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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 10 Feb)

  • Grieco & Ikenberry, Ch 1: “Introduction.”

Class 2: Alternative Perspectives on IPE (Thur 12 Feb)

  • 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 2: Explaining Foreign Economic Policy

Class 3: Structural Theories: The Distribution of Power and International Institutions (Tue 17 Feb)

  • 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.)
  • Lake, David A. “British and American Hegemony Compared: Lessons for the Current Era of Decline.” (In Frieden & Lake.)

Class 4: The Three I’s: Domestic Interests, Institutions, and Ideas (Thur 19 Feb)

  • 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.)

Topic 3: Major Perspectives on IPE

Class 5: Mercantilism (Tue 24 Feb)

  • Mun, Thomas. England’s Treasure by Forraign Trade. 1664. Ch 21.
  • Locke, John. Some Considerations of the Consequences of the Lowering of Interest and the Raising the Value of Money. 1691. (Selection on the Balance of Trade; Selection on “Raising the Coin”)
  • Cary, John. Essay on the Coyn and Credit of England. 1696. (12 pp)
  • Locke, John. “For a General Naturalisation.” In Locke: Political Essays, edited by Mark Goldie, 322-26. New York: Cambridge University Press, 1997.
  • Strongly Recommended: Locke, John. Second Treatise of Government. 1690. Ch 5: “Of Property.”

Class 6: Classical Liberalism (Thur 26 Feb)

  • Smith, Adam. Lectures on Jurisprudence. Selections.
  • Smith, Adam. The Wealth of Nations. Bk IV, Chs 1-2; and Selection on Free Trade.
  • Recommended. Hume, David. Essays: Moral, Political, Literary. 1754, 1785. “Of Money” and “Of the Jealousy of Trade.”

Class 7: Marxism (Tue 3 Mar)

  • 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)
  • Lenin, V. I. Imperialism: The Highest Stage of Capitalism. 1917. Ch 7. Available via: http://www.marxists.org/archive/lenin/works/1916/imp-hsc/.
  • Wallerstein, Immanuel. “The World-System after the Cold War.” Journal of Peace Research 30, no. 1 (1993): 1-6.

-5:30 PM, 4 March: Mock Exam Due-

Class 8: New Liberalism (Thur 5 Mar)

  • Keynes, JM. A Tract on Monetary Reform. London: Macmillan, 1924. Preface; Skim Ch 5.
  • Keynes, JM. The General Theory of Employment, Interest, and Money. Ch 23, I-V; Ch 24. (31 pp)

Unit 2: Trading Goods and Services

Topic 4: Trade in Theory

Class 9: Models of Trade Policy (Tue 10 Mar)

  • 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.)

Topic 5: Trade in Practice

Class 10: Trade During the Depression (Thur 12 Mar)

  • 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 11: The Postwar Trade Regime (Tue 17 Mar)

  • 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 12: The Global Trade Regime Today (Thur 19 Mar)

  • 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)

-24-26 March: Spring Break-

Unit 3: The International Monetary System

Topic 6: International Monetary Exchange in Theory

Class 13: The International Monetary System (Tue 31 Mar)

  • Grieco & Ikenberry, Ch 3: “The Economics of International Money and Finance.”
  • Cohen, Benjamin J. “The Triad and the Unholy Trinity: Problems of International Monetary Cooperation.” (In Frieden & Lake.)
  • 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.)

Topic 7: International Monetary Exchange in Practice

Class 14: The Gold Standard (Thur 2 Apr)

  • 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.

-5:30 PM, 3 April: Essay 1 Due-

Class 15: The Decline and Fall of the Gold Standard (Tue 7 Apr)

  • 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.
  • Ikenberry, G. John. “Creating Yesterday’s New World Order: Keynesian “New Thinking” and the Anglo-American Postwar Settlement.” In Ideas & Foreign Policy.
  • Nixon, Richard. Speech Closing the Gold Window, August 15, 1971. Available via: http://www.youtube.com/watch?v=iRzr1QU6K1o.

Class 16: The Future of Money (Thur 9 Apr)

  • Cohen, Benjamin J. The Future of Money. Princeton, N.J.: Princeton University Press, 2004. Ch 1.
  • McNamara, Kathleen R. The Currency of Ideas: Monetary Politics in the European Union. Ithaca: Cornell University Press, 1998. Ch 1; Skim Ch 6.
  • Recommended: Graham Bird, “Where Do We Stand on Choosing Exchange Rate Regimes in Developing and Emerging Economies?,” World Economics, January 2002, pp. 145-167.

Unit 4: Migration

Topic 8: Migration: Pushes, Pulls, and Reactions

Class 17: Theorizing about and Measuring Migration (Tue 14 Apr)

  • 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)

Class 18: Reactions to Migration (Thur 16 Apr)

  • O’Rourke, Kevin H., and Jeffrey G. Williamson. Globalization and History. Ch 10: “Globalization Backlash: Migration Policy Gets Restrictive.” (20 pp)
  • Huntington, Samuel P. “The Hispanic Challenge.” Foreign Policy (2004): 30-45.

Unit 5: Connections

Class 19: Connecting Trade and Money: The Balance of Payments (Tue 21 Apr)

  • Friedman, Milton. “The Case for Flexible Exchange Rates.” In Essays in Positive Economics, 157-203. Chicago: University of Chicago Press, 1953. Parts IV-V.
  • Fleming, J. Marcus. “Mercantilism and Free Trade Today.” In Essays on Economic Policy, 361-81. New York: Columbia University Press, 1978.
  • Irwin, Douglas A. Free Trade under Fire. 2nd ed. Princeton, N.J.: Princeton University Press, 2005. Ch 3: “The Employment Rationale for Protectionism.”

Class 20: Connecting Production and Capital Flows: Remittances and MNCs (Thur 23 Apr)

  • Kapur, Devesh and John McHale, “Migration’s New Payoff,” Foreign Policy (November/December 2003): 49-57.
  • Strange, Susan. “States, Firms and Diplomacy.” (In Frieden & Lake.)
  • Caves, Richard. “The Multinational Enterprise as an Economic Organization.” (In Frieden & Lake.)
  • Fieldhouse, David. “A New Imperial System? The Role of the Multinational Corporation Reconsidered.” (In Frieden & Lake.)

-5:30 PM, 24 April: Essay 2 Due-

Unit6: Special Topics in International Political Economy

Class 21: The Environment (Tue 28 Apr)

Class 22: Concerns about Globalization (Thur 30 Apr)

  • Grieco & Ikenberry, Ch 7: “Economic Globalization and Political Backlash.” (40 pp)
  • Rodrik, Dani. “Trading in Illusions.” Foreign Policy (2001): 55-62.
  • Stiglitz, Joseph E. Globalization and Its Discontents. New York: W.W. Norton, 2003. Ch 1.
  • Kapstein, Ethan B. “Modes of International Economic Justice.” Ethics and International Affairs 75, no. 3 (2004).
  • Recommended: Rodrik, Dani. Has Globalization Gone Too Far? Washington, D.C.: Institute for International Economics, 1997. Ch 1: “Introduction.” (11 pp)

Class 23: In Defense of Globalization (Tue 5 May)

  • Rodrik, “Sense and Nonsense in the Globalization Debate.” (In Frieden & Lake.)
  • 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.
  • J. Bhagwati, “From Seattle to Hong Kong,” Foreign Affairs (December 2005).
  • Williamson, Jeffrey. “Globalization and Inequality, Past and Present.” (In Frieden & Lake.)

Class 24: The Future of IPE (Thur 7 May)

  • Grieco and Ikenberry, Ch 10: “Conclusion.” (10 pp)
  • “Weighing up the WTO,” Economist, 23 November 2002.
  • “Is there any point to the WTO?” Economist, 4 August 2005.
  • [IPE in the Current News.]

-Friday, 8 May, Final Exam Distributed-

-5:30 PM, Wednesday, 13 May: Final Exam Due-

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