|Title||WORLD ECONOMY [ Syllabus ]
The objective of this course is, first, to help students gain a better understanding of the nature of economic crises that had occurred in the low-income developing countries and emerging market economies from the 20th century to the early 21st century. Those economic crises are decomposed into the following two types: one is the “Current Account Crisis” that would generally take place in low-income developing countries and the other is the “Capital Account Crisis” that had taken place in emerging market economies in the past decade—particularly in East Asia (e.g., Thailand, Indonesia and Korea). The crisis that had happened in other emerging market economies—such as Russia, Brazil, Turkey, and Argentina—could be categorized as the ones that shared the features of both the Current and Capital Account Crises (so-called “In-Between Crisis”). Also, the course will discuss about the post-crisis economic conditions and recent financial market moves (i.e. yen’s carry trade, August 2007 financial turbulence, inflows of capital to emerging market economies).
Second, the course will also cover macroeconomic policy prescriptions applicable to the Current Account Crisis and Capital Account Crisis, as well as relevant policy issues that have been intensively discussed in the international community (such as IMF policy and its conditionality, sequence of liberalization, proper exchange rate regimes).
Third, the recent initiatives toward economic integration in East Asia will be covered. Particularly, the regional swap arrangements and bond market development initiatives will be discussed in detail. Also, the East Asian visions toward common exchange rate arrangements will be pointed out.
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|Lecture Video & Materials|
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|#02||2008/10/02 Overview of Japanese Post-War Economic Reconstruction Period (1)|
The lecture will breifly the post-economic reconstruction era (from
the occupation by US-led SCAP in 1945 until Nixson Shock of 1971)
and economic policy responses. It will also look at the balance of
payments, capital account versus current account liberalization
issues, fixed versus flexible exchange rate policy, and potential
versus actual GDP growth
|#03||2008/10/09 Overview of Japanese Post-War Economic Reconstruction Period (2)|
|#04||2008/10/16 Overview of Japanese Post-War Economic Reconstruction Period (3)|
The lecture will look at the process of Japan’s trade
liberalization from the 1960s, capital account liberalization in
the 1970s-1980s, and financial sector liberalization in the 1980s.
It will also focus on a shift in production location by Japanese
manufacturing sector to US and East Asia and how the linkages with
East Asia has been developed. Recent moves toward forming the Free
Trade Arragements (FTA) and/or Economic Partnership Arragements
(EPA) are also discussed.
|#05||2008/10/23 Growing Economic Linkages between Japan, China and Asia -Challenges for EU and Japan-|
|#06||2008/10/30 Promoting the International Financial Center in Japan and Asia|
The lecture will look at Japan’s capital and financial markets as
well as the government initiatives to develop the international
financial center in Japan. The comparision with US, UK and a few
East Asian countries/regions will be made. What are discussed in
East Asia regarding on the International Financial Centers currently
will also be explained.
|#07||2008/11/27 Financial and Capital Market Issues -Japan and China-|
|#08||2008/12/11 Reviewing the East Asian Crisis of 1997-98 and Its Differences from the Conventional Crisis|
|#09||2008/12/13 Students Presentation|
This section will review the process and causes of the East Asian
Crisis of 1997-98 and compare with the conventional crisis that
usually happen in low-income developing countries.
|#10||2008/12/18 Features of the Current Account Crisis|
This section will look at the Asian Monetary Fund (AMF) proposal
initiated by Japan in 1997 amid the crisis in Thailand, and the
following New Miyazawa Initiative. It will also highlight the Swap
Arrangment that had been realized since 2000 among the ASEAN plus
Three (Japan, China, Korea).
|#11||2008/12/20 Features of a Capital Account Crisis|
This section will focus on the Asian Bond Market Initiative (ABMI)
and the Asian Bond Fund (ABF) and background issues.
|#12||2009/01/08 Policy Response to the East Asian Crisis: Exchange Rate Policy Coordination|
This session will discuss about the impossibility trinity,
appropriate exchange rate policy, and regional exchange rate policy.
|#13||2009/01/15 Final Examination |