PA 854: Macroeconomic Policy and International Financial Regulation

This site provides resources for students in PA 854 at the University of Wisconsin, Madison for Spring 2012 Semester

Source: Ben Casselman, "Slowing Growth Stirs Recovery Fears," Wall Street Journal, April 28, 2012.

Syllabus | Important Dates | Downloadable Course Materials and Information Sources | Robert M. LaFollette School of Public Affairs | Department of Economics
LECTURE: MW 11-12:15 Education L155

Professor Menzie Chinn
Office Hours: MW 4-5
7418 Social Sciences
Tel: (608) 262-7397
Home Page

Course Syllabus

PA854 Syllabus in PDF file.

This course surveys international macroeconomics, with special reference to international monetary policy and international financial market architecture. Topics include the structure of international financial markets; the role of central banks; exchange-rate systems; the determination of balance of payments and exchange rates; macroeconomics of open economies; policy analysis for open economies; policy coordination; the International Monetary Fund; and financial crises. The aim of this course is to provide an analytical background for those who plan to go into government service, international organizations and agencies, businesses involved in the global economy, nongovernmental organizations with international foci, and consulting firms analyzing international policy issues.

The textbook is Caves, Frankel and Jones, World Trade and Payments 10th Edition, available at the University Bookstore. Additional assigned readings will be available on the Web (via links on this website).

Important Dates

Course Materials and Sources of Economic Information

Downloadable Course Materials

Required Readings

  1. IMF, World Economic Outlook, October 2011 Chapter 1.
  2. White House Council of Economic Advisers, The Economic Report of the President, 2012, Chapter 1.
  3. TriennialCentral Bank Survey Report on global foreign exchange market activity in 2010 (Basel: BIS, December).
  4. M. Chinn, 2004, “Incomes, Exchange rates and the U.S. trade deficit, once again,” International Finance 7(3): 451-469.
  5. M. Pakko and P. Pollard, 2003, “Burgernomics: a big Mac guide to purchasing power parity,” Federal Reserve Bank of St. Louis Review 85(6): 9-28.
  6. K. Herve, 2010, “The OECD's New Global Model,” Economics Department Working Paper No. 368 (Paris: OECD, December).
  7. M. Brunnermeier, forthcoming, “Deciphering the Liquicity and Credit Crunch of 2007-08,” Journal of Economic Perspectives.
  8. M. Chinn, 2006, "The Rehabilitation of Interest Rate Parity in the Floating Rate Era: Longer Horizons, Alternative Expectations, and Emerging Markets," JIMF 25.
  9. M. Hutchison, 2003, “Is official foreign exchange intervention effective,” FRBSF Economic Letter 2003-20 (July 18).
  10. J. Frankel, 2003, “Experience of and lessons from exchange rate regimes in emerging economies,” mimeo (Cambridge: Harvard University, September).
  11. Aizenman, Chinn and Ito, "Assessing the Emerging Global Financial Architecture: Measuring the Trilemma's Configurations over Time," NBER Working Paper No. 14533. [pdf].
  12. "A Faith-based Initiative: Do We Really Know that a Flexible Exchange Rate Regime Facilitates Current Account Adjustment," mimeo [PDF].

News Reports and Additional Optional Readings

News Sources



Economics and Economic Policy Links

International Organizations

U.S. Government Agencies

Current and Historical Data

PA854 Macro Policy & Int'l Financial Regulation / UW Madison / / 30 April 2012