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KINT 7585 - International History of Economic Policy

Type d'enseignement : Lecture alone

Semester : Autumn 2017-2018

Number of hours : 24

Language of tuition : English

Voir les plans de cours et bibliographies

Pre-requisite

aucun

Course Description

The course breaks with the standard historical approach to the analysis of economics and economic policy. This allows the course to achieve three aims: (1) make the discussion of economic ideas less abstract, setting them in the context of the real economic problems policy-makers had to face at the time; (2) highlight the interaction of political and economic considerations that policy-makers have to consider; and (3) show how much the relative importance of different economic problems has fluctuated over the decades. The course covers economic policy during four main periods: pre-WWI liberalism; the rise of non-market and anti-market policies in the 1920s, 1930s and during WWII; the post-war Keynesian and Communist stabilisations and their collapse; the new liberal "great moderation" and its collapse. It also covers five main complexes of policy problems which recur over the four historical periods: depression and secular stagnation, private and non-private property regimes, inflations and hyper-inflations, command and war economics, free trade and protectionism.

Teachers

ROSTOWSKI, Jacek (Professeur)

Pedagogical format

Although the course is formally a lecture course, I intend it to be as "interactive" as possible, with students encouraged to ask questions, make comments and discuss what the lecturer has said. I may also ask some students to prepare brief reports on a topic which is important, but subsidiary, to the main line of the lectures.

Course validation

A 3,000-word essay, on a subject to be chosen by each student (50% of total mark); - A 2-hour take-home final exam (50% of total mark).

Required reading

  • Ben S. Bernanke, Essays on the Great Depression, Princeton University Press, 2000
  • Thomas J. Sargent, Rational Expectations and Inflation, Harper and Row, 1986
  • P.J.D. Wiles, The Political Economy of Communism, Harvard University Press, 1962

Plans de cours et bibliographies

L'avant guerre

"Paleoliberalism" and its exceptions: Free trade, balanced budgets and the gold standard under Gladstone, Franz Josef II and the Third Republic.

  • De Cecco, M. "Gold Standard" in The New Palgrave Dictionary: The World of Economics, John Eatwell, M.Milgate and P.Newman, Macmillan (1991).
  • Allen, W.A. "Mercantilism" in The New Palgrave Dictionary: The World of Economics, John Eatwell, M.Milgate and P.Newman, Macmillan (1991).

US populism and Prussian protectionism: the "cross of gold" and the iron cross.

  • Friedman, M. (1990). The Crime of 1873. Journal of Political Economy, 98(6), 1159-1194. Retrieved from http://www.jstor.org/stable/2937754
  • Spiegel, H.W. "National System" in The New Palgrave Dictionary: The World of             Economics, John Eatwell, M.Milgate and P.Newman, Macmillan (1991).

The 20 year Crisis

After the Great War: Four great inflations and how to stop them.

  • Bordo, M. "The Equation of Exchange" in The New Palgrave Dictionary: Money, John Eatwell, M.Milgate and P.Newman, Macmillan (1990)
  • Sargent, T. "The Ends of Four Big Inflations" in Rational Expectations and Inflation  Harper and Rowe (1986).
  • Cagan P. "Hyperinflation" in The New Palgrave Dictionary: The World of Economics,    John Eatwell, M.Milgate and P.Newman, Macmillan (1991).

From Capitalism to Socialism (Part 1: the pioneers): War Communism, the "Scissors Crisis" and the New Economic Policy, the First Five Year Plan and forced industrialisation.

  • Glyn, A. "Marxist Economics" in The New Palgrave Dictionary: The World of Economics, John Eatwell, M.Milgate and P.Newman, Macmillan (1991).
  • Nove, A. An Economic History of the USSR, caps. 3,4, and 8.
  • Wiles, P.J.D. The Political Economy of Communism, Chapter 2, Blackwell.

The socialist calculation debate: Hayek v Lange.

  • Mises, L. "Economic Calculation in the Socialist Commonwealth" (1920) in Socialist Economics, eds. A. Nove and M. Nuti.
  • Lange, O. "On the Economic Theory of Socialism" (1936-7) in Socialist Economics, eds. A. Nove and M. Nuti.
  • Lange, O. "The Computer and the Market" (1967) in Socialist Economics, eds. A. Nove and M. Nuti.

Explaining the Great Depression at the time: Protectionism and the collapse of World Trade, Hayek, Keynes and Fisher.

  • Hingstman, D and G.T. Goodnight "From the Great Depression to the Great Recession:  The 1932 Hayek-Keynes Debate: A Study in Economic Uncertainty, Contingency, and Criticism", Poroi, vol. 7, issue 1 (2011).
  • Fisher, I. "The Debt Deflation Theory of Great Depressions", Econometrica vol.1, no.1, pp 337-357 (1933).
  • Phalan, T. "The Smoot-Hawley Tariff and the Great Depression", Foundation for Economic Education, https://fee.org/articles/the-smoot-hawley-tariff-and-the-great-depression/

Stopping the Great Depression: The methods of Roosevelt, Chamberlain and Hitler.

Ex-post explanations of the Great Depression (Part 1): Friedman and Bernanke.

  • Friedman M. and A. Schwartz A Monetary History of the United States 1867-1960, Princeton University Press, 1960.
  • Bernanke, B. "The Macroeconomics of the Great Depression: a comparative approach" Chapter 1 in Essays on the Great Depression by B. Bernanke, Princeton     University Press, 2000.
  • Eichengreen, B. and D. Irwin (2009) "The protectionist temptation: Lessons from the Great Depression for today", VOX, CEPR's Policy Portal, http://voxeu.org/article/protectionist-temptation-lessons-great-depression-today

Ex-post explanations of the Great Depression (Part 2): Cartelisation and Kindleberger.

  • Ohanian, L. "What - or Who - Started the Great Depression?" NBER Working Paper 15258 (2009), http://www.nber.org/papers/w15258
  • Cole, H. And L. Ohanian, "The Impact of Cartelisation, Money, and Productivity            Shocks on the International Great Depression" NBER Working Paper 18823 http://www.nber.org/papers/w18823
  • Charles Kindleberger, The World in Depression,1929-39, Chapter14, "An Explanation of the 1929 Depression,"(Berkeley: University of California Press,1973),pp. 291-308

The "Total War Economies": Great Britain, Germany, the USA and the USSR. The Success of Post-War military-civilian conversion.

  • Harrison, M. The Economics of World War II, Chapter 1, Cambridge University Press (2000).Eichengreen, B and M. Uzan "The Marshall Plan: Economic Effects and Implications for Eastern Europe and the USSR" in Economic Policy No. 14, pp. 14-75, Cambridge University Press, April 1992.