International Financial Policy


Kenichi UEDA

Credits / Language / Semester

2Credits / English / Winter


Understand key policy issues in international finance from both theoretical and empirical perspectives.


Risk sharing, productivity differential, crisis, policy coordination


The course consists of lectures in a traditional fashion. It will be organized as in the following outline (subject to some changes). For each topic, a few papers are assigned for reading.

1. International risk sharing and financial liberalization / globalization
a. Basic theory and empirics of risk sharing
b. Risk sharing and growth
c. Reasons for incomplete risk sharing: home bias, sovereign immunity
d. Welfare cost of business cycle

2. International development and financial liberalization / globalization
a. Financial deepening and economic development
b. Foreign banks
c. Productivity and finance

3. Crisis
a. Big cycle
b. Strategic default / hyper inflation
c. Multiple equilibria
d. Twin crisis and too big to fail

4. Recent policy issues
a. Exchange rate regime / optimal currency area
b. International reserve / global savings gluts
c. Policy spillovers / coordination / macro prudential regulations
d. Over response

Teaching Methods



Class participation and exam.

Required Textbooks


Reference Books

Reference list will be distributed in the first class.

Notes on Taking the Course

Basic understanding of micro and macroeconomics as well as statistical methods/econometrics are necessary. A prerequisite is Macroeconomics for Public Policy (or their equivalents).

Miscellaneous Information

Those who would like to deeper understand the crisis issues are recommended to also take the Case Study course on Financial Crisis.

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