14 (starting from p360, for 9th ed. read Chapters 15 from p.393).
> "Trouble in Paradise", Wall Street Journal, Aug. 20, 2011.
Optional reading :
> "Black Wednesday 1992" - How George Soros successfully attacked British Pound.
Sept. 29, 2011 Exchange Rate Determination, Part 2 (L8)
(wk39) Required readings:
> KS Chapter 15, p.382-408 (for 9th ed. read Chapter 16, p.414 - 439).
> Link: GapMinder and the dynamics of Wage and Labor Productivity
Oct. 4, 2011 Exchange Rate and Macro Policies (L9)
(wk40) Required readings:
>KS Chapter 16, up to p.446 (or Chapter 17, up to p.476 in 9th ed.)
Oct. 6, 2011 Exchange Rate Regimes (L10)
(wk40) Required readings:
> KS Chapter 17 (or Chapter 18 in 9th ed.)
> "Currency Union Teetering, 'Mr. Euro' Is Forced to Act", Wall Street Journal, Sept. 27, 2010.
Professor Pascalis Raimondos-Moeller will take over the last two lectures.
Oct. 10, 2011 Basic Trade Policy Tools (L11)
(wk41) Required readings:
> KS Chapter 8 (or Chapter 9 in 9th ed.)
Oct. 11 , 2011 International Trade Policies (L12)
(wk41) Required readings:
> KS Chapter 9 & 10 (or Chapter 10 & 11 in 9th ed.)
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