International Political Economy
Read these instructions carefully!
Answer the required question and one question from Section II for a total of two essays. Please note the word limit and provide an accurate word count for each essay.Remember to organize your essays, cite course readings wherever relevant, use illustrative examples, and proofread your work. Do not consult with other students in preparing your answers – direct any questions about the exam to me.
If you include outside readings, make sure that you make proper attribution of ideas or language using any standard style of citation. If you include a direct quote or need to substantiate a position from class readings, it is sufficient to note the author’s name and page numbers in parentheses (e.g., Eichengreen p. 172).
I.Required question (word limit: 1,250 words)
What are the requirements for a stable international monetary order? How were these requirements met during the Classical Gold Standard and Bretton Woods systems? To what extent did the political basis of these systems differ?
(1)How can a governmentbest facilitate upgrading of its national economy? What tools are at its disposal? Use illustrative examples to support your claims.
(2) What were the principle benefits and costs to the US in the use of the dollar as the international reserve currency in the Bretton Woods era? Why did the dollar continue in this role after the demise of Bretton Woods?
(3) What sorts of imbalances were there in the Eurozone before the Euro crisis began? What factors led to the development of these imbalances? What would be the optimal policies to correct them?