PAPER 2:

Topic:  How does a country's financial system affect its other economic policies, its growth performance, and its susceptibility to financial crises? Do some additional research on the question of financial liberalization, financial regulation, financial repression, and financial openness, and you should go beyond the superficial explanation.  What degree of government intervention is likely to lead to more efficient and/or more stable markets?  What policies work, and what policies don't?  

Next, look for a good case study.  Choose either a country that has liberalized its financial system and/or experienced a financial crisis, or compare two countries that have different financial systems but are similar in many other ways.  Explain how financial systems affected growth performance, and be sure to relate the case study to the more theoretical discussion at the beginning.

Don’t choose the U.S., Japan, or Russia, and don't choose any country which has been recently torn apart by war.  Before you make a final decision, you should make sure you can find enough sources in the library.  You must use a significant amount of outside research in addition to any relevant class readings, and all references must both be cited (Name year: pages) in the text and listed alphabetically in a bibliographic section at the end entitled "References."  Use a variety of sources, including books, journal articles, newspaper articles, and official websites.  Don't cite Wikipedia in your paper, but it is OK to use Wikipedia to get pointed towards other, more reliable and original sources.

This is a research paper worth twice as much as Paper 1, and should be approximately 12-15 pages (not including the cover page, references, and tables). Use the same basic format as in the first paper assignment.

Paper Due Date: Start of class on Thursday, December 4, 2008. Again, turn in a disk with your paper on it.  Late papers will lose one full grade per week (prorated), and all papers must be turned in by December 17 to receive any credit.