ECN5461, Seminar in International Economics

Dr. Ali R. Moshtagh

2605 Coleman Hall

(217) 581 - 2719

Office Hours:

Course Description:

A study of the pure and monetary theories of international economics

Course Outline

1. International Finance:

· Balance of Payments

"The U.S. Current Account: The Other Deficit" Craig S. Hakkio, Economic Review, Federal Reserve Bank of Kansas City, Third Quarter 1995

"Is the Large U.S. Current Account Deficit Sustainable?" Jill A. Holman, Economic Review, Federal Reserve Bank of Kansas City, First Quarter 2001

· Exchange Rate Management Systems
· Exchange Arbitrage
· Interest Arbitrage
· Open-Economy Macroeconomics
· International Monetary Systems

The Gold Standard
The Bretton Woods System

· IMF and World Bank

The Early History of the IMF

The Quota System

Conditional Borrowing Rights

Structural Adjustment Programs (SAPs)

2. International Trade:

· The Classical Models· The Heckscher-Ohlin-Samuelson Model
· The Leontief Paradox
· The Stolper-Samuelson Model
· The Factor Price Equalization Model
· Modern Theories of International Trade

3. Commercial (Trade) Policy:

· Tariffs
· The Effective Rate of Protection
· Import Quotas
· Voluntary Export Restraints (VERs)
· Export Subsidies
· Dumping
· Trading Blocs




· GATT, WTO, and Global Exchange

Grade Policy:

Your grades will be based on the accumulated total of your scores on the following:

Midterm Exam 100 Points
Final Exam 100 Points
Country Report 100 Points
Total 300 Points

Note 1:

No Exam grades will be eliminated. No Exams will be made up unless proper arrangements have been made prior to the scheduled Exam date. Messages left on my voice mail will not be considered as proper arrangements.

Country Report:

Each student is to select a country (from Latin America, Asia, or Africa) for independent study throughout the term. You will be required to submit a report dealing with the following topics:

· A brief political and economic history of the country;

· An examination of the country's patterns of trade and investment, major import and export products, major trading partners, major industries, major agricultural products, and the balance of payments;

· The major economic and social problems facing the country. For example:

a. Unemployment
b. Illiteracy
c. Food shortages
d. Inequality in income distribution
e. Population growth
f. Rural stagnation
g. International dependency, etc.;

· Evaluation of the government's management of the country's international payments; i.e., examine changes in the exchange rate, changes in international reserves, etc.; and

· Conclusion and recommendations.

The report should be limited to 20 pages.



Encyclopedia, various publications of the World Bank and the International Monetary Fund (IMF) such as International Financial Statistics, and Balance of Payments Yearbook, etc. the Internet, and personal initiatives.

Note 2:

If you have a documented disability and wish to receive academic accommodations, please contact the Coordinator of the Office of Disability Services (581-6583) as soon as possible.

Reference and Text Books:

Jagdish N. Bhagwati, Arvind Panagraiya, and T.N. Srinivasan, Lectures on International Trade, Second Edition, The MIT Press, Cambridge, Massachusetts, 1998.

Thomas A. Pugel and Peter H. Lindert, International Economics, Eleventh Edition, Irwin
McGraw-Hill Companies, 2000.

Robert E. Baldwin, and J. David Richardson, International Trade and Finance Readings, Third Edition, Little, Brwon and Company, 1986.