ECON 513(S) Development Macroeconomics II

This course is a continuation of Economics 509, further analyzing the relationship between macroeconomic policies and economic growth in developing countries. Building on the analytical model developed in the first semester, this course explores issues of capital mobility, financial liberalization, and exchange rate policy. The first part of the course will analyze the financial sector's role in promoting economic growth and welfare, with topics that focus on financial repression and liberalization, the sequencing of financial reform, and the composition of capital flows. The second part of the course examines appropriate exchange rate frameworks, with topics that include the equilibrium real exchange rate, the choice of regime, exchange rate management, and currency crises in developing countries. Prerequisites: Economics 252, 509. Expected enrollment 25-30. Undergraduate enrollment limited and only accepted with instructor's permission.