Political Economy of Globalization

PSCI 5320

Spring 1998

Instructor: David A. Leblang; Wooten 145; x3231;

Course Outline

January 20First day of class; overview; assignments; etc.

January 27Overview of the Issues

  • Milner, Helen and Robert Keohane. (1996). “Internationalization and Domestic Politics: An Introduction,” in Keohane and Milner (eds.).
  • Frieden, Jeffry and Ronald Rogowski. (1996). “The Impact of the International Economy on National Policies: An Analytical Overview,” in Keohane and Milner (eds.).
  • Cohen, Benjamin. 1996. “Phoenix Risen: The Resurrection of Global Finance,” World Politics 48:268-96.
  • Andrews, David and Thomas Willett. 1997. “Financial Interdependence and the State: International Monetary Relations at Century’s End,” International Organization 51:479-511.

February 3Dependency, Interdependence and State Power

  • Palma, Gabriel. 1978. “Dependency: A Formal Theory of Underdevelopment or a Methodology for the Analysis of Concrete Situations of Underdevelopment,” World Development 6:886-924.
  • Dos Santos, Theotonio. 1970. “The Structure of Dependence,” American Economic Review 60:235-46.
  • Katzenstein, Peter. 1976. “International Relations and Domestic Political Structures: Foreign Economic Policies of Advanced Industrial States,” International Organization 30:1-45.
  • Gourevitch, Peter. 1978. “The Second Image Reversed: The International Sources of Domestic Politics.” International Organization 32:881-912.
  • Baldwin, David. 1980. “Interdependence and Power: A Conceptual Analysis.” International Organization 34:471-506.
  • Keohane, Robert and Joseph Nye. 1987. “Power and Interdependence Revisited.” International Organization 41:725-53.

February 10Globalization and Partisanship in Advanced Economies

  • Garrett, Geoffrey and Peter Lange. 1986. “Performance in a Hostile World: Economic Growth in Capitalist Democracies, 1974-1980.” World Politics 38:517-45.
  • Garrett, Geoffrey and Peter Lange. 1991. “Political Responses to Interdependence: What’s ‘Left’ for the Left?” International Organization 45:539-64
  • Garrett, Geoffrey. 1995. “Capital Mobility, Trade, and the Domestic Politics of Economic Policy,” in Keohane and Milner (eds.).
  • Lindert, Peter. 1994. “The Rise of Social Spending, 1880-1930.” Explorations in Economic History 31:1-37.

February 17Open Economy Politics 1: Specific Factors

  • Alt, J., J. Frieden, M. Gilligan, and R. Rogowski. 1996. “The Political Economy of International Trade: Enduring Puzzles and an Agenda for Inquiry.” Comparative Political Studies.
  • Rogowski, Ronald. 1987. “Trade and the Variety of Democratic Institutions.” International Organization 41:203-223.
  • Rogowski, Ronald. 1989. Commerce and Coalitions: How Trade Affects Domestic Political Alignments. Princeton: Princeton University Press. (Chapters 1,3,4,6).

February 24Open Economy Politics 2: Sectoral Politics

  • Alt and Gilligan (cite in Alt, et al).
  • Bates, Robert. 1997. Open Economy Politics. Princeton: Princeton University Press. (Chapter 1).
  • Frieden, Jeffry. 1991. Debt, Development and Democracy: Modern Political Economy and Latin America, 1965-1985. Princeton: Princeton University Press. (Chapters 1,2,3,7,8).

March 3Bretton Woods and the Globalization of Finance

  • Helleiner, Eric. 1994. States and the Reemergence of Global Finance: From Bretton Woods to the 1990s. Ithaca: Cornell University Press. (Chapters 1-3).
  • Eichengreen, Barry and Peter Kenen. 1994. “Managing the World Economy under the Bretton Woods System: An Overview,” in Peter Kenen (ed.). Managing the World Economy: Fifty Years after Bretton Woods. Washington, D.C.: Institute for International Economics.
  • Obstfeld, Maurice and Alan Taylor. 1997. “The Great Depression as a Watershed: International Capital Mobility over the Long Run.” Working Paper Series no. 5960, National Bureau of Economic Research (March).

March 10Euromarkets and Global Banking

  • Helleiner, Eric. 1994. Chapter 4
  • Kapstein, Ethan. 1994. Governing the Global Economy: International Finance and the State. Cambridge, MA: Harvard University Press.

March 24International Capital Markets

  • Sobel, Andrew. 1998. National Political Institutions, Policies and Global Capital Markets. Ann Arbor, MI: University of Michigan Press. (chapters to be assigned).
  • Helleiner, Eric. 1994. Chapter 6
  • Fishlow, Albert. 1985. “Lessons from the Past: Capital Markets During the 19th Century and the Interwar Period,” International Organization 39:383-439.
  • Marston, Richard. 1993. “Interest Differentials under Bretton Woods and the Post-Bretton Woods Float: the Effects of Capital Controls and Exchange Risk” (with discussion), in Michael Bordo and Barry Eichengreen (eds.), A Retrospective on the Bretton Woods System. Chicago: University of Chicago Press.

March 31Capital Controls and Liberalization

  • Helleiner, Eric. 1994. Chapter 7.
  • Goodman, John B. and Louis W. Pauly. 1993. “The Obsolescence of Capital Controls? Economic Management in an Age of Global Markets.” World Politics 46:50-82.
  • Quinn, Dennis P. and Carla Inclan. 1996. “Liberalizing Capital: A Twenty-One Country Study of International Financial Regulation, 1950-1988. American Journal of Political Science.
  • Alesina, Alberto, Vittorio Grilli, and Gian Maria Milesi-Ferretti. 1994. “The Political Economy of Capital Controls.” in Leonardo Leiderman and Assaf Razin (eds.) Capital Mobility: The Impact on Consumption, Investment, and Growth. Cambridge University Press.
  • Leblang, David. 1997. “Are Capital Controls Obsolete? Evidence from the Developed and Developing World, 1967-1986.” International Studies Quarterly.

April 7Domestic Politics, Institutions and Exchange Rate Policy

  • Eichengreen, Barry. 1993. Golden Fetters: The Gold Standard and the Great Depression. New York: Oxford University Press. (chapters to be assigned).
  • Simmons, Beth. 1994. Who Adjusts? Domestic Sources of Foreign Economic Policy During the Interwar Years. Princeton: Princeton University Press. (chapters to be assigned).
  • Frieden, Jeffry. 1993. “The Dynamics of International Monetary Systems: International and Domestic Factors in the Rise, Reign, and Demise of the Classical Gold Standard,” in Robert Jervis and Jack Snyder (eds.). Coping with Complexity in the International System. Boulder, CO: Westview Press.
  • Frieden, Jeffry. 1994. “Exchange Rate Politics: Contemporary Lessons from American History,” Review of International Political Economy 1:81-103.
  • Frieden, Jeffry. 1997. “Monetary Populism in Nineteenth-Century America: An Open Economy Interpretation.” Journal of Economic History 57:367-395.

April 14Exchange Rate Regimes, the EMS and Crises

  • Eichengreen, Barry and Jeffry Frieden. 1994. “The Political Economy of European Monetary Unification: An Analytical Introduction,” in Barry Eichengreen and Jeffry Frieden (eds.). The Political Economy of European Monetary Integration. Boulder, CO: Westview Press.
  • Bernhard, William and David Leblang. 1997. “Domestic Political Institutions and Exchange Rate Commitments.” Unpublished manuscript.
  • Bordo, Michael and Anna Schwartz. 1996. “Why Clashes between Internal and External Stability Goals End in Currency Crises, 1794-1994. Working paper series no. 5710, National Bureau of Economic Research (August).
  • Obstfeld, Maurice. 1995. “International Currency Experience: New Lessons and Lessons Relearned,” Brookings Papers on Economic Activity 1:1995.

April 21Globalization and Developing Economies

  • Frieden, Jeffry. 1991. “Invested Interests: The Politics of National Economic Policies in a World of Global Finance,” International Organization 45:425-451.
  • Edwards, Sebastian and Julio Santaella. 1993. “Devaluation Controversies in the Developing Countries: Lessons from the Bretton Woods Era,” (with discussion), in Michael Bordo and Barry Eichengreen (eds.), A Retrospective on the Bretton Woods System. Chicago: University of Chicago Press.
  • Haggard, Stephan and Sylvia Maxfield. 1995. “The Political Economy of Financial Internationalization in the Developing World,” in Keohane and Milner.
  • Papers by Leblang, Bernhard and Jones and by Frieden.

April 28Political Economy of Exchange Rate Volatility

  • Meese, Richard. 1990. “Currency Fluctuations in the Post-Bretton Woods Era,” Journal of Economic Perspectives 4:117-34.
  • Freeman, John. 1997. “The Politics of International Finance: A Pilot Study,” Paper presented at the Annual Meeting of the Midwest Political Science Association, Chicago, IL.
  • Leblang, David. 1997. “Riding the Crest, Setting a Storm Anchor, or Seeking Safe Harbor: Unanticipated Political Change and Exchange Rate Variability,” Paper presented at the Annual Meeting of the American Political Science Association, Washington, D.C.
  • Bachman, Daniel. 1992. “The Effect of Political Risk on the Forward Exchange Bias: the Case of Elections,” Journal of International Money and Finance 11:208-19.
  • Blomberg, S. Brock and Gregory Hess. 1996. “Politics and Exchange Rate Forecasts,” Research Working Paper no. 96-02, Federal Reserve Bank of Kansas City.

May 5What does it Mean? Globalization and Democracy

  • Evans, Peter. 1997. “The Eclipse of the State? Reflections on Stateness in an Era of Globalization,” World Politics 50:62-87.
  • Cable, Vincent. 1995. “The Diminished Nation-State: A Study in the Loss of Economic Power,” Daedalus 124:23-53.
  • Ruggie, John Gerard. 1994. “At Home Abroad, Abroad at Home: International Liberalisation and Domestic Stability in the New World Economy,” Millennium: Journal of International Studies 24:507-26.