Master of Science in International and Monetary Economics

Suggested Books

Obstfeld, Maurice and Kenneth Rogoff [1996], “Foundations of International Macroeconomics,” MIT Press.

Topics and Selected Reading List

1) Intertemporal Approach to the Current Account

*Obstfeld Maurice and Kenneth Rogoff [1996], “Foundations of International Macroeconomics,” chapters 1-3.
Obstfeld, Maurice and Kenneth Rogoff [1995], “The Intertemporal Approach to the Current Account,” in G. Grossman and K. Rogoff, eds., Handbook of International Economics, vol.3, North Holland.
Sachs, Jeffrey [1982], “The Current Account in the Macroeconomic Adjustment Process,” Scandinavian Journal of Economics, vol. 84, pp. 147-159.

2) Asset Markets and Risk Sharing

*Ljungqvist, Lars and Thomas Sargent [2004], “Recursive Macroeconomic Theory,” chapters 8 and 17.
*Obstfeld, Maurice and K. Rogoff [1996], “Foundations of International Macroeconomics,” chapter 5.
Aiyagari, Rao [1994], “Uninsured Idionsyncratic Risk and Aggregate Saving,” Quarterly Journal of Economics, 659-684.
Clarida, Richard H. [1990] “International Lending and Borrowing in a Stochastic, Stationary Equilibrium,” International Economic Review, XXXI, 543-558.Schmitt-Grohe, Stefanie and Martin Uribe [2003], “Closing Small Open Economy Models,” Journal of International Economics, 61, 163-185.
Svensson, Lars E.O. [1988], “Trade in Risky Assets,” American Economic Review, 8, p. 375-394.

3) Purchasing Power Parity and The Law of One Price: Empirical Evidence

*Engel, Charles [1999], “Accounting of U.S. Real Exchange Rate Changes, ” Journal of Political Economy, 107(3), 507-38.
*Rogoff, Kenneth [1996], “The Purchasing Power Parity Puzzle,” Journal of Economic Literature, Vol. 34, No. 2., pp. 647-668.
Campa José and Linda Goldberg [2002], “Exchange Rate Pass-Through into Import Prices: A Macro or Micro Phenomenon,”
http://www.ny.frb.org/rmaghome/economist/goldberg/pubs.html.
Engel, C. and John Rogers [1996], “How Wide is the Border?”, American Economic Review, Vol. 86, No. 5. pp. 1112-1125.
Froot, K. and K. Rogoff [1995], “Perspectives on PPP and Long-Run Real Exchange Rates,” in Handbook of International Economics vol. 3, Gene Grossman and Kenneth Rogoff (eds.), (Amsterdam: Elsevier Science Publishers B.V., 1995): 1647-88.
Goldberg, Pinelopi and M. Knetter [1997], “Goods Prices and Exchange Rate Changes: What Have We Learned?” Journal of Economic Literature, Vol. 35, No. 3, pp. 1243-1272.
Gopinath, Gita and Oleg Itskhoki (2009), “Frequency of Price Adjustment and Pass-through” Quarterly Journal of Economics , forthcoming.
Gopinath, Gita, Oleg Itskhoki and Roberto Rigobon (2009), “Currency Choice and Exchange Rate Pass-through” American Economic Review, forthcoming.
Knetter, M. [1993], “International Comparisons of Pricing-to Market Behavior”, American Economic Review, 83, 3, pp. 473-86.
Parsley, D. and W. Shang-Jin [2001], “Explaining the Border Effect: The Role of Exchange Rate Variability, Shipping Costs and Geography,” Journal of International Economics, Volume 55, Issue 1, pp. 87-105.

4) Pattern of Trade, Non-traded Goods and PPP Deviations

*Obstfeld Maurice and K. Rogoff [1996], “Foundations of International Macroeconomics,” chapter 4.
Bergin, Paul and Reuven Glick [2003], “Endogenous Nontradability and Macroeconomic Implications,” unpublished manuscript, UC at Davis.
Bergin Paul, Reuven Glick and Alan M. Taylor [2004] “Productivity, Tradability, and the Long-Run Price Puzzle,” Federal Reserve Bank of San Francisco Working Paper 2004-08.
Dornbusch, Rudiger, S. Fisher, and P. A. Samuelson [1977], “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods,” American Economic Review, vol. 67, No. 5, p. 823.
Ghironi Fabio and Marc Melitz [2005], “International Trade and Macroeconomic Dynamics with Heterogenous Firms,” Quarterly Journal of Economics, 120.

5) Models of Pricing-to-Market and Imperfect Pass-Through

*Dornbusch, Rudiger [1987], “Exchange Rates and Prices,” American Economic Review, Vol. 77, No. 1, pp. 93-106.
Atkeson, Andrew and Ariel Burstein [2005], “Trade Costs, Pricing to Market, and International Relative Prices,” unpublished manuscript, UCLA.
Burstein, Ariel, Joao Neves and Sergio Rebelo [2003], “Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate Based Stabilizations, ” Journal of Monetary Economics, Volume 50, Issue 6, pp. 1189-1214.
Burstein, Ariel, Eichenbaum Martin and Sergio Rebelo [2004], “Modeling Exchange Rate Passthrough After Large Devaluations,” Journal of Monetary Economics, forthcoming.
Corsetti, Giancarlo and Luca Dedola [2005], “The Macroeconomics of International Price Discrimination,” Journal of International Economics, Volume 67, Issue 1, pp. 129-155.
Krugman, Paul [1986], “Pricing to Market when the Exchange Rate Changes”, NBER WP No. 1926. Also in S. Arndt and J.D. Richardson (eds.) Real-Financial Linkages among Open Economies. Cambridge, Mass. MIT Press (1993).
Obstfeld, Maurice [2002], “Exchange Rates and Adjustment: Perspectives from the New Open Economy Macroeconomics, “http://elsa.berkeley.edu/~obstfeld/

6) Exchange Rate Determination in an Optimizing Flexible-Price Model

*Benigno, Pierpaolo and Gianluca Benigno (2008), “Exchange Rate Determination under Interest Rate Rules,” Journal of International Money and Finance, Volume 27, Issue 6, Pages 971-993.
*Obstfeld Maurice and K. Rogoff [1996], “Foundations of International Macroeconomics,” pp.530-556.
Lucas, Robert [1982], “Interest Rates and Currency Prices in a Two-Country World,” Journal of Monetary Economics, Volume 10, Issue 3, pp. 335-359.
Svensson, Lars E.O. [1989], “Trade in Nominal Assets: Monetary Policy and Price Level and Exchange Risk,” Journal of International Economics, 26 (1/2) pp. 1-28.

7) Exchange Rate Determination and Fiscal Policy

*Daniel, Betty [2001], “A Fiscal Theory of Currency Crises,” International Economic Review, 42 (4), 969-988.
*Krugman, Paul [1979], “A Model of Balance-of-Payments Crises,” Journal of Money, Credit and Banking, Vol. 11, No. 3, pp. 311-325.
Burnside, Craig, Martin Eichenbaum and Sergio Rebelo [2003], “Government Finance in the Wake of Currency Crises,” NBER working paper No. 9786.
Dupor, Bill [2000], “Exchange Rate and the Fiscal Theory of the Price Level,” Journal of Monetary Economics, pp. 613-630.
Loyo, Eduardo [1997], “Going International with the Fiscal Theory of the Price Level,” unpublished manuscript, Harvard Kennedy School.

8) Optimizing Models with Nominal Rigidities

*Benigno, Pierpaolo and Gianluca Benigno (2008), “Exchange Rate Determination under Interest Rate Rules,” Journal of International Money and Finance, Volume 27, Issue 6, Pages 971-993.
*Obstfeld, Maurice and K. Rogoff [2000], ” New Direction For Stochastic Open Economy Models,” Journal of International Economics, 50, pp. 117-154.
Arsenau, David [2003] “Optimal Inflation in an Open Economy,” unpublished manuscript, Federal Reserve Board of Governors.
Benigno, Pierpaolo [2004], “Optimal Monetary Policy in a Currency Area”, Journal of International Economics,Volume 63, Issue 2, Pages 293-320.
Clarida, Richard, Jordi Galí and Mark Gertler [2001], “Optimal Monetary Policy in Open Versus Closed Economies: An Integrated Approach,” American Economic Review, Papers and Proceedings p. 248-252.
Gali, Jordi and Tommaso Monacelli [2005], “Monetary Policy and Exchange Rate Variability in a Small Open Economy,” Review of Economic Studies, Volume 72, Number 3.
Svensson, Lars [2000], “Open-Economy Inflation Targeting,” Journal of International Economics 50: 155-183.

9) Optimal Monetary Policy In Open Economies

*Benigno, Gianluca and Pierpaolo Benigno [2003], “Price Stability in Open Economies,” Review of Economic Studies, Vol. 70(4) pp. 743-764.
*Benigno, Gianluca and Pierpaolo Benigno [2000], “Designing Targeting Rules for International Monetary Policy Cooperation,” Journal of Monetary Economics, 53(3): 473-506.
*Corsetti, Giancarlo and Paolo Pesenti [2005], “The Simple Geometry of Transmission and Stabilization in Closed and Open Economy,” NBER Working Paper No. 11341.
*Corsetti, Giancarlo, Luca Dedola and Sylvain Leduc (2009), “International Dimension of Monetary Policy: A Re-Appraisal and New Directions,” Handbook of Monetary Economics forthcoming.
*Devereux, Michael and Charles Engel [2000], “Monetary Policy in the Open Economy Revisited: Price Setting and Exchange Rate Flexibility,” Review of Economic Studies, Vol. 70(4) pp. 765-784.
*Obstfeld, Maurice and K. Rogoff [2000], “Global Implications of Self-Oriented National Monetary Rules,” Quarterly Journal of Economics 117, May 2002, 503-36.
Benigno, Pierpaolo [2009], “Price Stability with Imperfect Financial Integration,” Journal of Money, Credit and Banking, Volume 41 Issue s1, Pages 121 - 149.
Canzoneri,Matthew, Cumby, Robert and Behzad Diba [2002], “The Need for International Policy Coordination: What’s Old, What’s New, What’s Yet to Come?,” Journal of International Economics, Vol. 66, Issue 2, pp. 363-384
Clarida, Richard, Jordi Galí and Mark Gertler [2001], “A Simple Framework for International Monetary Policy Analysis,” Journal of Monetary Economics, Vol. 49, Issue 5, pp. 879-904.
Corsetti, Giancarlo and Paolo Pesenti [2005], “International Dimensions of Optimal Monetary Policy,” Journal of Monetary Economics, Vol. 52, Issue 2, pp. 281-305.
De Paoli, Bianca [2004], “Monetary Policy and Welfare in a Small Open Economy,” unpublished manuscript, London School of Economics.
Sutherland, Alan [2002], “International Monetary Policy Coordination and Financial Market Integration” http://www.st-and.ac.uk/~ajs10/home.html

10) Globalization and Inflation Dynamic

*Benigno Pierpaolo and Ester Faia [2010], “Globalization, Pass-Through and Inflation Dynamic,” unpublished manuscript.
Guerrieri, Luca, Christopher Gust, David López-Salido, [2007], “International Competition and Inflation: A New Keynesian Perspective,” unpublished manuscript.
*Sbordone, Argia, [2007], “Globalization and Inflation Dynamics: The Impact of Increased Competition,” NBER Working Paper 13556.
*Woodford Michael, [2007], “Globalization and Monetary Control,”.unpublished manuscript, Columbia University.

11) Portfolio Models

*Benigno, Pieerpaolo and Salvatore Nistico [2009], “International Portfolio Allocation under Model Uncertainty,” unpublished manuscript.
*Coeurdacier, Nicolas and Pierre-Olivier Gourinchas [2008], “When Bonds Matter: Home Bias in Goods and Assets,” unpublished manuscript.
*Devereux, Michael and Alan Sutherland [2006] “Country portfolio dynamics,” Journal of the European Economics Association, forthcoming.
*Engel, Charles and Akito Matsumoto [2006], “Portfolio Choice in a Monetary Open-Economy DSGE Model,” NBER Working Paper No. 12214.
*Obstfeld Maurice and Kenneth Rogoff [1996], “Foundations of International Macroeconomics,” chapter 5.
Kollman, Robert [2006], “International Portfolio Equilibrium and the Current Account,” unpublished manuscript, University of Paris XII.
Tille, Cedric and Eric van Wincoop [2007], “International Capital Flows,” Federal Reserve Bank of New York.