Economics 344: Economics of International Finance   Block 5 -- Jan. 19 - Feb. 11, 1998 Individual Papers

 One primary purpose of this course is the application of the theory of international finance to contemporary issues.  Unless this bridge is made, students often fail to see the applicability (and limitations) of theory as a heuristic modeling device for attempting to explain the complexities of events which engulf us.  Thus, a major requirement of this course is a paper which synthesizes what you have learned in class and through assigned readings with a topic related to world monetary systems and international finance reform.
 

 You are to write a paper, approximately twenty pages in length (typed, double-spaced, using standard style and footnote criteria) evaluating the world's historic experience with various types of international monetary systems and recommendations for reform.  You must demonstrate in your paper how the theory you study in this course applies to issues of international monetary systems; keep this in mind in designing your paper.  In the limited space you will have, you cannot BOTH cover ALL institutional and descriptive aspects of calls for various international monetary systems and demonstrate your facility for using the international finance theory we will be studying.  In such a case you should give more emphasis to demonstrating your grasp of the theory; but you must also at least outline the relevant aspects of the international monetary reform debate so as to put it in a current perspective.  Your grade on the paper will depend heavily on your ability to use, and criticize, the theory taught in the course and used in the readings and relate it to the reform topic.

  In preparing yourself for this paper, you should draw upon the assigned readings and class handouts. In addition, you should be sure that you use at least three substantive articles which have appeared in the past 24 months and which you can obtain to help you write this paper.  You are encouraged to use the World Wide Web as a starting point in searching for information on international monetary reform proposals and experience with various exchange rate systems.  Of course, the other more traditional sources of information in Tutt Library should also be consulted.

 Your paper should consist of three parts:
 

 A hypothesis which introduces your paper.  This will be a statement about an international monetary system you recommend that you will support in the remainder of your paper.  The hypothesis should be part of a short introduction to the paper which tells the reader what you intend to do and how you will do it.  Your paper will then be in two parts.

Part A will be a comprehensive overview of the economic theory which pertains to international finance and world monetary systems, as derived from the materials covered in the class and assigned readings portion of class (but supplemented by additional readings you will do for the paper).  This section should demonstrate that you have a grasp of the relevant theory and that you can present such theory in a comprehensive manner which supports the hypothesis you are attempting to prove in your overall paper.

  Part B will present the necessary information about proposals for maintaining and/or replacing the world monetary system to support your hypothesis.  This will include institutional and historic background, quantitative information which places your discussion of options for reform in perspective, and a bridge to the theory covered in Part A.  This part will also draw conclusions, present your recommended reform strategy options, and demonstrate that your paper has indeed supported the hypothesis set forth in the introduction.