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VII. GLOBAL CAPITAL MARKET INTEGRATION: DEVELOPING COUNTRIES *Kose, M. Ayhan, Eswar Prasad, Kenneth Rogoff and Shang-Jin Wei, “Financial Globalization, A Reappraisal,” December 2006 (revised version of International Monetary Fund, Working Paper WP/06/189, August 2006). IX. WHY MONEY FLOWS FROM NORTH TO SOUTH *Moral Hazard: Obstfeld and Rogoff: pp. 407- 419. Externalities to Human Capital: Robert E. Lucas, 1988, “Why Doesn’t Capital Flow from Rich to Poor Countries,” American Economic Review, May 1990, pp. 92-96. Alfaro, Laura, Sebnem Kalemli-Ozcan, Vadym Volosovych, "Why Doesn’t Capital Flow from Rich to Poor Countries? An Empirical Investigation," NBER working paper 11901, December 2005. X. JAPAN’S DEFLATION TRAP *Krugman, Paul, "It's Baaack: Japan's Slump and the Return of the Liquidity Trap," Brookings Papers on Macroeconomic Activity, 1998, v2, 137-205. (including comment by Dominguez and Rogoff) (N.B.: Our focus will be on the analytics as covered in the HANDOUT). Eggertsson, Gauti B. and Michael Woodford, “The Zero Bound on Interest Rates and Optimal Monetary Policy,” Brookings Papers on Economic Activity 34 (2003), volume 1, 139-235 XI. INTERNATIONAL FINANCIAL CRISES *Reinhart, Carmen and Kenneth Rogoff, “Is the 2007 US Sub-Prime Financial Crisis So Different? An International Historical Comparison,” American Economic Review 98 (May 2008): 339-344. *Reinhart, Carmen and Kenneth Rogoff, “The Aftermath of Financial Crises,” American Economic Review 99 (May 2009): 466-472. *Reinhart, Carmen and Kenneth Rogoff, This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press, 2009, (selected chapters). Reinhart, Carmen and Kenneth Rogoff, “Banking Crises: An Equal Opportunity Menace, manuscript, Harvard University, December 2008. *Allen, Franklin, and Douglas Gale, Understanding Financial Crises, Oxford: Oxford University Press, 2007, ch 3. HOUSE_OVERSIGHT_019401