International Finance and the Emerging Markets (3)
Course Level: Graduate
This course deals with the implications of financial globalization for emerging market countries and specifically with the pros and cons of attracting direct investment and portfolio flows, the peculiarities of global capital movements such as contagion and sudden stop phenomena, the roles of credit rating agencies and the International Monetary Fund (IMF) in facilitating access to international lenders and investors, the importance of currency and maturity mismatches, the effectiveness (or not) of controls on capital flows, and the relationship between capital flows, overindebtedness, and sovereign debt defaults. Usually offered every spring. Prerequisite: SIS-666 or ECON-672 or IBUS-700.