Fall 2012

Financial Globalization, Growth and Crises

Listed in: Economics, as ECON-237

Formerly listed as: ECON-37


Adam D. Honig (Section 01)


This course surveys the recent wave of financial globalization and assesses both its merits and potential risks. In particular, we will examine the most important potential benefit of financial globalization, an increased rate of economic growth that can be a powerful tool in alleviating poverty. We will analyze the theoretical arguments for a growth-enhancing effect of globalization and discuss the empirical evidence. We will then turn to the most important potential drawback: the risk of a devastating financial crisis, particularly in emerging market economies that have only recently opened to international capital movements. Throughout the course we will emphasize the conditions and policies under which financial globalization is likely to be successful. The course will conclude with an analysis of the effect of financial globalization, as well as increased trade openness, on inflation and the conduct of monetary policy.

Requisite: ECON 111/111E.  Limited to 50 students. Consent of the instructor required for students who have taken ECON 435.  Fall semester.  Professor Honig.


2022-23: Not offered
Other years: Offered in Spring 2010, Fall 2010, Fall 2012, Fall 2013, Spring 2016, Spring 2020, Fall 2020, Fall 2023