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Topics in International Economics Seminar

Topics in International Economics Seminar. Universidad de Navarra April 3, 2008. Agenda Today. Topics in International Economics: A Bird’s Eye View What are you required to do Groups. Topics in International Economics. Monetary Policy Strategies for Open Economies.

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Topics in International Economics Seminar

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  1. Topics in International Economics Seminar Universidad de Navarra April 3, 2008

  2. Agenda Today • Topics in International Economics: A Bird’s Eye View • What are you required to do • Groups

  3. Topics in International Economics • Monetary Policy Strategies for Open Economies

  4. Topics in International Economics • Monetary Policy Strategies for Open Economies • Monetary Policy Key to Fine-Tune any Economy

  5. Topics in International Economics • Monetary Policy Strategies for Open Economies • Monetary Policy Key to Fine-Tune any Economy • Monetary Policy in an Open Economy brings up additional and important dimensions with respect to Closed Economies

  6. Topics in International Economics • Monetary Policy Strategies for Open Economies • Monetary Policy Key to Fine-Tune any Economy • Monetary Policy in an Open Economy brings up additional and important dimensions with respect to Closed Economies • Exchange Rate Key variable in these economies

  7. Topics in International Economics • Monetary Policy Strategies for Open Economies • Monetary Policy Key to Fine-Tune any Economy • Monetary Policy in an Open Economy brings up additional and important dimensions with respect to Closed Economies • Exchange Rate Key variable in these economies • Why so many small and emerging open economies fix their exchange rate?

  8. Topics in International Economics • Monetary Policy Strategies for Open Economies • Monetary Policy Key to Fine-Tune any Economy • Monetary Policy in an Open Economy brings up additional and important dimensions with respect to Closed Economies • Exchange Rate Key variable in these economies • Why so many small and emerging open economies fix their exchange rate? • Is inflation targeting appropriate for these economies?

  9. Topics in International Economics • The future of the European Monetary Union (EMU)

  10. Topics in International Economics • The future of the European Monetary Union (EMU) • EMU: Amazing story… but real

  11. Topics in International Economics • The future of the European Monetary Union (EMU) • EMU: Amazing story… but real • Monetary Policy in the EMU context not an easy task!

  12. Topics in International Economics • The future of the European Monetary Union (EMU) • EMU: Amazing story… but real • Monetary Policy in the EMU context not an easy task! • Will the business cycle be ever synchronized among different countries such as Finland and Spain?

  13. Topics in International Economics • The future of the European Monetary Union (EMU) • EMU: Amazing story… but real • Monetary Policy in the EMU context not an easy task! • Will the business cycle be ever synchronized among different countries such as Finland and Spain? • Will countries be tempted to leave the euro?

  14. Topics in International Economics • The future of the European Monetary Union (EMU) • EMU: Amazing story… but real • Monetary Policy in the EMU context not an easy task! • Will the business cycle be ever synchronized among different countries such as Finland and Spain? • Will countries be tempted to leave the euro? • Will the euro become more important than the dollar in the foreign exchange markets?

  15. Topics in International Economics • Emerging Market Economy Dynamics

  16. Topics in International Economics • Emerging Market Economy Dynamics • A fact: Up to now, most of the world economic growth has been concentrated in three areas: Western Europe, North America and Japan (less than 20% of the world population)

  17. Topics in International Economics • Emerging Market Economy Dynamics • A fact: Up to now, most of the world economic growth has been concentrated in three areas: Western Europe, North America and Japan (less than 25% of the world population) • India and China’s growth: How will affect the distribution of wealth across countries and across individuals?

  18. Topics in International Economics • Emerging Market Economy Dynamics • A fact: Up to now, most of the world economic growth has been concentrated in three areas: Western Europe, North America and Japan (less than 25% of the world population) • India and China’s growth: How will affect the distribution of wealth across countries and across individuals? • Is their growth sustainable? Will they ever converge to standard free-market economies?

  19. Topics in International Economics • Emerging Market Economy Dynamics • A fact: Up to now, most of the world economic growth has been concentrated in three areas: Western Europe, North America and Japan (less than 25% of the world population) • India and China’s growth: How will affect the distribution of wealth across countries and across individuals? • Is their growth sustainable? Will they ever converge to standard free-market economies? • What are their challenges ahead?

  20. Topics in International Economics • Capital Flows and Economic Growth

  21. Topics in International Economics • Capital Flows and Economic Growth • Big question: Are capital flows good for the receiving country? And for the investor country?

  22. Topics in International Economics • Capital Flows and Economic Growth • Big question: Are capital flows good for the receiving country? And for the investor country? • What kinds of flows are good? Short-run v/s Long-run. Capital flows/ Portfolio Flows v/s FDI

  23. Topics in International Economics • Capital Flows and Economic Growth • Big question: Are capital flows good for the receiving country? And for the investor country? • What kinds of flows are good? Short-run v/s Long-run capital flows/ Portfolio Flows v/s FDI • How should a developing country open their capital account? What should the timing be?

  24. Topics in International Economics • Capital Flows and Economic Growth • Big question: Are capital flows good for the receiving country? And for the investor country? • What kinds of flows are good? Short-run v/s Long-run capital flows/ Portfolio Flows v/s FDI • How should a developing country open their capital account? What should the timing be? • Capital controls: Theory and evidence

  25. Topics in International Economics • Capital Flows and Economic Growth • Big question: Are capital flows good for the receiving country? And for the investor country? • What kinds of flows are good? Short-run v/s Long-run capital flows/ Portfolio Flows v/s FDI • How should a developing country open their capital account? What should the timing be? • Capital controls: Theory and evidence • Positive Spillover Effects of Capital Flows for the receiving country

  26. Topics in International Economics • Global Imbalances

  27. Topics in International Economics • Global Imbalances • Are Large and Lasting Current Account Deficits Sustainable?

  28. Topics in International Economics • Global Imbalances • Are Large and Lasting Current Account Deficits Sustainable? • The US Current Account Deficit: Causes and Consequences

  29. Topics in International Economics • Global Imbalances • Are Large and Lasting Current Account Deficits Sustainable? • The US Current Account Deficit: Causes and Consequences • The adjustment through the exchange rate. Was the depreciation of the dollar expected?

  30. Topics in International Economics • Global Imbalances • Are Large and Lasting Current Account Deficits Sustainable? • The US Current Account Deficit: Causes and Consequences • The adjustment through the exchange rate. Was the depreciation of the dollar expected? • Do Current Account Deficits lead to recessions? The Case of Spain

  31. Topics in International Economics • Global Imbalances • Are Large and Lasting Current Account Deficits Sustainable? • The US Current Account Deficit: Causes and Consequences • The adjustment through the exchange rate. Was the depreciation of the dollar expected? • Do Current Account Deficits lead to recessions? The Case of Spain • Surplus in Current Accounts and International Reserve Accummulation

  32. Topics in International Economics • Balance of Payments Crises

  33. Topics in International Economics • Balance of Payments Crises • Fixed exchange rates and Speculative Attacks… against a currency

  34. Topics in International Economics • Balance of Payments Crises • Fixed exchange rates and Speculative Attacks… against a currency • Fiscal policy and Speculative Attacks

  35. Topics in International Economics • Balance of Payments Crises • Fixed exchange rates and Speculative Attacks… against a currency • Fiscal policy and Speculative Attacks • Opening the Capital Account and Speculative Attacks

  36. Topics in International Economics • Balance of Payments Crises • Fixed exchange rates and Speculative Attacks… against a currency • Fiscal policy and Speculative Attacks • Opening the Capital Account and Speculative Attacks • Banks’ Balance Sheets and Speculative Attacks

  37. Topics in International Economics • Balance of Payments Crises • Fixed exchange rates and Speculative Attacks… against a currency • Fiscal policy and Speculative Attacks • Opening the Capital Account and Speculative Attacks • Banks’ Balance Sheets and Speculative Attacks • Predicting Balance of Payments Crises

  38. Topics in International Economics • Recent Banking Crises

  39. Topics in International Economics • Recent Banking Crises • Banking Regulation

  40. Topics in International Economics • Recent Banking Crises • Banking Regulation • The sub-prime crises, so different from others?

  41. Topics in International Economics • Recent Banking Crises • Banking Regulation • The sub-prime crises, so different from others? • Anatomy of a standard banking crises

  42. Topics in International Economics • Recent Banking Crises • Banking Regulation • The sub-prime crises, so different from others? • Anatomy of a standard banking crises • Relation Between Banking Crises and Balance of Payments Crises

  43. Topics in International Economics • International Trade Issues

  44. Topics in International Economics • International Trade Issues • Bilateralism v/s Multilateralism

  45. Topics in International Economics • International Trade Issues • Bilateralism v/s Multilateralism • Trade Areas: Building Blocks or Stumbling Blocks?

  46. Topics in International Economics • International Trade Issues • Bilateralism v/s Multilateralism • Trade Areas: Building Blocks or Stumbling Blocks? • Tariff Reduction Schemes

  47. Topics in International Economics • International Trade Issues • Bilateralism v/s Multilateralism • Trade Areas: Building Blocks or Stumbling Blocks? • Tariff Reduction Schemes • Trade and Poor Countries

  48. What do you have to do?

  49. What do you have to do? • Nothing!

  50. What do you have to do? • Nothing! • Just kidding…

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