1 Syllabus
Course title Global Economy: Emergence and Current Issues Instructor Prof Julius Horvath, Ph.D.
Email horvathj@ceu.edu Office hours by appointment
Credits 2 US credits (4 ECTS credits)
Module
Term Winter 2, 2022-2023 Course level Master’s
Prerequisites No special pre-requisites are required. This course is accessible to anyone with a solid under-graduate background in social sciences and/or
economics.
Course drop
1. COURSE DESCRIPTION
Content The aim of the course is to outline the process leading to the formation of the modern world economy in a broad institutional, and chronological perspective. Special attention will be devoted to the emergence of the world economy especially through developments in western Europe. However, we also discuss the rivalry between Europe, America and Asia. We also discuss the revival in China, which emerged as a new economic world power. During the course except of the dominant framework formulated from the viewpoint of the industrialized countries also perspectives from non-western countries and world regions are discussed. We also discuss financial crisis, development, inequality issues, and the recent impact of Covid-19, inflation and war(s) on the global economy.
2. LEARNING OUTCOMES
Key outcomes. By the end of the course, students will be able to understand the main factors and stages of global economic development. In addition, they will be able to grasp the complexity of historical processes and will understand concepts and issues drawn from the development of global economy. Furthermore, the students will appreciate the constant interplay of economic systems, institutions, and social dimensions in the global economy. By the end of this course, students will demonstrate the ability to analyze the challenges posed to governments by globalization. Also, they will obtain broad perspectives on the development of international monetary system. Students will be expected to understand the macroeconomic fundamentals underlining historical change, along with social context. Students will understand the development of the global economy as an international system, in which at different time periods specific industries, regions and countries have dominant influence. All students will demonstrate the capacity to read simple theory-based arguments.
Other outcomes. The course will also help develop skills in the following areas.
2 Learning Area Learning Outcome
Critical Thinking Students will develop the skills necessary to evaluate sources on global economy and they could effectively evaluate information and its sources critically. Students will attempt to use the essential skills of deductive and inductive argument in analysis and evaluation. Students will also learn to objectively identify problems, gather information from varied sources.
Quantitative Reasoning
Quantitative Reasoning is the ability to efficiently process data, interpret it, typically by using descriptive and analytical statistics.
Students will use logical reasoning, and valid techniques to understand problems related to development of global economy. They will Interpret quantitative data, evaluate quantitative evidence used to support a claim or a position.
Technology Skills Student will be able to communicate information using appropriate tools and digital technology. Student will utilize information and skills appropriate to economic and interdisciplinary studies.
Interpersonal
Communication Skills
Oral and interpersonal communication is the use of language, speech to transmit messages. Students will assess appropriate communication strategies for various audiences in case they present in the class. They should be able to evaluate ethical issues that arise from communicating with others as well as utilize effective oral and interpersonal presentation strategies and methods. Student will also be exposed to an approach which emphasizes the rhetorical qualities of the discipline, which is especially important in evaluating policies and generally in policy discussions.
Management
Knowledge and Skills
Students should be able to manage the knowledge they obtain for the aims they want to achieve. Knowledge and skills obtained in the course also might help in the future when the student decide on topics to work on for their master thesis. In case of writing a paper, student’s work will be evaluated with an eye on applying historical arguments to economic thought. During oral communication, student should develop skills in presentation and connected discussion. In case of a group research paper students were to collaborate in presenting research topics.
Cultural Sensitivity and Diversity
In the course we attempt to present views through the lens of various perspectives. Students will be exposed to influences that shape the diversities in global economic world. They will develop awareness of contemporary issues in the global world and examine multiple perspectives from diverse viewpoints.
Ethics and Social Responsibility
Students will identify ethical issues within current events in global society. They will be encouraged to present own ethical position in relation to problems, norms, or values. Also, they will compare different ethical positions in relation to global problems and controversies. In addition, they will be exposed to professional ethical codes of behavior.
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They should be able to evaluate ethical issues that arise from communicating with others.
3. READING LIST
It will be decided, which readings will be mandatory for the purpose of quizzes and final exam.
In this respect, the list below is tentative, and provides a solid introduction to the variety of topics discussed in this course.
1-2. Introduction: Interdisciplinary Approach to Globalization: Economics, History, Culture Sandel, Michael, "Market Reasoning as Moral Reasoning," Journal of Economic Perspectives,
2013, Fall, 121-140
Easterly, William. "Globalization." The New Palgrave Dictionary of Economics, ed S. Durlauf and L.Blume. Palgrave Macmillan, 2008
Abramitzky, Ran, Economics and the Modern Economic Historian, NBER Working Paper Series, 21636, Oct 2015
Recommended
Acemoglu, Daron, and James A. Robinson, "Economics versus Politics," Journal of Economic Perspectives Vol 27, No 2 Spring 2013, 173–192
Tabellini, Guido, Institutions and Culture, Working Paper n. 330, IGIER, Universita Bocconi, November 2007
Szelenyi, Ivan and Péter Mihályi, The Six Competing Types of Domination in the Early 21st Century: International Political Anthropology journal, (2021) Vol. (14) 2, 175-189 Tabellini, Guido, Culture and Institutions: Economic Development in the Regions of Europe,
Journal of the European Economic Association June 2010 8(4):677–716
Fourcade Marion, Etienne Ollion and Yann Algan, “The Superiority of Economics,” Journal of Economics Perspectives, Vol 29, No 1, 2015, 89-114
3-4 Emergence of Modern Growth: Explosion of Material Wealth; Europe and not Asia. Origins of Modernity: Culture, Institutions, Industrial Revolution. Interwar Period, WWII
Landes, David, “Why Europe and the West and Why not China?” Journal of Economic Perspectives Volume 20, Number 2, Spring 2006, 3–22
Landes, David S., “Why Are We So Rich and They so Poor? Richard T. Ely Lecture, American Economic Review, 1990, May, 1-13
Eichengreen, Barry, “Globalizing Capital. A History of the International Monetary System,”
Princeton University Press, 1996, Chapter Two, The Gold Standard, 7-42 Recommended
Sokoloff, Kenneth L. and Stanley L. Engerman. “History Lessons: Institutions, Factors Endowments, and Paths of Development in the New World.” Journal of Economic Perspectives 2000, 14.3
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Eichengreen, Barry, “Globalizing Capital. A History of the International Monetary System,”
Princeton University Press, 1996, Chapter Three, The Interwar Period, 43-90
Mokyr, Joel, „The Intellectual Origins of Modern Economic Growth,” The Journal of Economic History, Vol. 65, No. 2, June 2005, 285-351
David, Paul, “The Historical Origins of ’Open Science’: An Essay on Patronage, Reputation, and Common Agency Contracting in the Scientific Revolution, Capitalism and Society, Volume 3, Issue 2, 2008 Article 5, 1-33
O’Rourke, Kevin, and Jeffrey G. Williamson, When Did Globalization Begin? European Review of Economic History, 2002, April 6, 1, 23-50, also as NBER WP 7632, April 2000
Reinhart, Carmen M., and Kenneth S. Rogoff This Time is Different: A Panoramic View of Eight Centuries of Financial Crises NBER WP, 2008, 13882
5-6. Global Monetary Developments after World War II: Stability and Crises. Emergence of Euro.
Washington Consensus and Today.
Howitt, Peter and David N. Weil. "Economic Growth" The New Palgrave Dictionary of
Economics, edited by Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008
Spence, Michael, Some Thoughts on the Washington Consensus and Subsequent Global
Development Experience, Journal of Economic Perspectives—Vol 35, 3, 2021, Pages 67–
82
Lane, Philip R., The European Sovereign Debt Crisis, Journal of Economic Perspectives, 2012, Summer, Volume 26, Number 3, 49–68
Recommended
Mishkin, Frederic S., Over the Cliff: From the Subprime to the Global Financial Crisis, Journal of Economic Perspectives, 25, 1, Winter 2011, 49–70
Gorton, G., “The Panic of 2007”, NBER Working Paper, 2008, No. 14358.
de Grauwe, Paul, Economics of Monetary Union, Oxford University Press, 2012, Chapter 1 Posen, Adam S., Why the Euro will Not Rival the Dollar, International Finance, 11:1, 2008, 75-
100
7 Global Economy after World War II: Inequalities within Countries and Inequalities among Countries
Bourguignon, François, Inequality between Nations, The New Palgrave Dictionary of Economics, second edition, Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008
Mankiw, Gregory, Defending the One Percent, Journal of Economic Perspectives, Summer 2013, 21–34
Facundo Alvaredo, Anthony B. Atkinson, Thomas Piketty, and Emmanuel Saez, Top 1 Percent in International and Historical Perspective, Journal Economic Perspectives, Summer 2013, 3–20
Recommended
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Piketty, Thomas, Capital in the Twenty-First Century, the Belknap Press of Harvard University Press, 2014, 1-27, 199-250, 274-281, 571-577
Williamson, Jeffrey, “Winners and Losers Over Two Centuries of Globalization”, NBER Working Paper, 2002, No. 9161
8 Emergence of China as a World Economic Power. China versus USA.
Allison, Graham, Nathalie Kiersznowski, and Charlotte Fitzek, The Great Economic Rivalry: China vs the U.S., Belfer Center for Science and International Affairs, Harvard Kennedy School, March 2022
Justin Yifu Lin, China’s Growth Miracle in the Context of Asian Transformation, Working Paper, New Structural Economics, Peking University, 2018, E201800084, also WIDER WP, 2018/92
Yasheng Huang, How Did China Take Off? Journal of Economic Perspectives, Fall 2012, 147–170
Recommended
Zhang Jun, Why China Continues to Rise, Dec 17, 2021, Project Syndicate
Zhang, Junsen, A Survey on Income Inequality in China, Journal of Economic Literature 2021, 59(4), 1191–1239
Kroeber, Arthur R., China's Economy: What Everyone Needs to Know, Oxford University Press 2020.
Jones, Lee and Shahar Hameiri, Debunking the Myth of ‘Debt-trap Diplomacy’. How Recipient Countries Shape China’s Belt and Road Initiative, Chatham House Research Paper, 2020
9-11 Impact of Covid, Inflation, War and Other Current Issues of the Global Economy Literature for sections 9-11 will be upgraded during the academic year to reflect the developments in the World Economy
Flanagan, Mark, Alfred Kammer, Andrea Pescatori and Martin Stuermer, How a Russian Natural Gas Cutoff Could Weigh on Europe’s Economies, https://blogs.imf.org/2022/07/19/how- a-russian-natural-gas-cutoff-could-weigh-on-europes-economies/
Di Bella, Gabriel Mark J Flanagan, Karim Foda, Svitlana Maslova, Alex Pienkowski, Martin Stuermer, and Frederik G Toscani, Natural Gas in Europe: The Potential Impact of Disruptions to Supply, International Monetary Fund, Working Paper, July 2022.
Sachs, Jeffrey D., Time to Overhaul the Global Financial System; Dec 3, 2021, Project Syndicate Gaspar, Vitor, Paulo Medas, and Roberto Perrelli; Global Debt Reaches a Record $226 Trillion,
December 15, 2021https://blogs.imf.org/
Sánchez-Muñoz, Carlos, Silvia Matei, and Kristy Howell; The World’s Top Recipients of Foreign ,Direct Investment https://blogs.imf.org/2021/12/16/the-worlds-top-recipients-of- foreign-direct-investment/
Obstfeld, Maurice, Anna Gelpern, Yuriy Gorodnichenko, Sean Hagan, Life or Debt in Ukraine, Project Syndicate, April 29, 2022
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Stiglitz, Joseph, On Possible De-Globalization. Shock Therapy for Neoliberals, Project Syndicate April 5, 2022
Morelli, Massimo and Tommaso Sonno, On Economic Interdependence and War, Journal of Economic Literature 2017, 55(3), 1084–1097.
Stanley, Andrew, War Fuels Food Crisis, IMF, Finance and Development, June 2022.
Recommended
Fubini, Federico, When Democracy Gets Old, Dec 8, 2021, Project Syndicate
Cadamuro, Leonardo and Francesco Papadia (2021) ‘Does Money Growth Tell Us Anything about Inflation?’, Working Paper 11/2021, Bruegel
Dabrowski, Marek. (2021) ‘Monetary arithmetic and inflation risk’, Bruegel Blog, 27 September
12 Final Exam or Review of Research Projects 4. TEACHING METHOD AND LEARNING ACTIVITIES
The course will involve a mix of. specifically, learning objectives, which will be achieved through direct lectures, discussions during the lectures, quiz and final paper.
Note we will use the ceulearning.ceu.edu site, and the syllabus on this webpage the student is to follow.
Students will have access to a text in the course using the learning site of the university. Readings will be provided to the students with a small guide to help to focus as the students engage with the text. Understanding of the readings will be addressed in the form of a short quizzes. For certain readings students can be asked to identify the important questions, and also to evaluate the importance of the readings and contrast it to different approaches.
5. ASSESSMENT
Grading will be based on the total score out of 100, in line with CEU’s standard grading guidelines.
Presence in class 10%; Two position papers 25%; Final research project 65%.
Extra credit will be given for constructive classroom discussion.
6. TECHNICAL REQUIREMENTS
There are no special technical requirements.
7. TOPIC OUTLINE AND SCHEDULE
Session Topics
1 Introduction
2 Globalization: How to Interpret It
3 Emergence of Modern Growth: Explosion of Material Wealth;
Europe and not Asia
4 Emergence of Modern Growth: International Monetary System: Gold Standard, Interwar Period
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Emergence of Modern Growth: Its Intellectual Origins, Industrial Revolution
5 Global Economy after World War II: West: Almost Stable Prosperity but Financial, Currency and Other Crises
6 Global Economy after World War II: Washington Consensus, Emergence of Euro
7 Global Economy after World War II: Inequalities within Countries and Inequalities among Countries
8 Emergence of China as a World Economic Power. China versus USA.
9-11 Global Economy after World War II: Covid, Inflation, War(s) and Other Current Issues of the Global Economy
12 Final Exam or Review of Research Projects
8. SHORT BIO OF THE INSTRUCTOR
Julius Horvath is Professor and the former Department Head at CEU Department of Economics and Business, and the former Acting Dean of CEU Business School, and the former Head of the Department of International Relations and European Studies. He is CEU full Professor from 2005 and Hungarian University Professor, Egyetemi Tanár, from 2009. He is a member of Academia Europea from 2016. He is also member of the Council of the European Society of History of Economic Thought. His main interest lies in international economic policy issues, political economy of monetary relations, and history of economic thought. At CEU he teaches courses on Global Economy: Emergence and Issues, History of Economic Thought, International Economic Policy, Political Economy of International Money, Macroeconomics for EMBA, and Principles of Macroeconomics. He has published in journals as Journal of Comparative Economics, Contemporary Economic Policy, Applied Economics, Economic Systems, Journal of Economic Development, Journal of Quantitative Economics, Journal of Economic Integration, Nationalities Papers. He has also published chapters at publishing houses as Palgrave MacMillan, Edgar Elgar, Kluwer Academic, Duncker and Humblot. He was a Member of the Slovak and Czech Accreditation Committees, and the Chair of the Slovak Economic Association. In 2020 he published Introduction to the History of Economic Thought in Central Europe, by Palgrave Macmillan, and in 2022 he published History of Slovak Economic Thought by Routledge.
