Prof Peter Sinclair

Dr Michael Peters, room 32L 1.16

This course is available on the BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Economics and Economic History, BSc in Economics with Economic History, BSc in Government and Economics, BSc in Philosophy and Economics and BSc in Social Policy and Economics. This course is available with permission as an outside option to students on other programmes where regulations permit. This course is available to General Course students.

Students must have completed Macroeconomic Principles (EC210) and Microeconomic Principles I (EC201).

Students should have completed Microeconomic Principles I or II (or equivalent) and Macroeconomic Principles (or equivalent).

The course will concentrate on various important economic policy issues and relevant economic tools. It will treat the issues at a level appropriate for students with the knowledge of economics provided by the courses already taken. In any year the topics covered are likely to include some of the following: (Topics with an * will definitely be covered in 2013-14) i. Globalisation: effects on welfare, development and income distribution. ii. Instruments of trade policy. iii. International negotiations and trade policies iv. Global imbalances v. World trade collapse vi. Tax policies *vii. Monetary policy and exchange rate frameworks *viii. Financial integration and currency unions *ix. Financial crises and relevant policies *x. unemployment and relevant policies xi Social insurance and health insurance xii Competition in health care markets -- theory and empirics xiii An economic perspective on human-induced climate change and policies to combat it

15 hours of lectures and 9 hours of classes in the MT. 15 hours of lectures and 10 hours of classes in the LT. 2 hours of classes in the ST.

Students are urged to attempt the assigned problems before attending classes. At least four pieces of written work will be required.

There is no course textbook. Books that provide useful background reading for the second half of the course, in Lent Term 2014: (a) General books on the European economy / Union and the Eurozone: R. Baldwin, C. Wyplosz The Economics of European Integration, 3e McGraw Hill 2009 P. de Grauwe The Economics of Monetary Union 8e Oxford UP 2009 F. Allen, E. Carletti, G. Corsetti (eds), Life in the Eurozone with or without Sovereign Default, Wharton School, U Penn 2011 (b) Other financial crisis books V. Acharya et al, Guaranteed to Fail Princeton UP 2011 (USA: the mortgages debacle) D. Mayes, R. Pringle, M. Taylor (eds), Towards a New Framework for Financial Stability, Central Banking Publications 2009 (global / analytical) A. Sheng, From Asian to Global Financial Crisis Cambridge UP 2009 (c) Other books J. Gruber Public Finance and Public Policy 3e Worth 2011 P. Krugman and M. Obstfeld International Economics: Theory and Policy 7e Pearson 2010 L. Mahadeva and P. Sinclair How Monetary Policy Works Routledge Taylor and Francis 2005.

Exam (100%, duration: 3 hours) in the main exam period.