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Econ 102-3: The World Economy

Spring 2010

Prof. Nicolas Schmitt

Classes: M 12:30-14:20 in WMC3520 No class on Monday, Feb 16
Tutorials:  
1) T 15:30-16:20 in WMC3515 2) M 13:30-14:20 in WMC3255; 3) M 13:30-14:20 in WMC3511;

4) W 8:30-9:20 in RCB6125

5) W 9:30-10:20 in AQ4115; 6) T 16:30-17:20 in WMC3513
7) T 15:30-16:20 in WMC3513 8) T 16:30-17:20 in WMC3251  

Office hours: M 13:30-15:00 or by appointment

Office: WMX3669
Email: schmitt@sfu.ca Ph: 778 782- 4582
   
Teaching Assistants:  
Jackie Chang (D101, D102, D104, D108)
Office hours: W: 2:00-3:30pm Office: WMX1611 Email: chiachic@sfu.ca
Additional office hours: Monday, March 1, 3:30-4:30pm  
   
Jessica Courtney (D103, D105, D106, D107)  
Office hours: T: 2:00-3:30pm Office: WMX1611 Email: jcourtne@sfu.ca
Additional office hours: Thursday, March 4, 2:30-3:30pm

 

This course examines the main elements associated with globalization (the integration across borders of the markets in goods, services and factors of production) and with the ongoing economic and financial crisis. We first briefly review the history of globalization and then overview the forces that shape international trade, migrations, foreign direct investments and financial flows. We'll also look at the impact of these forces on growth, inequality and poverty, and consider the implications of globalization on economic policies..

Assessment: There will be one mid-term examination (multiple choices and short questions) worth 30% of the final mark to be held on March 8, 2010 and a final examination (held on April 28, 2010, 12:00-3:00pm) worth 45% of the final mark. If you final exam mark is higher than your mid-term examination mark, the weight of the final is 55% and that of the mid term is 20%. The balance (25%) will be based on a presentation in their tutorial group based on a particular chapter and on a three page write up summarizing the main theme of the text. Assignments of students to chapters in each tutorial will be made during the second week of classes, with presentations begining in mid-semester. Additional details will be provided in your tutorials.

**No Tutorials during the first week of classes**

All students are expected to read and undertand SFU's policy with regard to academic dishonesty (T 10.02 and T 10.03); see http://www.sfu.ca/policies/teaching/t10-02.htm and at http://www.sfu.ca/policies/teaching/t10-03.htm .

Texts and DVD: (All books/DVD are on Reserve at the library).

Epping, Randy Charles, A Beginner’s Guide to the World Economy, Vintage, 3rd edition, 2001.

Commanding Heights: The Battle for the World Economy, PBS, 2002 (see PBS website for more details).

Rubin, Jeff, Why your World is about to get a Whole Lot Smaller, Random House Canada, 2009.

Collier, Paul, The Bottom Billion, Oxford University Press, 2007.

Krugman, Paul, The Return of Depression Economics and the Crisis of 2008, Norton, 2009.

Mankiw, Gregory, Principles of Microeconomics and Principles of Macroeconomics, Thomson Nelson, 2006

Course content: Additional references may be provided during the semester.

1. Introduction and Facts about the Global Economy, Reading: Epping (2001), Introduction and item#5.

2. Markets. Readings: Epping (2001), #13, Mankiw, `Measuring a Nation's Income', `Measuring the Cost of Living'.

3. Supply and Demand. Reading: Mankiw, `The Market Forces of Supply and Demand'

4. World Trade. Reading: Epping (2001), items #4, 20,21,22,52,54,65,66

5. Trade, Wage and Jobs. Reading: Epping (2001), items #4,55,56,57,68. Canada's productivity gap

6. The Monetary and the Financial System. Reading: Epping (2001), items #7, 15, 17, 18, 19, 24, 25, 39, 43, 44, 47. Mankiw, `The Monetary System’.

7. Mid-term examination

8. Guest lecture: Krishna Pendakur on Carbon Taxes and Carbon Treaties in an International Context. Readings: (i) Stiglitz's article; (ii) T. Friedman oped; (iii) Editorial India Times

9. The World Monetary System. Reading: Epping (2001), items #8, 9, 11, 12. Mankiw, `Open Economy Macroeconomics: Basic Concepts’.

10. Global Finance and International Mobility of Capital. Reading: Epping (2001), items #23, 33, 34, 36, 40, 60, 64.

11. (i) Income Distribution and Poverty; and (ii) Oil. Reading: Epping (2001), items #59,60 and Oil Markte Basics at http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/intro.htm