ECON 115

WORLD ECONOMY IN THE 20

TH
CENTURY
SYLLABUS

PROFESSOR: Calanit Kamala LECTURES: Tue/Thu 9:30 11, 277 Cory
OFFICE: 677 Evans OFFICE HOURS: Wednesdays 11-12
E-MAIL: calanit@berkeley.edu
CLASS WEB-SITE: https://bcourses.berkeley.edu/courses/1197123

COURSE DESCRIPTION:
This course is a historical survey of the emergence of an integrated world economy in the 20
th
century. It
provides historical perspectives of major economic events such The Great Depression, The establishment of
Global Financial Institutions, etc. We will review and discuss modern patterns of trade, globalization,
development and growth. The course will require basic understanding of (mostly) Macroeconomics and
(some) Microeconomics.
As part of Berkeley's Undergraduate Student Learning Initiative (USLI), the Economics Department has developed
learning goals for the Economics major. See http://emlab.berkeley.edu/econ/ugrad/ugrad_goals.shtml. The specific
learning goals which this course aims to achieve are as follows. CT1: Understand everyday economics problems CT3:
Compare arguments QT4: Obtain or collect data PS2: Propose solutions to problems without clear solutions CS1:
Communicate effectively about economic issues LL3: Understand economic news.
ENROLLEMT:
Please direct ALL enrollment questions to the head GSI, Alisa Tazhitdinova: headgsi@econ.berkeley.edu.
(Including instructor approval requests.) Her office is 508-2 Evans.
PREREQUISITES:
The prerequisites are: ECON 100A & ECON 100B or equivalent.
REQUIRED MATERIAL:
Main Textbook: Globalizing Capital, A history of the international monetary system, by Barry Eichengreen,
1999 ($15 on-line with shipping).
Additional readings will be assigned weekly and will be available on-line.

LECTURES:
Lecture slides will be posted at the end of the week. Lectures with slides capture will be available on
webcast.berkeley.edu
If you use your electronic device for anything else but taking notes or viewing slides, you will be asked to
leave class.

GSIs:
Molly Starke: e-mail: molly.starke@berkeley.edu; Office hours: Tu/Th 5-6, 542 Evans
Sergii Meleshchuk: e-mail: meleshchuk@berkeley.edu; Office hours: TBA

E-MAIL POLICY:
I always prefer to talk to you in person, so please approach me before or after class or come to office hours.
Any e-mails requesting clarifications of the material should first be directed at your GSI. If you still need to e-
mail me, I will get back to you within 48 hours.


GRADING POLICIES AND SCHEDULE:

Assignment Total assigned Percent value Due Dates Comments
Problem sets 3 problem sets 5%*3 = 15% 2/11; 3/6; 4/15 NO LATE PS!!!
Attendance Taken in section 10% 10 sections = full
credit
Midterms 2 2*22.5% = 50% 2/18; 3/20 NO MAKE-UP
EXAMS!!!
Cumulative Final 1 30% 05/14 @ 11:30 AM Excused no show
= Incomplete
No excuse = 0
points on final

Re-grading: all regarding requests must be handed to me (unless a summation error) within a week of
received work and with a write-up detailing your request. I reserve the right to re-grade all of your work if a
re-grade is submitted.

ACADEMIC HONESTY:
This class will be conducted in strict observance of the Universitys Academic Honesty Code without
compromise or exception (http://uga.berkeley.edu/sas/rtf/guide_student.rtf). The use of any outside
materials during exams is strictly prohibited. Cheating in an exam will result in a failing grade and a report to
the Center for Student Conduct.
The student community at UC Berkeley has adopted the following Honor Code: "As a member of the UC
Berkeley community, I act with honesty, integrity, and respect for others." The hope and expectation is that
you will adhere to this code.

SUPPORT:
Feel free to approach me about anything that is affecting your learning, your academic success, or your
happiness. If you need other support, here are some useful links to on-campus resources:
Econ Department tutoring www.econ.berkeley.edu/econ/ugrad/eac/eac.shtml
Student learning center: slc.berkeley.edu/general/index.htm
Disabled Students Program: dsp.berkeley.edu
Psychological counseling: www.uhs.berkeley.edu/students/counseling

Please note: This syllabus is a living document.
To keep informed of the required readings and
assignments, it is YOUR responsibility to refer
to class slides and class web-site.


Course Outline:

Week 1
Introduction the world economy over a decade
19
th
Century legacy from Mercantilism to free trade

Readings:
Globalizing capital, Chapter 1 & 2

Week 2
The first Golden Era Early 20th century globalization
Globalization at the beginning and end of the century

Readings:
Richard E. Baldwin and Philippe Martin, Two Waves of Globalisation: Superficial Similarities,
Fundamental Differences, NBER Working Paper no. 6904 (January 1999),
http://papers.nber.org/papers/w6904.pdf

Michael D. Bordo, Barry Eichengreen, Douglas A. Irwin, Is Globalization today really different than a 100
years ago?, NBER Working paper no. 7195 (June 1999)
http://www.nber.org/papers/w7195

Kevin H. Orourke, Globalization & Inequality: Historical Trends, NBER working paper no. 8339 (June 2001)
http://www.nber.org/papers/w8339

Week 3 PS1 posted
WWI, and the collapse of the new international order
Interwar instability & the Great Depression

Readings:
Globalizing Capital, Chapter 3

Eric Rauchway, The Great Depression and the New Deal: A Very Short Introduction, Chapter 1: The world in
debt, Oxford University Press, 2008. Electronic Copy available through UC Library

Barry Eichengreen, The Origins and Nature of the Great Slump Revisited, The Economic History Review,
Volume 45, Issue 2, May, 1992

Harold James, Financial flows across frontiers during the interwar depression, The Economic History Review
Volume 45, Issue 3, pages 594613, August 1992

Week 4
02/11/2014 PS1 due
FDRs legacy The New Deal, Great depression recovery and the re-definition of the American government

Readings:
Eric Rauchway, The Great Depression and the New Deal : A Very Short Introduction, Chapter 4: Reflation &
Relief, Oxford University Press, 2008. Electronic Copy available through UC Library


Christina Romer, What ended the Great Depression? The Journal of Economic History, Volume 52, No. 4,
December 1992

NO CLASS 02/13/2014

Week 5
2/18/2014 MIDTERM I
WWII & the world economy

Week 6 PS2 posted
Reconstructing world economy post WWII Bretton-Woods and the birth of global financial institutions

Week 7
3/6/2014 PS2 due
Europes Golden Age
The Japanese Miracle

Week 8
The fall of the gold standard
The oil crises and its effects on the global economy

Week 9
Neo-liberalism in the 1980s the increasing role of IMF & WB
3/20 MIDTERM II

Week 10 SPRING BREAK!!!

Week 11
Globalization, take II convergence of markets, divergence in performance
The fall and rise of the Eastern block

Week 12 PS3 posted
The making of the European Monetary Union
The rise of China and India

Week 13
4/15/2014 PS3 due
The Asian Tigers
Emerging markets crises of the 1990s

Week 14
Latin America Crises and Reforms
Africa The Final Frontier?

Week 15
The role of corporate structure in re-defining global power
Are 20th century financial institutions compatible with the 21st century? The rise of debt crises, alternative
currencies and micro-finance
WEEK 16 - READING WEEK