The document summarizes the first meeting of the Undergraduate Economics Association at Boston University. It announces upcoming events like an economics talk, writing workshops, and article competitions. It also lists opportunities for sales and field programs. The mission of the association is to develop students' interests in economics through social, academic and professional means. Students are encouraged to get involved by writing articles, attending workshops and events.

1. Undergraduate Economics Association
First Meeting
(9/12/13)

2. Undergraduate Economics Association
2
Announcements
Econ Talk
 Sunday, Sept. 15, 12:00pm in GSU Starbucks
Writing Committee + STATA Workshop
 Sunday, Sept. 29, 1:00-2:00 pm in CAS 322
UEA Article Competition
 Tuesday, Oct. 22

3. Undergraduate Economics Association
3
Announcements
Luke Rebecchi’s Article: The Ironic Implications of Relativism

4. Undergraduate Economics Association
4
Opportunities
Sales Development Program
Virtual Info Session: Thurs, 9/26
9pm – 10pm PST
https://attendee.gotowebinar.com/register/53
62629723283066368
 Learn the retail structure of the many
brands
 Attain sales and corporate experience
 3-5 year program
Field Sales Leadership Program
Virtual Info Session: Thurs, 9/26
2pm – 3pm PST
https://attendee.gotowebinar.com/register/14
61167743259911680
 Help in the selling and promoting of the
best brands
 Real-time decision making
 Coaching and developing your team
 1 year program

5. Undergraduate Economics Association
Platform for gaining insights into today’s
economic issues
Platform for generating discussions
on economic issues
Platform for showcasing your talent
5
Our mission is to socially, academically, and professionally develop Boston University
students interest in the economics field.
Mission
Undergraduate Economics Association?

6. Undergraduate Economics Association
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UEA Website
Student Writers Article Competition
UEA Journal
Database Events
Gallery Constitution
Presentations
Economics Calendar
Case Competition
BUUEA.com

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UEA Event
Résumés, Cover Letters and CVs
Tuesday, Oct. 1st, 7-8 p.m. at CAS 211
 To learn the differences between résumés & CVs
 How to write a formal and perfect cover letter
 Very important skills for jobs, research positions and life!
 You require CVs for UROP or any research positions
 Don’t miss it!

8. The World Bank
The International
Monetary Fund
and

9. Bretton Woods, 1944
• How can we prevent another depression?
• Control the (new) international financial markets
• How can we contain the spread of communism?
• Link the world markets to the US
• Peg world currencies to dollar (+- 1%)
• Dollar stays linked to gold at price of $35 per ounce

10. Washington Consensus, 1980
• Breakdown of BrettonWoods system
• Liberalization of international financial system
• Debt Crisis
• The need to meet interest payments was lead by IMF
• Protect the international financial system (banks)
• Ensure Payment
• New loans to help meet these payments
• Net income for IFI’s

11. Hard Power vs. Soft Power

12. The IMF – “Hard Power”
• The “Fire Brigade”
• Emergency Financing
• Balance of payments assistance
• Fundamental Disequilibrium
• Debt rollover
• Bridge the gap between payments

13. The IMF – “Soft Power”
• Signaling / Surveillance
• Publishing country reports
• Provides potential investors with information
confidence
• Lock-in Effect
• Conditionality allows countries to push blame
onto IMF
• Think-Tank
• Publishes Working Papers
• Controls Data
• The IMF Institute
• Created for foreign government officials (technocrats)
• Helps find interlocutors in potential clientele

14. IMF Projects
• Mexico
• 1980’s
• Series of economic reforms
• 1990’s
• Widening of exchange rate band
• Rapid capital outflow
• Greece, Ireland, Portugal
• Late 2000’s
• Sovereign Debt Crisis, Banking Crisis
• Governments took on private debt
• IMF called in

15. The World Bank (Group)
TheWorld
Bank

16. Three World Bank Agencies
• The IBRD
• Lends to creditworthy low and middle income countries
• The IDA
• Provides interest-free loans (credits) to the lowest income
countries
• The IFC
• Works exclusively with development in the private sector

17. The World Bank – “Hard Power”
• “Potholes and Pipes”
• Structural Adjustment Lending
• Initially:
• Infrastructure Development
• Now:
• Many general projects (environmental, societal issues)
• “Only Economic considerations shall be relevant to their decisions”
• (Article IV, section 5)
• Non-GNP Based goals (McNamara, 1968)

18. The World Bank – “Soft Power”
• World Development Report
• Annual report on areas of important economic development
• Research Grants
• ThinkTanks
• Creates civil society experts
• Field-oriented
• Ex-ante conditionality

19. World Bank Projects
• The IBRD
• Tunisia
• “Improving business environment by removing red tape”
• “Advancing transparency through improved public access to
information”
• The IDA
• Nicaragua
• Rural development
• Gender issues
• The IFC
• Microfinance companies

20. Funding
• Largely determines votes
• (IMF) US 17%, EU 32%, China 4%
• IMF: Special Drawing Rights (SDRs)
• World Bank: US Dollars
• “Small Quota Policy”
• WeightedVoting
• Super-majority requirements for loan disbursement

21. The Polak Model
• Based on a series of conditions
• Identified crises as short-term liquidity crisis or balance of
payments
• GDP growth should = money supply growth
• Easy data: banking system assets and liabilities
• Monetary targets
• Balance of payment problems?
• Buzzword: Austerity
• Reduce government spending, increase taxes, reduce domestic
credit creation

22. Conditionality
• When borrowing from IFI’s, countries agree to specific policy
prescriptions
• Loan disbursement is contingent on following the policies
• E.g., Eurozone Crisis, Greece
• Spending cuts, tax increases
• Predicted growth returning after a few years of downturn
• The problem of ex-post conditionality
• Discussions usually involve isolated economically focused
governmental areas
• E.g.,Central Banks, Finance Ministers, etc.
• May be blocked by parliaments or other government organs

23. “Western” Influences
• IMF Managing Director –
European
• Christine Lagarde
• World Bank President –
American
• JimYong Kim

24. “Western” Influences
• The Case of the IDA
• Special Fund
• 1970’s,Vietnam
• Influence in the IMF
• No specific injunction such asWorld Bank
• The Fund shall “respect the domestic social and political policies
of members” (Article IV, section 3)

25. Collaboration
• Occasionally the IMF andWorld Bank will work together
to create loan agreements
• Cross-Conditionality
• Sometimes this can fail
• 1988, Argentina
• Pressure from US Government
• IMF: Further Austerity
• World Bank: Wanted prioritization on its policy reforms
• “Letter of Development Policy”

26. The Future
• How can the IFI’s lend in an unbiased manner?
• Difficult due to sovereign interests
• Is ex-ante conditionality the future of lending?
• “Soft” Power may be easier to utilize
• Is it possible to create a technocrat based institution that
is open to new ideas?
• ???

27. References
• Woods, Ngaire. The Globalizers:The IMF, theWorld Bank, andTheir
Borrowers. Ithaca, NY: Cornell UP, 2007. Print
• http://www.worldbank.org/en/about
• http://econ.worldbank.org/
• http://www.imf.org/external/index.htm
• http://www.imf.org/external/pubs/ft/fandd/2008/06/people.htm
• http://www.systemdynamics.org/conferences/2001/papers/Grcic_1.pdf

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Student Writers
 Simply write an article and send it to uea@bu.edu or jparam@bu.edu,
spetitti@bu.edu
 All articles are eligible for the BU UEA Article Competition & BU UEA Journal
Article Competition
 The BU Article Competition takes place twice a semester
 Winners are chosen by a formula: 0.28(quantity) + 0.14(quality) + 0.58(traffic)
UEA Journal
 All student-written articles are eligible for the BU UEA Journal
 Articles are chosen based on quality each semester
 The Journal is virtually distributed to members, professors, and alumni
Writing Committee
 Email via uea@bu.edu or jparam@bu.edu, spetitti@bu.edu
 Not required to be Student Writers
 If you want to present then come to the meetings as well!
How You Can Get Involved
STATA Workshop
 Come to the Writing Committee meetings on Sunday 1-2 pm, CAS 322
 No need of prior knowledge of STATA. Experienced users are welcomed as well!

29. Undergraduate Economics Association
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Announcements
Econ Talk
 Sunday, Sept. 29, 12:00pm in GSU Starbucks
Writing Committee + STATA Workshop
 Sunday, Sept. 29, 1:00-2:00 pm in CAS 322
BU Career Development Office (CDO) CV + Resume Workshop
 Tuesday, Oct. 8th, 7:00-8:00 pm in CAS 322

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UEA Event
Résumés, Cover Letters and CVs
Tuesday, Oct. 1st, 7-8 p.m. at CAS 211

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The Social Websites
Inform Discuss Debate
Network