Syllabus 1. General Information Class Thursday ... - Henrik Enderlein

Academic Year 2005/2006
Spring Semester 2006
U4 „States and Markets“
Syllabus
1. General Information
Class Thursday 11-13 (first session: 02.02)
Venue
Tba
Convener Henrik Enderlein
Office Breite Straße, Room 2.12
Telephone (030) 212 312 303
E-Mail
enderlein@hertie-school.org
Office Hours Tuesday, 17-18
Lab Course Group A Monday 14-15 (first session: 06.02)
Group B Monday 14-15 (first session: 06.02)
Group C Monday 15-16 (first session: 06.02)
Group D Monday 15-16 (first session: 06.02)
Venue
tba
Tutors
Katri Kemppainen-Bertram, Joachim Schmitz
2. Aim of the Course
Following up on the introductory class of the first semester, U4 aims at providing a
more hands-on approach to the analysis of economic problems.
In the first semester core topics of micro- and macroeconomics, theories and models
were learned and understood. Applications were mainly be used as illustrations. In
the second semester the starting point of teaching is always a concrete policy
problem. Research and theoretical elements are studied to come to concrete policy
options.
3. Teaching
There are three main elements:
1) The weekly class meetings should be as interactive as possible. Every week,
there will be two or three presentations, followed by general discussions on
the topic.
2) The lab is organized in four groups. Each group will have to prepare the
session together, mainly based on input from the two TAs who will focus on
technical aspects of the topic.
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3) There will be a course website on Blackboard with readings. For each week,
there is an “easy reading” (usually short articles from The Economist or
Foreign Affairs or a similar source) and a “hard reading” (usually a state of the
art research paper in economics). You have to read both pieces BEFORE the
start of the lab on Monday.
4. Requirements & Grading
You are all required to prepare classes, to participate actively in class discussions,
and to attend the Lab sessions.
-- See the document “Rules of the Game” --
Presentation 25%
Report 30%
Fact Sheet 20%
Memo 15%
Participation 10%
6. Overview
Please note that this schedule is indicative only. Depending on the time needed to
wrap-up a topic, I will adjust the schedule as appropriate.
Week Date Topic
#1 02.02.2006 General Introduction
#2 09.02.2006 Sugar/Cotton Subsidies and the WTO
#3 16.02.2006 Growth, Innovation and Trade
#4 23.02.2006 The IMF and the World Bank
#5 02.03.2006 Globalization and the Size of Government
#6 09.03.2006 The Oil Market
#7 16.03.2006 Stock Market Crashes 1929 and 1987
#8 23.03.2006 Monetary Policy: Fed & ECB
#9 30.03.2006 Sovereign Defaults: Argentina & Russia
#10 06.04.2006 Fiscal Policies in EMU
#11 13.04.2006 China and the U.S.
20.04.2006 +++ Easter Break +++
#12 27.04.2006 From Communism to Capitalism
#13 04.05.2006 The End of Poverty
#14 !!05.05.2006!! Unemployment in Europe
#15 11.05.2006 The Economics of the Kyoto Protocol
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7. Detailed Schedule
Session 1:
Topic:
9 February
Sugar/Cotton Subsidies and the WTO
Presentation : “Why do the US and the EU want to keep their cotton/sugar
subsidies?”
Fact-Sheet 1: “The organization of international trade cooperation”
Fact-Sheet 2: “Trade Theories”
Memo 1: “Briefing to the Trade Commissioner of the EU: How to react to the WTO
decision that EU sugar subsidies are illegal”
Memo 2: “Briefing to the President of Mali: Why US cotton subsidies are illegal”
Session 2:
Topic:
16 February
Growth, Innovation and Trade
Presentation 1: “Why do some countries grow quicker than others?”
Presentation 2: “A historical view on technology and growth”
Fact-Sheet 1: “Determinants of Growth” (David Scheller)
Fact-Sheet 2: “Measures of innovation” (Piotr Bonislawski)
Memo 1: “Background memo on the Lisbon Strategy to the Dutch Ministry of
Economic Afffairs prior to a meeting with a group of economists”
Memo 2: “To the IMF Excecutive Board: Outlining a growth strategy for Iraq”
Session 3:
Topic:
23 February
The IMF and the World Bank
Presentation 1: “Should the IMF and the World Bank be reformed?”
Presentation 2: “Positive and negative effects of IMF programs”
Presentation 3: “The Washington Consensus”
Fact-Sheet 1: “The economic rationales behind the Bretton-Woods institutions”
Fact-Sheet 2: “The role and set-up of the Bretton-Woods institutions”
Memo 1: “Briefing to the IMF Chairman for a discussion with journalists on academic
evidence that IMF programs do not generate growth”
Memo 2: “Memo to the German IMF Executive Director: Should China be given more
weight in IMF decisions?”
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Session 4:
Topic:
2 March
Globalization and the Size of Government
Presentation 1: “The impact of globalization on the size of government”
Presentation 2: “Is globalization a new phenomenon?”
Presentation 3: “International capital markets: benefactor or menace?”
Fact-Sheet 1: “Measures of globalization”
Fact-Sheet 2: “Do more open economies have bigger governments: the debate”
Memo 1: “Memo to the Chairman of the German Social Democrats: does
globalization call for smaller governments”
Memo 2: “Memo to the CEO of Goldman Sachs for a meeting with Attac
Representatives: on the usefulness of free capital markets”
Session 5:
Topic:
Presentation 1:
Presentation 2:
9 March
The Oil Market
“The impact of the oil price on economic growth”
“How to get energy: a comparison of different strategies”
Fact-Sheet 1: “How long will oil resources last?”
Fact-Sheet 2: “The oil market: set-up and functioning”
Memo 1: “Memo to the Secretary General of OPEC for a meeting with journalists:
why the recent rise of the prize of oil is justified”
Memo 2: “Memo to the US President: Alternatives to Oil”
Memo 3: “Memo the German Foreign Minister: Oil resources in Iraq”
Session 6:
16 March
Topic: Stock Market Crashes 1929 and 1987
Presentation 1: “Stock market crashes of 1929/1987 and their consequences”
Presentation 2: “Are markets rational?”
Fact-Sheet 1: “How to determine the value of a company”
Fact-Sheet 2: “Capital market instruments”
Memo 1: “Memo to the Governing Board of Attac: Should the stockmarket be
criticized?”
Memo 2: “Memo to the Chairman of the Federal Reserve Board: Should Central
Banks pay attention to asset prices”
Session 7:
Topic:
23 March
Monetary Policy: Fed & ECB
Presentation 1: “Transparency and accountability of a central bank”
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Presentation 2: “Do the ECB and the Fed behave differently?”
Fact-Sheet 1: “Comparison of central bank strategies”
Fact-Sheet 2: “International comparison of central bank mandates and strategies”
Memo 1: “Memo to the ECB President: Differences between the Fed and the ECB”
Memo 2: “Memo to the EU Commissioner for Economic and Monetary Affairs: When
should accession countries join EMU?”
Session 8:
Topic:
30 March
Sovereign Defaults: Argentina & Russia
Presentation 1: “The Russian Default”
Presentation 2: “The Argentinean Default”
Fact-Sheet 1: “Suggestions to improve the global financial architecture”
Fact-Sheet 2: “International organizations and debt management”
Memo 1: „Memo to the Chairman of the Institute of International Finance:
Approaches to Private Sector Involvement”
Memo 2: „Background memo to the Russian Finance Minister for a visit at the Paris
Club”
Session 9:
Topic:
6 April
Fiscal Policies in EMU
Presentation 1: “Inflation differentials in the euro area”
Presentation 2: “The Stability and Growth Pact: why and how?”
Fact-Sheet 1: “The legal set-up of the Stability and Growth Pact and the Excessive
Deficit Procedure”
Fact-Sheet 2: “Deficits and debt in euro area member states”
Memo 1: “Memo to the German Finance Minister: The recent reform of the SGP”
Memo 2: “Memo to the Polish Minister of Finance: Does Poland have to comply with
the SGP?”
Session 10:
Topic:
13 April
China and the U.S.
Presentation 1: “The US twin deficit”
Presentation 2: “Is the yuan undervalued?”
Fact-Sheet 1: “Advantages and drawbacks of different exchange rate regimes”
Fact-Sheet 2: “Current imbalances in the Global Economy”
Memo 1: “Memo to the US Treasury Secretary: Should the US dollar appreciate?”
Memo 2: “Memo to the President of AFL-CIO: Chinese imports and US employment”
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Session 11:
Topic:
27 April
From Communism to Capitalism
Presentation 1: “Shock Therapy vs. gradual adjustment”
Presentation 2: “How to privatize”
Fact-Sheet 1: “An overview of transition strategies”
Fact-Sheet 2: “The economic performance of transition countries”
Memo 1: “Memo to the German Foreign Minister for a visit to China: The Chinese
Miracle”
Memo 2: “Memo to the German Economics Minister for a panel discussion: ‘Has
transition in East Germany failed?’”
Easter Break: Week of April 17 – April 21
Session 13:
Topic:
4 May
The End of Poverty
Presentation 1: “Poverty in Africa: the main reasons”
Presentation 2: “Fighting Poverty: an overview of strategies”
Fact-Sheet 1: “Poverty in the World”
Fact-Sheets 2&3: “Economic Theories on Development” (please share the work but
hand-in two different fact-sheets)
Memo 1: “Memo to the German Minister of Economic Cooperation and Development:
should Germany spend 0.7% on GDP to development aid?”
Memo 2: “Memo to the US Treasury Secretary: Why the US can’t spend 0.7% of
GDP on development aid”
Session 14: FRIDAY!!! 5 May 11-13h
Topic:
Unemployment in Europe
Presentation 1: „Employment and Unemployment in Europe“
Presentation 2: “The anglo-saxon labor market miracle – does it exist?“
Fact-Sheet 1: “An overview of European labor markets”
Fact-Sheets 2&3: Economic Theories of Unemployment (please share the work but
hand-in two different fact-sheets)
Memo 1: “Memo to the President of ETUC for a meeting with the ECB President:
arguments against structural reform”
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Memo 2: “Memo to the Chairman of the Federal Reserve System for an interview
with European journalists on unemployment in Europe”
Session 14: Week of May 8 – May 12
Topic:
The Economics of the Kyoto Protocol
Presentation 1: “The costs of the Kyoto Protocol for the US”
Presentation 2: “Costs and benefits of the Kyoto Protocol”
Fact-Sheet 1: “Economic approaches to the provision of public goods”
Fact-Sheet 2: “The Kyoto protocol”
Memo 1: “Memo to the US President: Why the US will not sign the Kyoto Protocol”
Memo 2: “Memo to the President of the EU Commission for a meeting with members
of the US Congress: why the US should adopt the Kyoto Protocol”
Memo 3: “Memo to the Canadian Minister of Environment: Costs and Benefits of
Kyoto for Canada”
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