October 28, 2019 Chapter 10: Exchange Rates and Exchange Rate Systems
- Chapter 10: Exchange Rates and Exchange Rate Systems
- Introduction: Fixed, Flexible, or In-between
- Exchange Rates and Currency Trading
- Reasons for holding currency
- Interest Rate Arbitrage
- Exchange Rate Risk
- The Supply and Demand for Foreign Exchange
- Supply and Demand with Flexible Exchange Rates
- Appreciation: increase in the price of own currency
- Depreciation: decrease in the price of own currency
- PPP
- Gerber's Chapter 10 PowerPoint Slides
October 30, 2019 Chapter 10: Exchange Rates and Exchange Rate Systems
- Chapter 10: Exchange Rates and Exchange Rate Systems
- Exchange Rates in the Long Run
- PPP
- Exchange Rates in the medium and short run
- The Interest Parity condition
- Largest Market in the World
- The Real Exchange Rate vs. the Nominal Exchange Rate
- Alternatives to Flexible Exchange Rates
- Fixed Exchange Rate Systems
- Crawling Pegs
- Choosing the Right Exchange Rate System
- Single Currency Areas and Optimal Currency Areas
- Gerber's Chapter 10 PowerPoint Slides
October 21, 2019 Review of International Trade
- Review the Exam
- Review of International Trade
- Tariffs and Quotas Worksheet
October 23, 2019 Chapter 9: Trade and the Balance of Payments
- Chapter 9: Trade and the Balance of Payments
- The Current Account
- Trade Balance
- The Current Account
- The Capital Account
- The Financial Account
- The Current Account and the Macroeconomy
- The National Income and Product Accounts
- International Debt
- Gerber's Chapter 9 PowerPoint Slides
October 14, 2019 Chapter 8 - Trade, Labor and Environmental Standards and REVIEW
- Chapter 8 - Trade, Labor and Environmental Standards Chapter 8 PPT
- Income and Standards
- Setting Standards
- Labor Standards: Child Labor for example
- Trade and the Environment
- Deforestation
- Endangered Species
- Global Climate Change
- REVIEW
October 16, 2019 Exam II - Chapters 6 - 8
October 7, 2019 Finish Chapter 6 and Chapter 7 - Commercial Policy and Arguments for Protection
- Read Chapter 6 - Tariffs
- An Export Tariff
- The Optimal Tariff - only in the large country: the DWL
- Effective Rate of Protection (versus nominal rates of protection)
- Quotas - What's an Embargo? A quota of "0"
- VER: A voluntary export restraint
- Non-tariff barriers
- Read Chapter 7 - Commercial Policy and Arguments for Protection Chapter 7 PPT
- Why Nations Protect their industries
- Commerical Policy and Arguments for Protection
- Revenue
- The Labor Argument
- The Infant Industry Argument
- The National Security Argument
- The Cultural Protection Argument
- The Retaliation Argument
- The Politics of Protetion in the U.S.
- Antidumping Duties (ADD)
- Countervailing Duties (CVD)
- Excape Clause Relief
- Section 301 and Special 301
October 9, 2019 NO CLASS: In K.C. at the MVEA Conference presenting a paper
September 30, 2019 Chapter 6 - Tariffs
- Read Chapter 6 - Tariffs Chapter 6 PPT
- Gains from Free Trade
- An Introduction to Tariffs
- Producer and Consumer Surplus
- Pick a country!
October 2, 2019 Chapter 6 - Tariffs continued
- Read Chapter 6 - Tariffs
- Gains from Trade one more time, World Price
- Welfare cost of Tariffs - Dead Weight Loss (DWL)
- World price revisited
- Who Gains and Who loses within a country
- An Export Tariff
- The Optimal Tariff
- Tariff Escalation
- Quotas - What's an Embargo?
- Quotas
- Producer and Consumer Surplus - Gains and losses (the welfare effects of Quotas)
- What are quota rents?
- Equivalence or nonequivalence of tariffs and quotas
September 23, 2019 Review Day
- Review all the material so far!
September 25, 2019 Exam 1, Chapters 1 - 4 Plus
September 16, 2019 Finish Chapter 4: The HO Model, Stolper-Samuelson, Rybzinski Theorem, etc.
- Comparative Advantage
- Review of Theories so far - Attendance Quiz
- Major Points:
- Adam Smith and Mercantislism - the world is positive sum = win-win
- Models:
- Ricardian Concepts: Productivity
- HOS Model: Factor Endowments, that is relative amounts of resources prior to trade
- "Add-ons"
- Stolper-Samuelson
- Factor Price Equalization
- The Rybczynski Theorem