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Unit 1: Studying the Global Economy

Topic 1: Introductory

Class 1: Introduction and Overview: What is IPE? Why should we care? (Tue 8 Sept) Slides / Audio

  • Read Course Site
  • Carefully Read Course Policies
  • Grieco & Ikenberry, Ch 1: “Introduction.”

Topic 2: Perspectives on International Political Economy

Class 2: Classic Perspectives on States and Markets (Thur 10 Sept) Slides / Audio

  • Locke, John. Second Treatise of Government. 1690. Chs VIII-IX. (22 pp) Available via: http://www.constitution.org/jl/2ndtreat.htm
  • Smith, Adam. Lectures on Jurisprudence. pp 207-209. (3 pp)
  • Smith, Adam. The Wealth of Nations. Bk IV, Ch 2; and Selection on Free Trade. (24 pp)
  • Marx, Karl, and Friedrich Engels. Selections from The German Ideology. In Selected Writings. Edited by David McLellan. Oxford: Oxford University Press, 2000. (23 pp)
  • Marx, Karl. “Preface to A Critique of Political Economy.” In Selected Writings. (4 pp)
  • Recommended: Keynes, JM. “The of End of Laissez-Faire.” [1926] Reprinted in Essays in Persuasion. (22 pp)

Class 3: Contemporary Perspectives on IPE (Tue 15 Sept) Slides

  • Summers, Lawrence H. “Reflections on Economic Policy in a Time of Crisis.” Council of Foreign Relations, June 12, 2009. http://www.cfr.org/publication/19621/reflections_on_economic_policy_in_time_of_crisis.html.
  • Eichengreen, Barry J. “Dental Hygiene and Nuclear War: How International Relations Looks from Economics.” International Organization 52, no. 4 (1998): 993-1012 (Careful: don’t print the 50 pp bibliography!)
  • Cohen, Benjamin J. “Introduction.” In Building Bridges: The Construction of International Political Economy, edited by Benjamin J. Cohen. Princeton: Princeton University Press, 2008.

Topic 3: Explaining Foreign Economic Policy

Class 4: International Structures: The Distribution of Power and International Institutions (Thur 17 Sept) Slides / Audio

  • Grieco & Ikenberry, Ch 4: “The Political Foundations of the World Economy.”
  • Krasner, Stephen D. “State Power and the Structure of International Trade.” (In Frieden & Lake.)
  • Keohane, Robert O. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press, 1984. Ch 4. Ch 5 Recommended. (16 pp)
  • Recommended: Wallerstein, Immanuel. “The World-System after the Cold War.” Journal of Peace Research 30, no. 1 (1993): 1-6.

Class 5: The Three I’s: Domestic Interests, Institutions, and Ideas (Tue 22 Sept) Slides / Audio

  • Schonhardt-Bailey, Cheryl. From the Corn Laws to Free Trade: Ideas, Interests, and Institutions in Historical Perspective. Cambridge, MA: MIT Press, 2006. Ch 2. (16 pp)
  • Irwin, Douglas A. “Political Economy and Peel’s Repeal of the Corn Laws.” Economics and Politics 1, no. 1 (1989): 41-59.
  • Rogowski, Ronald. “Commerce and Coalitions: How Trade Affects Domestic Political Alignments.” (In Frieden & Lake.)
  • North, Douglass C. “Institutions and Economic Growth: A Historical Introduction.” (In Frieden & Lake.)
  • Recommended: Keynes, JM. The General Theory of Employment, Interest, and Money. Ch 24.

Class 6: Economic Constraints: The Balance of Payments (Thur 24 Sept) Slides / Audio

  • Grieco & Ikenberry, Ch 3: “The Economics of International Money & Finance.” pp 69-90. (21 pp)
  • Cohen, Benjamin J. “The Triad and the Unholy Trinity: Problems of International Monetary Cooperation.” (In Frieden & Lake.)
  • Friedman, Milton. “The Case for Flexible Exchange Rates.” In Essays in Positive Economics, 157-203. Chicago: University of Chicago Press, 1953. Parts IV-V (pp 196-203). (7 pp)

-Thursday, 24 Sept: Deadline for First Discussion Post-

-Monday, 28 Sept: Jeffrey Williamson Talk-

Unit 2: Trading Goods and Services

Topic 4: Trade in Theory

Class 7: Models of Trade Policy (Tue 29 Sept) Slides / Audio

  • Grieco & Ikenberry, Ch 2: “The Economics of International Trade.”
  • Alt and Gilligan. “The Political Economy of Trading States.” (In Frieden & Lake.)
  • Coughlin, Chrystal, and Wood. “Protectionist Trade Policies: A Survey of Theory, Evidence, and Rationale.” (In Frieden & Lake.)

-Wednesday, 30 Sept, 10:30 PM: Essay 1 Due-

Topic 5: Trade in Practice

Class 8: Trade During the Depression (Thur 1 Oct) Slides

  • Eichengreen, Barry E. “The Political Economy of the Smoot-Hawley Tariff.” (In Frieden & Lake.)
  • Bailey, Michael, Judith Goldstein, and Barry Weingast. “The Institutional Roots of American Trade Policy: Politics, Coalitions, and International Trade.” World Politics 49, no. 3 (1997): 309-38. (20 pp)
  • Hiscox, Michael J. “The Magic Bullet? The RTAA, Institutional Reform, and Trade Liberalization.” International Organization 53, no. 4 (1999): 669-98. (21 pp)

Class 9: The Postwar Trade Regime (Tue 6 Oct) Slides / Audio

  • Barton, et al. The Evolution of the Trade Regime: Politics, Law, and Economics of the GATT and the WTO. Princeton: Princeton University Press, 2006. Ch 1. “Political Analysis of the Trade Regime.” (26 pp)
  • Irwin, Douglas A., Petros C. Mavroidis, and Alan O. Sykes. The Genesis of the GATT. New York: Cambridge University Press, 2008. Introduction, 1.1-1.3, 1.7-1.8, 1.12.
  • Recommended: Milner, Helen V., and Keiko Kubota. “Why the Move to Free Trade? Democracy and Trade Policy in the Developing Countries.” International Organization 59, no. 1 (2005): 107-43.

Class 10: The Global Trade Regime Today (Thur 8 Oct) Slides / Audio

  • Kahler, Miles. “Multilateralism with Small and Large Numbers.” International Organization 46, no. 3 (1992): 681-708.
  • Mansfield, Edward D., and Helen V. Milner. “The New Wave of Regionalism.” International Organization 53, no. 3 (1999): 589-627.
  • Cox, Ronald W. “Explaining Business Support for Regional Trade Agreements.” (In Frieden & Lake.)
  • Barton, et al. The Evolution of the Trade Regime. Ch 6. “Expansion of GATT/WTO Membership and the Proliferation of Regional Groups” (28 pp)
  • Lake, David A. “British and American Hegemony Compared: Lessons for the Current Era of Decline.” (In Frieden & Lake.)
  • Recommended: Irwin, Douglas A. Free Trade under Fire. 2nd ed. Princeton, N.J.: Princeton University Press, 2005. Ch 3: “The Employment Rationale for Protectionism.”
  • Recommended: “Weighing up the WTO,” Economist, 23 November 2002.
  • Recommended: “Is there any point to the WTO?” Economist, 4 August 2005.

-Thursday, 8 October: Dani Rodrik Talk-

-Tuesday, 13 October: Fall Break-

Unit 3: The International Monetary System

Topic 6: International Monetary Exchange in Theory

Class 11: The International Monetary System (Thur 15 Oct) Slides / Audio

  • Grieco & Ikenberry, Ch 3: “The Economics of International Money and Finance.” pp 57-69. (12 pp)
  • Frieden, Jeffry A. “Exchange Rate Politics.” (In Frieden & Lake.)
  • Broz, J. Lawrence. “The Domestic Politics of International Monetary Order: The Gold Standard.” (In Frieden & Lake.)
  • Recommended: Redish, Angela. “Bimetallism.” In EH.net Encyclopedia. http://eh.net/encyclopedia/article/redish.bimetallism.
  • Recommended: Locke, John. Some Considerations of the Consequences of the Lowering of Interest and the Raising the Value of Money. 1691. (Selection on Token Currencies and International Norms.)

Topic 7: International Monetary Exchange in Practice

Class 12: The Gold Standard (Tue 20 Oct) Slides / Audio

  • Hume, David. Essays: Moral, Political, Literary. 1754, 1785. “Of the Balance of Trade.”
  • Eichengreen, Barry J., and Marc Flandreau. “Introduction.” In The Gold Standard in Theory and History, edited by Barry J. Eichengreen and Marc Flandreau, 1-30. London: Routledge, 1997. (30 pp)
  • Recommended: Frieden, Jeffry A. “The Dynamics of International Monetary Systems: International and Domestic Factors in the Rise, Reign, and Demise of the Classical Gold Standard.” In The Gold Standard in Theory and History, edited by Barry J. Eichengreen and Marc Flandreau, 207-27. London: Routledge, 1997.

Class 13: The Decline and Fall of the Gold Standard (Thur 22 Oct) Slides / Audio

  • Keynes, JM. A Tract on Monetary Reform. London: Macmillan, 1924. Preface; Skim Ch 5.
  • Kindleberger, Charles P. The World in Depression, 1929-1939. Berkeley: University of California Press, 1973. Ch 14: “An Explanation of the 1929 Depression.” Available via: http://www.mtholyoke.edu/acad/intrel/depress.htm.
  • Recommended: Eichengreen, Barry J. Globalizing Capital: a history of the international monetary system. Princeton, N.J.: Princeton University Press, 1996. Ch 3: “Interwar Instability.” (47 pp)

Class 14: The Postwar Bretton Woods System (Tue 27 Oct) Slides / Audio

  • Ikenberry, G. John. “Creating Yesterday’s New World Order: Keynesian “New Thinking” and the Anglo-American Postwar Settlement.” In Ideas & Foreign Policy.
  • Keynes, JM. “Proposals for an International Currency Union.” 2nd Draft. November 18, 1941. (19 pp)
  • Nixon, Richard. Speech Closing the Gold Window, August 15, 1971. Available via: http://www.youtube.com/watch?v=iRzr1QU6K1o.

-7 PM, Tues, 27 Oct: Screening of Niall Ferguson’s The Ascent of Money (2009)- (Available Online)

Class 15: After Bretton Woods (Thur 29 Oct) Slides / Audio

  • McNamara, Kathleen R. The Currency of Ideas: Monetary Politics in the European Union. Ithaca: Cornell University Press, 1998. Ch 1; Skim Ch 6.
  • Cohen, Benjamin J. The Future of Money. Princeton, N.J.: Princeton University Press, 2004. Ch 1.
  • Stiglitz, Joseph E. “How to Fix the Global Economy.” The New York Times, October 3, 2006. Available via: http://www.nytimes.com/2006/10/03/opinion/03stiglitz.html.
  • Williamson, John. “Did the Washington Consensus Fail?.” Peterson Institute for International Economics, November 6, 2002. http://www.iie.com/publications/papers/paper.cfm?ResearchID=488.
  • Eichengreen, Barry. “China’s Exchange Rate Regime: The Long and Short of It.” Working Paper, March 23, 2006. Available via: http://www.econ.berkeley.edu/~eichengr/research/short.pdf.
  • LeVine, Steve. “China’s Yuan: The Next Reserve Currency?.” BusinessWeek, May 26, 2009. http://www.businessweek.com/globalbiz/content/may2009/gb20090522_665312.htm.
  • Recommended: Graham Bird, “Where Do We Stand on Choosing Exchange Rate Regimes in Developing and Emerging Economies?,” World Economics, January 2002, pp. 145-167.
  • Recommended: Fleming, J. Marcus. “Mercantilism and Free Trade Today.” In Essays on Economic Policy, 361-81. New York: Columbia University Press, 1978. (20 pp)

-Thurs, 29 Oct: Deadline for Second Discussion Post-

Unit 4: Migration

Topic 8: Migration: Pushes, Pulls, and Reactions

Class 16: Theorizing about and Measuring Migration (Tue 3 Nov) Slides / Audio

  • Scheve, Kenneth F. and Matthew J. Slaughter. 2001. “Labor Market Competition and Individual Preferences Over Immigration Policy.” Review of Economics and Statistics 83 (1): 133-145.
  • Collins, William J., Kevin H. O’Rourke and Jeffrey G. Williamson. 1999. “Were trade and factor mobility substitutes in history?” NBER Working Paper. 1997. (skim)

-10:30 PM, 4 November: Essay 2 Due-

Class 17: Reactions to Migration (Thur 5 Nov) Slides / Audio

  • O’Rourke, Kevin H., and Jeffrey G. Williamson. Globalization and History. Ch 10: “Globalization Backlash: Migration Policy Gets Restrictive.” (20 pp)
  • Kapur, Devesh and John McHale, “Migration’s New Payoff,” Foreign Policy (November/December 2003): 49-57.
  • Locke, John. “For a General Naturalisation.” In Locke: Political Essays, edited by Mark Goldie, 322-26. New York: Cambridge University Press, 1997.
  • Huntington, Samuel P. “The Hispanic Challenge.” Foreign Policy (2004): 30-45.

Unit 5: Special Topics in International Political Economy

Topic 9: Sustainability

Class 18: “Be Fruitful and Multiply”: Economic Development and Population Growth (Tue 10 Nov) Slides / Audio

  • Malthus, T. R. An Essay on the Principle of Population. [1898] Edited by Donald Winch. Cambridge: Cambridge University Press, 1992. (Selections)
  • Kaplan, Robert D. “The Return of Thomas Malthus.” The Atlantic Monthly, July 1, 2008. http://thecurrent.theatlantic.com/archives/2008/07/the-return-of-thomas-malthus.php.
  • Lahart, Justin, Patrick Barta, and Andrew Batson. “New Limits to Growth Revive Malthusian Fears.” The Wall Street Journal, March 24, 2008. http://online.wsj.com/article/SB120613138379155707.html.
  • Recommended: Pamela S. Chasek, David L. Downie, & Janet Welsh Brown, Global Environmental Politics. Westview Press, 4th edition 2006). ISBN: 0813343321. Chs. 4-5. (On Sustainable development.) On Library Reserve (GE170 .P67 2006)

-7 PM, Tues, 10 Nov: Screening of Al Gore’s “An Inconvenient Truth.”-

Class 19: “Dominion over…the Earth”: International Environmental Politics (Thur 12 Nov) Slides / Audio

Class 20: What Shall we Bequeath to our Progeny? Our Financial Legacy (Tues 17 Nov) Slides / Audio

  • Paul, Ron. “Government Debt: The Greatest Threat to National Security.” Texas Straight Talk. 24 October, 2004. Available via: http://www.house.gov/paul/tst/tst2004/tst102504.htm
  • Krugman, Paul. “Averting the Worst.” The New York Times, August 9, 2009. Available via: http://www.nytimes.com/2009/08/10/opinion/10krugman.html?_r=1&partner=rssnyt&emc=rss.
  • Schultz, Kenneth A., and Barry R. Weingast. “The Democratic Advantage: Institutional Foundations of Financial Power in International Competition.” International Organization 57, no. 1 (2003): 3-42. Skim: just get outline of major arguments.
  • Stiglitz, Joseph E. “Odious Rulers, Odious Debts.” The Atlantic Monthly, September 10, 2003. http://www2.gsb.columbia.edu/faculty/jstiglitz/download/opeds/Odious_Debt.pdf.
  • One.org. DATA Report 2008. “Debt.” Available via: http://www.one.org/c/us/issuebrief/92/
  • Recommended: Jefferson, Thomas. Letter to James Madison. 6 September 1789. Available via: http://press-pubs.uchicago.edu/founders/documents/v1ch2s23.html
  • Recommended: Madison, James. Letter to Thomas Jefferson. 4 February 1790. Available via: http://press-pubs.uchicago.edu/founders/documents/v1ch2s24.html
  • Recommended: Tomz, M. Reputation and international cooperation: sovereign debt across three centuries. Princeton University Press, 2007. Ch 9: “Reputation and Cooperation under Anarchy.” pp 221-241. (20 pp)
  • Recommended: Creadon, Patrick. I.O.U.S.A. Movie. Roadside Attractions, 2008. Available via Netflix. Shortened version available for free via: http://www.youtube.com/watch?v=O_TjBNjc9Bo

Topic 10: Globalization

Class 21: Globalization in Perspective (Thur 19 Nov) Slides / Audio

  • Grieco & Ikenberry, Ch 7: “Economic Globalization and Political Backlash.” (40 pp)
  • Williamson, Jeffrey. “Globalization and Inequality, Past and Present.” (In Frieden & Lake.)
  • Rodrik, “Sense and Nonsense in the Globalization Debate.” (In Frieden & Lake.)

Class 22: Responses to Globalization (Tue 24 Nov) Slides / Audio

  • Rodrik, Dani. “Trading in Illusions.” Foreign Policy (2001): 55-62.
  • McKibben, B. Deep Economy: The Wealth of Communities and the Durable Future: Times Books, 2007. Ch 1.
  • Recommended: Rodrik, Dani. Has Globalization Gone Too Far? Washington, D.C.: Institute for International Economics, 1997. Ch 1: “Introduction.” (11 pp)

-Thursday, 26 November: Thanksgiving-

Topic 11: International Order: Distribution & Global Governance

Class 23: Who will be the Actors of the Future? States, MNCs, IOs, the Media and INGOs (Tue 1 Dec) Slides / Prof Stroup Slides

  • Grieco and Ikenberry, Ch 10: “Conclusion.” (10 pp)
  • Strange, Susan. “States, Firms and Diplomacy.” (In Frieden & Lake.)
  • Fieldhouse, David. “A New Imperial System? The Role of the Multinational Corporation Reconsidered.” (In Frieden & Lake.)
  • McLean, Prince. “Jon Stewart exposes Apple stock manipulation.” Apple Insider, March 13, 2009. http://www.appleinsider.com/articles/09/03/13/jon_stewart_exposes_apple_stock_manipulation.html. John Stewart video available via: http://www.thedailyshow.com/watch/thu-march-12-2009/jim-cramer-pt–2
  • Rosecrance, R. “The rise of the virtual state: territory becomes passe.” Foreign Affairs 75, no. 4 (1996): 33-71.
  • Keck, Margaret E., and Kathryn Sikkink. Activists beyond borders: Advocacy networks in international politics. Cornell University Press, 1998. Ch 6: “Conclusions.” (19 pp)
  • Recommended: Caves, Richard. “The Multinational Enterprise as an Economic Organization.” (In Frieden & Lake.)

Class 24: Cui bono: Who Wins? Who Loses? (Thur 3 Dec) Slides / Audio

  • Krugman, Paul. “How Did Economists Get It So Wrong?” New York Times Magazine, September 2, 2009. http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html.
  • Sachs, Jeffrey. Investing in Development: A Practical Plan to Achieve the Millennium Development Goals. London: 2005. Ch 3: “Why the World is Falling Short of the Goals.” pp 28-52 (24 pp) Available via: http://www.unmillenniumproject.org/documents/MainReportComplete-lowres.pdf
  • Freeman, “Are Your Wages Set in Beijing.” (In Frieden & Lake.)
  • Krugman, Paul. “In Praise of Cheap Labor: Bad Jobs at Bad Wages Are Better Than No Jobs at All.” Slate, March 20 1997.
  • Kristof, Nicholas D., and Sheryl WuDunn. “Two Cheers for Sweatshops.” New York Times, September 24, 2000.
  • Recommended: Kapstein, Ethan B. “Modes of International Economic Justice.” Ethics and International Affairs 75, no. 3 (2004).

-Thursday, 3 December: Deadline for Third Discussion Post-

-Thursday, 3 December, Final Exam Distributed-

-10:30 PM, Tuesday, 8 December: Final Exam Due-

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