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Gottfried Haberler’s two term Harvard graduate course sequence in International Economics at mid-century was divided along Theory vs. Policy lines as opposed to the (real) Trade & Commercial Policy vs. (monetary) International Finance & Exchange used in current textbooks.
I have taken the liberty of combining the Fall term in 1949 with the Spring term of 1951 for which I have the reading lists. I could not find the latter at Harvard, but spotted a copy in Milton Friedman’s papers in a folder for other people’s syllabi.
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[Economics 243a International Trade. Enrollment, Fall Term 1949]
Total 36: 23 graduates, 1 senior, 12 other (of which 1 MIT, 4 Radcliffe).
Source: Harvard University. Report of the President of Harvard College and reports of departments, 1949-1950, p. 75.
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Economics 243a
Professor Haberler – Fall Term, 1949
During the first half year, the theory of international trade, including the theory of tariffs and other international trade policies, will be discussed in a systematic fashion. The subject of the spring term will be selected topics in the field of international economic relations.
Outline for First Half-Year
- International trade and national income. The importance of trade for various countries. Measures of importance.
- International accounts. International transactions of the national economic budgets.
- Foreign exchanges. Demand and supply for exports and imports. The market for foreign currency. Purchasing power parity theories.
- The balance of payments mechanism. Price effects, income effects, the foreign trade multiplier. The transfer problem.
- The international division of labor. The theory of comparative cost. Modern developments of the theory of comparative cost. Ohlin’s general equilibrium theory of interregional and international trade.
- The welfare implications of international trade theory. The theory of tariffs and protection in general. Monopoly and monopolistic competition in international trade.
- International trade theory and location theory.
Reading Assignments and Suggestions
General
The literature in the subject is so rich that students can acquire the knowledge necessary for the course in many different ways. Students are invited to make their own choice from the suggestions below. Two extensive bibliographies have been prepared in former terms for other courses. One may be obtained from Ms. Buller, Littauer 322; the other from Professor Williams’ secretary, Littauer 231. Each student is expected to have read one or the other of the following general monographs or texts:
Ellsworth: International Economics
Enke and Salera: International Economics
Haberler: Theory of International Trade
Harris (Editor): Foreign Economic Policy for the U.S. (especially Part V)
Harrod: International Economics (3rd edition, 1939)
Marshall: Money, Credit, and Commerce, (Part III and Appendix g)
Meade and Hitch: Introduction to Economic Analysis and Policy (Part III)
An excellent discussion of recent developments will be found in: Metzler: “The Theory of International Trade,” Chapter. 6, Survey of Contemporary Economics (1948)
Readings in the Theory of International Trade contains an excellent collection of articles on all phases of the course
Taussig: International Trade (1927)
Tinbergen: International Economic Cooperation (1945)
Whale: International Trade
Assignments and Suggestions to Subjects Listed Above
(in addition to relevant chapters in general texts)
- The Post-War Foreign Economic Policy of the United States. 6th Report of the House Special Committee on Post-War Economic Policy and Planning. House Report No. 541. Washington, 1945. (This report was written by Lloyd Metzler.)
The United States in the World Economy, U. S. Department of Commerce, 1943.
Buchanan and Lutz: Rebuilding the World Economy (1947)
J. Brown: Industrialization and Trade (1943)
A. J. Brown: Applied Economics (1948), Ch. VI
Readings, Chs. 21 and 22, by D. H. Robertson and J. Finder - Balance of Payments Yearbook, 1938-1941-1947 (International Monetary Fund)
Hicks: The Social Framework of the American Economy, Ch. XII, “Foreign and National Income”
The Survey of Current Business (monthly publication of Dep. of Commerce) has frequent articles on trade and balance of payments statistics.
The United States in the World Economy (U.S. Department. of Commerce, 1943) - Nurkse: International Currency Experience (League of Nations, 1944)
J. Robinson: “Foreign Exchanges,” Essays on the Theory of Employment (1st ed., 1938; 2nd ed., 1947), Part III; reprinted in Readings, Chapter 4.
J. Robinson: “Beggar-My-Neighbor Remedies for Unemployment,” Readings, Ch. 17.
Machlup: “The Theory of Foreign Exchanges,” Economica, 1939 (two articles); Readings, Ch. 5.
Pigou: “The Foreign Exchanges,” Quarterly Journal of Economics, November, 1922, Reprinted in Essays in Applied Economics (1927)
Metzler: op. cit.
Harris (Editor): Foreign Economic Policy for the U. S., Part V, Chs. 20, 21, 22. - Keynes and Ohlin on German Reparations in Economic Journal, 1929; and Readings, Chs. 6 and 7.
Iversen: International Capital Movements, 1935.
Machlup: International Trade and the National Income Multiplier (1943)
Harris (Editor): The New Economics, Part V, especially essays by Bloomfield and Nurkse.
Williams: Post-War Monetary Plans and Other Essays (3rd edition, 1947). - In addition to general texts, see:
Edgeworth: Papers Relating to Political Economy, Vol. II, p. 3-60.
Ellsworth: “A Comparison of International Trade Theories,” American Economic Review, June, 1940.
Leontief: “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, May, 1933; Readings, Ch. 10.
Mill: Principles
Ohlin: op. cit. Parts I, II, and possibly III.
Readings, Chs. 12, 13, 15, by J. H. Williams, E. Heckscher, and W. Stolper and P. Samuelson
Ricardo: Principles
Taussig: International Trade
Viner: Studies in the Theory of International Trade (last two chapters) - Samuelson: “The Gains from Trade,” Readings, Ch. 11.
Scitovszky: “A Reconsideration of the Theory of Tariffs,” Readings, Ch. 16.
Henderson: “The Restriction of Foreign Trade,” in The Manchester School of Economic and Social Studies, Volume 14, January, 1949.
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1). Box 5, Folder “Economics 1949-1950, 3 of 3”.
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1950-51
Economics 243b
Spring Term—Professor Haberler
International Economic Policy
with special emphasis on the theoretical foundations
- Introduction
Theory and Policy
Aims of Economic Policy
International Trade, Economic Welfare and National Income
International Trade and Employment
The Quantitative Importance of International Trade - Brief Sketch of the Historical Evolution of Theory of International Trade and International Economic Policy
Pre-Mercantilist Views
Mercantilism
Classical Liberalism
Reaction to Liberalism: Historical School
From the Repeal of the Corn Law to 1914
The Interwar Period
–The 1920’s
–The 1930’s
Recent developments
The Rise of Socialism and Planning and their Impact on Trade Policy - Free Trade and Protection: A Theoretical Analysis
The Case for Free Trade: The Theory of Comparative Cost
Arguments for Protection: “Economic” vs. “Non-economic” Arguments
Infant Industry Argument: Problems of Economic Development
Terms of Trade: Monopoly and Monopolistic Competition in International Trade
Trade Policy and Unemployment - Balance of Payments, the Exchange Rate and International Monetary Policy
The International Accounts
–Balance of Payments and National Economic Budget
Stable Exchanges
–Gold Standard
–Gold Exchange Standard
Currency Depreciation
–Demand and Supply for Exports and Imports
–Market for Foreign Exchange
–Stability Conditions
The Transfer Problem
Dollar Shortage - Quantitative Restrictions
Quotas
Exchange Control - Most-Favored-Nation Principle, Discrimination and the Economics of Regional Blocs
Preferential Tariffs
Customs Unions
Economic Unions
Monetary, Clearing and Payments Unions
Literature
General Treatises and Historical
- Descriptive and Historical
Brown: Industrialization and Trade (1943)
Buchanan and Lutz: Rebuilding the World Economy (1947)
Condliffe: The Commerce of Nations (1950)
League of Nations: The Network of World Trade (1942) - Theoretical
Ellsworth: International Economics (1938)
Ellsworth: The International Economy (1950)
Haberler: Theory of International Trade
Harrod: International Economics (1938)
Metzler “Theory of International Trade” in Survey of Contemporary Economics
Ohlin: Interregional and International Trade
Taussig: International Trade
Marshall: Money, Credit, and Commerce
Meade and Hitch: Introduction to Economic Analysis and Policy (Part V)
J. S. Mill: Principles, Book III, Ch. 17, 18, 20, 21; Book V, Ch. 4 (reprinted in Selected Readings)
Enke and Salera: International Economics
Ellis and Metzler: Readings in the Theory of International Trade (quoted as “Readings”)
Taussig (Editor): Selected Readings in International Trade and Tariff Problems (quoted as “Selected Readings”)
Viner: Studies in the Theory of International Trade
Williams: Postwar Monetary Problems and Other Essays
Reading for Individual Sections of Outline
- No specific reading.
- No specific reading.
- Practically all theoretical texts mentioned above. See especially:
Ellsworth
Haberler
Readings: Chs. 10, 11, 15, 16
Selected Readings, Chs. 1, 2, 9
In addition: Haberler: “Some Problems in the Pure Theory of International Trade,” Economic Journal, June, 1950.
A. Henderson: “The Restriction of Foreign Trade,” in The Manchester School of Economic and Social Studies, Vol. 14, January 1949.
J.E. Meade: “A Geometrical Representation of Balance of Payments Policy,” Economica, November 1949.
John Robinson: “The Pure Theory of International trade,” Review of Economic Studies, Vol. XIV, 1946-47.
J.S. Mill, Principles. - Balogh: Dollar Crisis (1949)
Ellis: The Economics of Freedom
Ellis: The Progress and Future of Aid to Euorpe (1950)
Kindleberger: Dollar Shortage (1950)
Harris: Foreign Economic Policy of the U.S., Part V. Essays by Haberler, Samuelson
Harris: (Editor) The New Economics, Part V, especially the essays by Bloomfield and Nurkse
Hicks: The Social Framework, Ch. 12.
Metzler’s article in Survey.
Nurkse: International Currency Experience, League of Nations, 1944.
Readings, Chs. 4, 5, 6, 7, 17.
Williams, op.cit.
Source: The Hoover Institution Archives. Milton Friedman Papers, Box 80, Folder 80.8 “Syllabi by others”.