Economics 237 - Financial Globalization, Growth and Crises

This course surveys the recent wave of financial globalization and assesses both its merits and potential risks. In particular, we will examine the most important potential benefit of financial globalization, an increased rate of economic growth that can be a powerful tool in alleviating poverty. We will analyze the theoretical arguments for a growth-enhancing effect of globalization and discuss the empirical evidence. We will then turn to the most important potential drawback: the risk of a devastating financial crisis, particularly in emerging market economies that have only recently opened to international capital movements. Throughout the course we will emphasize the conditions and policies under which financial globalization is likely to be successful. The course will conclude with an analysis of the effect of financial globalization, as well as increased trade openness, on inflation and the conduct of monetary policy.

Requisite: ECON 111/111E. Limited to 30 students. Not available to students who have taken ECON 435. Fall and spring semester. Professor Honig.

How to handle overenrollment: Some preference will be given to a) students who have taken fewer 200 level economics classes and b) economics majors. The class will be selected to achieve a group with diverse academic backgrounds and interests.

Students who enroll in this course will likely encounter and be expected to engage in the following intellectual skills, modes of learning, and assessment: Quantitative reasoning, graphical analysis, regular readings, problem sets, and in-class exams.