Course Details

1. Categorize the most acute contemporary economic problems and discuss their sources.
2. Examine the nature of globalization and confront the opposing views on its impact on welfare
3. Critically assess the role of institutions in the world economy and their constraints.
4. Compare and contrast different theoretical approaches to the contemporary financial crisis and the recession in the real sector.
5. Debate the merits and drawbacks of the European Monetary Union from the current sovereign debt crisis.
6. Evaluate the effectiveness of different approaches to current economic problems in Cyprus and globally, and arrive at a consistent personal point of view, assembling information and data to support it.

Globalization and the world economic order: The nature of globalization: technological, institutional and structural changes in the world economy. Confrontation of opposing views on globalization: Why globalization works (M. Wolf) vs. Globalization and its discontents (J.Stiglitz). The role of institutions in the world economy. The rules of the world economic order, established in the second half of the 20^th century. The IMF, the World bank, G-7, G-8, G-20. Critical assessment of “the rules of the game”. The controversies of sustainable development. Discussion of different approaches to the establishment of new rules of the world economic order.

The World’s financial crisis and the recession in the real sector: An overview of the financial crisis. Drying up investment. Critical assessment of financial and institutional solutions, offered in the EU and in the U.S. Discussion of imperatives and alternatives of the world economic recovery and growth.

The EU: Multiple European Problems and Challenges: The single European market and the multiple European problems and challenges. Short run vs. long run economic problems in the EU. Critical assessment of the Lisbon Agenda: goals, tools, and achievements. Europe 2020. Analysis of the merits and drawbacks of the European Monetary Union. The current sovereign debt crisis and the controversies of approaches to handle it. Case studies.

The world’s markets for commodities: Characteristics of the world’s markets for commodities (crude oil, natural gas, grains and vegetable oils, etc). Discussion of technological and structural changes and their impact on the world’s markets for commodities. Assessment of pros and cons of prospective future developments.

Current Economic Issues of the Republic of Cyprus: Analysis of the crisis in the real estate market. Discussion of alternative solutions for negative externalities - the water problem, the issue of energy saving, etc. Other issues of the day

• Bonello F. J. and I. Lobo, Taking Sides: Clashing Views on Economic Issues. McGraw-Hill; 14th Edition, 2010.
• Edgmand, M., Moomaw, R., Oslow, K., Economics and Contemporary Issues – Barnes & Noble (latest available edition)

• Begg, D., Global Economics: Contemporary Issues, McGraw Hill Education
• Levitt, S.D. and Dubner, S.J., Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, Penguin
• Sen A. Development as Freedom. Oxford University Press: 1999
• Wolf M. Why Globalization Works. Yale University Press: 2004
• Stiglitz J. Globalization and its Discontents, W.W.Norton & Company: 2002.

Ex cathedra lectures and discussions in class, by means of traditional tools or using computer demonstrations. Some of the key issues are revealed on the basis of simulation games.

Topic notes are compiled by students, during the lecture which serve to cover the main issues under consideration and can also be downloaded from the lecturer’s webpage. Further literature search is encouraged by assigning students to identify a specific problem related to some issue, gather relevant scientific information about how others have addressed the problem and report this information in written or orally.

Students’ teams (of two or three individuals) are assigned to study a current economic problem, related to the course subject, and approved by the instructor. The case study should be presented in class.