Credit

3.00   (L-T-P:   3-0-0)

Department / Center / School / Unit

Economics

Course Objectives

This course deals with international trade and finance, covering both the theoretical models and policy experiences. The course will help students understand questions such as how and why countries trade with each other and on how the globalization of finance poses challenges to macroeconomic policymaking. It will also cover historical and contemporary issues in in-ternational economics.

Course Contents

This course discusses the various theories on trade, including the Ricardian and Heckscher-Ohlin models. It deals with instruments of trade policies, and also the political economy issues such as trade agreements under the WTO. It examines how international trade affect developing countries, with a particular emphasis on the Indian case. Further, the course will trace the emergence of the international monetary system, including the international gold standard and the Bretton Woods system. The ascent of global finance and its implications for macroeconomic policymaking will be covered in this course. Theories on finance, financial regulation and financial crises will also be discussed in this course.

Suggested References

Krugman, P. and Obstfeld, M., International Economics: Theory and Policy, 6th Edition, Addison-Wesley, 2003.
Obstfeld, M. and Rogoff, K., Foundations of International Macroeconomics, The MIT Press, 1996.
Feenstra, R., and Taylor, A., International Trade, Worth Publishers, 2010.
Eichengreen, B., Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International, 2011.
Eichengreen, B., Globalizing Capital: A History of the International Monetary System, Second Edition, Princeton University Press, 2008.
Feenstra, R., Advanced International Trade: Theory and Evidence, Princeton University Press, 2003.
Caves, R., Frankel, J., and Jones, R., World Trade and Payments: An Introduction, Pearson Addison Wesley, 2006.
Minsky, H., John Maynard Keynes, Columbia University Press, 1975.
Kindleberger, C., and Aliber,R., Manias, Panics, and Crises: A History of Financial Crises, 5th Edition, John Wiley and Sons, 2005.
Apart from textbooks, resources from academic journals and magazine papers will be used for this course.