ECON 516T(S) Developing Countries and the International Capital Markets

This course will cover the pros and the cons of gaining access to the international capital markets, especially on the part of companies and governments in developing and transition countries. Topics to be covered include the advantages and disadvantages of attracting portfolio and direct investment flows; the roles of the IMF, credit rating agencies, and commercial and investment banks in facilitating access to international lenders and investors; the determinants and peculiarities of global capital movements, including the phenomenon called "sudden stop"; the role of prudential and other regulations, including controls on capital flows; and the advisable levels of domestic and external indebtedness. Format: tutorial meetings in groups of 2. Requirement: one paper every other week, for a total of 5 papers. Prerequisites: Economics 509. Enrollment limit: 10 (expected:10). Undergraduate enrollment limited and only accepted with instructor's permission.