International Financial Policy
Instructors
UEDA Kenichi
Term / Language / Credits
A1 / English / 2
Objectives
Understand key policy issues in international finance from both theoretical and empirical perspectives. (Primarily targeted for master’s-level students of public policy.)
Keywords
International risk sharing, international development, crisis
Schedule
This course will be organized as in the following outline (subject to some changes). Each topic will be based on a few academic papers.
1. International risk sharing and financial liberalization / globalization
a. Basic theory and empirics of risk sharing
b. Reasons for incomplete risk sharing: home bias, sovereign immunity
c. Welfare cost of business cycle
2. International development and financial liberalization / globalization
a. Risk sharing and growth
b. Capital flows and growth
c. Productivity and finance
d. Financial liberalization on growth and volatility
3. Crisis and policy response
a. Big cycle
b. Liquidity crisis
c. Currency crisis
d. Twin or combined crisis
e. Sovereign debt crisis
4. Recent policy issues
a. TBTF, deposit insurance, and macro-prudential regulations / over response
b. Exchange rate regime / optimal currency area
c. International reserve / global savings gluts
d. Policy spillovers / coordination
Teaching Methods
Lecture (discussions encouraged)
Grading
Class participation and exam (final only)
Required Textbook
No textbook
Reference Books
N/A
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 its equivalent).