Economics 361/381
Monetary Theory and Policy: Domestic and International

Most Recent Revision: November 26, 2002

Econ 361/381 Home Page.
Some, but not all, class materials are available on this page.
 

Instructors
Michael K. Salemi, Gardner 301
Office Hours: 1:00-2:00 TWR, and by appt.
Phone: 966-5391 (off), 929-9504 (home)
Email: Michael_Salemi@unc.edu

Patrick Conway, Gardner 300f
Office Hours: 2-3 MTWR
Phone: 966-5376(off), 967-4009 (home)
Email: Patrick_Conway@unc.edu
 

Course Description: Econ 361/381 is the third field course for students whose major field are Monetary Theory, Macroeconomics, and International Economics. The course has two parts. The first is a seminar where important new papers in the field are discussed. The second is a workshop where students present their work. All students pursuing degrees in Money, Macro, and International are required to participate in the Workshop portion of the course starting with their third year in the program and continuing until they receive their degrees.
 

Course Syllabus
 

August 27, 2002
"Six Major Puzzles in International Macroeconomics: Is there a Common Cause?" Obstfeld/Rogoff   http://www.economics.harvard.edu/~krogoff//NBER2000.htm.

"Domestic Saving and International Capital Flows", Feldstein/Horioka, Economic Journal, 1980,   http://www.jstor.org/
 

September 3, 2002
Christiano, Eichenbaum, and Evans, "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy," Working Paper, May 2001, http://faculty.econ.nwu.edu/faculty/christiano/research.htm

Altig, Christiano, Eichenbaum, and Linde, "Technology Shocks and Aggregate Fluctuations (Preliminary and Incomplete)," June 30, 2002,  pdf version.
 

September 10, 2002
Svennson, L.,  “Trade in Risky Assets,” American Economic Review 78/3, May 1988, pp. 375-394.

Ong, L., K. Clements and H. Izan, “AThe World Real Interest Rate: Stochastic Index Number Perspectives”,
Journal  of International Money and Finance 18/2, 1999, pp. 225-249.

Lewis, K., “International Home Bias in International Finance and Business Cycles,” NBER Working Paper 6351, January 1998.  (Especially part II, beginning p. 28.)
 

September 17, 2002:    I have decided to combine topics from Sections 4 and 5 of the syllabus.  The readings are:

Kalman Filter
James D. Hamilton, Time Series Analysis, Princeton University Press, 1994, Chapter 13, pp. 372-408.
Salemi, Michael K., “Estimating the Natural Rate of Unemployment and Testing the Natural Rate Hypothesis,” Journal of Applied Econometrics, Volume 14, 1999, 1-25. pdf

GMM
Hamilton, Ibid, Chapter 4, pp. 409-434.
Lucas, Robert E., Jr., "Asset Prices in an Exchange Economy," Econometrica, 1978, 1429-46     http://www.jstor.org/
 
 

September 24, 2002:  Joseph Polka will lead discussion on the following two papers.

Anthony J Venables et al., "The Economic Geography of Trade, Production, and Income: A Survey of Empirics"  http://econ.lse.ac.uk/staff/ajv/hosrtv.pdf

Paul Krugman, "Increasing Returns and Economic Geography" Journal of Politcal Economy, Volume 99, Issue 3 (June 1991) 483-499  http://www.jstor.org/
 

October 1, 2002:  Sahminan will lead discussion on the following two papers.

Maurice Obstfeld, "Exchange Rates and Adjustment: Perspectives from the New Open Economy Macroeconomics," http://elsa.berkeley.edu/~obstfeld/index.html

Jonathan McCarthy, "Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies," http://www.newyorkfed.org/rmaghome/staff_rp/sr111.html
 

October 8, 2002:  Robert Connolly will lead discussion on the following papers.

"Emerging Equity Markets and Economic Development," Journal of Development Economics, 66 (December 2001), 465-504
   http://www.elsevier.com/homepage/sae/econworld/econbase/devec/frame.htm   ( Click on the individual title to get the paper.)

 "Does Financial Liberalization Spur Growth" - working paper
  http://faculty.fuqua.duke.edu/~charvey/Research/Working_Papers/W56_Does_financial_liberalization.pdf

  "Growth Volatility and Equity Market Liberalization" - working paper
   http://faculty.fuqua.duke.edu/~charvey/Research/Working_Papers/W60_Growth_volatility_and.pdf

  "Research in Emerging Markets Finance: Looking to the Future"  - identifies some interesting topics for further research
    http://faculty.fuqua.duke.edu/~charvey/Research/Working_Papers/W64_Research_in_emerging.pdf
 

October 15, 2002:  Heather Popielski will lead discussion on the following papers.

  Rodney D. Ludema "Optimal international trade agreements and dispute settlement procedures," European Journal of Political Economy,
  Volume 17, Issue 2, June 2001, Pages 355-376   pdf

  Rodney D. Ludema "Increasing returns, multinationals and geography of  preferential trade agreements," Journal of International Economics,
  Volume 56, Issue 2, March 2002, Pages 329-358  pdf
 

October 22, 2002:  Catalin Stefanescu will lead discussion on the following paper.

  Guido Ascari, "Price/Wage Staggering and Persistence: a Unifying Framework", forthcoming in The Journal of Economic Surveys, 2001
  http://economia.unipv.it/pagp/pagine_personali/gascari/jesurveys2.pdf
 
 

November 12, 2002:  Gregory Givens will lead discussion of the following paper.

Laurence Ball, "Policy Rules for Open Economices," NBER Working Paper Series, No. 6760, pdf
 
 

November 19, 2002: Rouben Atoian will lead discussion of the following paper.

Nicoletta Batini, Richard Harrison, and Stephen P. Millard, "Monetary Policy Rules for an Open Economy," Bank of England Working Paper, pdf
 
 

December 3, 2002:  For our last Tuesday meeting, Chi-Hung Liao will lead discussion of two papers.

Smarzynska, Beata K, Shang-Jun Wei, "Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth." NBER Working Paper 8465,
http://papers.nber.org/papers/w8465.pdf

Copeland, Brian R., M. Scott Taylor, "Trade and Transboundary Pollution." The American Economic Review, Vol. 85, Issue 4 (Sep., 1995), 716-737,
www.jstor.org