Topic 0: Getting in the Mood for Macro!

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Oct 28, 2013 (4 years and 16 days ago)

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Topic 0:

Getting in the Mood for Macro!


Pre
-
Course Readings (
These are the readings you should do prior to week 1
.)
Goal
: To frame
the issues of the course via a few short articles from the popular press. We will explore many of
the details of these articles throughout the course.


I.

Overview of Macroeconomics


1.

Size Does Matter: In Defense of Macroeconomics* (Paul Kru
gman: 7/9/1998)

2.

Baby Sitting the Economy*





(Paul Krugman: 8/13/1998)


II
.

2008 Financial Crisis: The Beginning


3.

Wall Street’s Bad Dream




(Economist: 9/20/2008)

4.

Bad or Worse (search bad worse)



(Economist: 10/11/2008)

5.

Diamond and Kashyap Primer
*



(

Erik’s web page
)


III.

2008 Financial Crises: The Aftermath


6.

What If?






(Economist: 9/12/2009)

7.

A Joyless Recovery (on web page)



(Economist: 10/29/2009)

8.

When Good News Is Bad News



(Economist: 12/12/2009)

9.

What Might Cause a Two
-
Track Recession
*

(Casey Mulligan: 5/18/2010)

10.

Is it Time to Start Talking About a Double
-
Dip




Recession? It Just Might Be



(Fortune: 6/13/2011)



IV
.

The (New) Link Between Governments and Markets


11.

When Fortune Frowned




(Economist: 10/11/2008)

12.

Taming the
Beast





(Economist: 10/11/2008)



V
.

Macroeconomic Modeling


13.

Big Questions and Big Numbers



(Economist: 7/15/2006)


14.

What the World Bank Knows



(Economist: 1/13/2007)



VI.

The State of Modern Macroeconomics


A.

A Critical
Overview


15.

What Good Are
Economists Anyway?


(BusinessWeek: 4/16/2009)


B.

A Civil Debate


16.

The Other Worldly Philosophers



(Economist: 7/18/2009)

17.

Efficiency and Beyond




(Economist: 7/18/2009)

18.

In Defense of the Dismal Science (by R. Lucas)

(Economist: 8/8/2009)


C.

A Less Civil
Debate


19.

Krugman: How Did Economists Get it So Wrong* (NY Times Mag:9/2/2009)

20.

Cochrane’s Response to Krugman *



(
Erik’s Web Page
)




Topic 1:

Introduction to Macro Data


Chapters 1, 2, and 3.5 from
Text
.



I.

The Difficulty in Measuring Economic Variables


A.

Difficulty in Measuring Prices


21.

Feeling the Heat





(Economist: 6/24/2006)



B.

Difficulty in Measuring Output/Output Growth


22.

Divining the Future





(Economist: 1/15/2005)

23.

Botox and Beancounting




(Economist 4/30/2011)

24.

Diagnosing Depression




(Economist: 1/3/2009)


C.

Difficulty in Measuring Unemployment


25.

Where Are the Workers?




(Economist 2/12/2011)



D.

Difficulty Measuring Well Being


26.

Measuring What Matters




(Economist: 9/19/2009)





II.

The Yield Curve


27.

Dangerous Curve





(Economist:
4/30/2010
)





Topic 2:

Production, the Labor Market and Economic Growth


Chapters 3, 6.1 and 6.3 (skim 6.2
-

do not worry about the math) from
Text



I.

Production and Labor Markets


28.

The Employment Situation

May 2011
*


(
www. bls.gov 6/3
/2011)

29.

The Land of
Leisure




(Economist: 2/4/2006)

30.

The Quiet Americans




(Economist: 6/27/2009)


II.

Growth in the “New” Economy




31.

Productivity on Stilts




(Economist: 6/10/2000)

32.

Performing Miracles




(Economist: 6/17/2000)

33.

The New “New Econ
omy”




(Economist: 9/13/2003)

34.

A Graduation Gift for College Seniors: Jobs


(Bloomberg 5/9/2011)




III.

Productivity and Regulation


35.

Taped






(Economist: 10/7/2006)

36.

Red Tape Rising





(Economist 1/22/2011)




Topic 3:

Consumption, Saving, and Investment


Ch
apters 4.1, 4.2 and Appendix 4.A from
Text



I.

Consumption/Savings


37.

A Future Meltdown?




(Economist: 9/4/2004)

38.

The End of the Affair




(Economist: 10/22/2008)

39.

Dropping the Shopping




(Economist: 7/25/2009
)

40.

The Nature of Wealth




(Economist:
10/10/2009
)


II.

Investment


41.

From Investment Boom to Bust



(Economist: 3/3/2001)

42.

Desperately Seeking a Cash Cure



(Economist: 10
/22/2008)




Topic 4:

Fiscal Policy


Chapter 15 from
Text




I.

Government Deficits


43.

Coping With Surpluses




(Economist:
5/20/2000)

44.

The Big Sweat





(Economist: 6/13/2009
)

45.

All Economics is L
ocal




(Economist 11/20/2010)

46.

The Real Fight Begins




(Economist 4/9/2011)



II.

Taxes


47.

The Tax and Spending Compromise
/The Tax Deal
-


A Second Stimulus?

by Gary Becker

and Richard Posner
*


(12/26/2010)

48.

The
New Voodoo
*





(
Paul Krugman:
12/30
/2010)



IV.

Fiscal Policy in Action


49.

Why the War Against Terror Will Boost the Economy* (Robert Barro: 11/5/2001)

50.

What’s Wrong with America’s economy?


(Economist 4/30/2011)





Topic 5:

Introduction into Money/Federal Reserve Policy


Chapters 7, 14.1 and
14.2 from

Text


I.

Monetary Basics


51.

Who Needs Money





(Economist: 1/22/2000)


52.

Putting the Air Back In




(Economist: 11/1/2008)



II.

Monetary Policy In Action
: Part 1


53.

A

Blunt Tool





(Economist: 6/30/2001)


54.

The Doctors’ Bill





(Economist: 9/27/2008)




Topic 6:


Inflation and Unemployment in the Short Run (Putting it All Together)


Chapters 8
-
11 from
Text



I.

A Look at Recessions


55.

The Kiss of Life?





(Economist:

4/21/2001)

56.

The Geography of a Recession



(Economist: 2/9/2008)



III.

Should We Care About Deflation?


57.

Hear that Hissing Sound?




(Economist: 5/17/2003)

58.

The Curse of Defeatism




(Economist: 11/28/2009
)



IV.

Shifts in Aggregate Supply: Technology

Shocks


59.

A Thinkers' Guide





(Economist: 4/1/2000)



V.

Shifts in Aggregate Supply: Oil Shocks


60.

Counting the Cost





(Economist: 8/27/2005)

61.

A Rhetorical B
lowout




(Economist 5/14/2011)



Topic 7:

Policy Rules


Chapter 12 and 14.3 from
Text




I.

The Inflation/Unemployment Tradeoff


62.

What Happened to the Phillips Curve*


(Brad Delong)

63.

Curve Ball






(Economist: 9/30/2006)






II.

Monetary Rules (see web page for online locations)


64.

Money Rules





(Economist: 10/24/1998)

65.

Federal Reserve Board:
Remarks By Governor Edward Gramlich


9/27/98 *

(Discussion of How the Fed Makes its Monetary Policy Decisions)

66.

Federal Reserve Board: Remarks By Chairman
Ben Bernanke

-

5
/
25
/
10

*

(
Central Bank Independence, Transparency, and Accountability
)

67.

What Goes

Around





(Economist: 6/9/2007)





III.

Putting it all Together


68.

Between Bears and Hawks




(Economist: 5/13/2006)

69.

Anatomy of a Hump




(Economist: 3/10/2007)




Topic 8:

Special Topics



I.

The 2008 Financial Crisis Revisited


70.

The Financial Crisis
and the Bailout: A Primer (Steve Kaplan)
*

Erik’s
web page

71.

The Financial Crisis: Where Do We Go Now? (John Cochrane)
*

Erik’s

web page

72.

Damage Assessment




(Economist: 5/16/2009)



II.

Inflation or Deflation?


73.

Old Enemy Rears its Head




(Economist:
5/24/2008)

74.

Depressing Times





(Economist: 11/15/2008)

75.

Everyday Higher Prices




(Economist 2/26/2011)


76.

Monetary Policy In Action: Part II


77.

The Hedge Fund of Foggy Bottom



(Economist: 5/2/2009
)

78.

This Way Out





(Economist: 6/6/2009
)

79.

Put Out






(Economist: 7/4/2009
)

80.

Narrow Success, Broad Concerns



(Economist: 9/5/2009
)

81.

As ‘Junk’

Bonds Fall, Some Blame Fed*


(WSJ
:

6/10/2011)



II
I
.

Praise for Bernanke



82.

The Very Model of a Modern Central Banker

(Economist: 8/29/2009
)



IV
.

Housing and the Macr
oeconomy


83.

The Darkest Hour





(Economist 5/21/2011
)

84.

Home Truths





(Economist 3/5/2011)


V.

Quantitative Easing 2


85.

The Bernanke Code





(Bloomberg
11/8/2010)

86.

The New Malaise and How to End It
*


(WSJ 11/8/2010)




Topic 9
:

The International Economy


Chapter 5 and 13 from
Text


87.

Trichet

the I
ntransigent





(Economist
: 5/14/2011
)

88.

Geithner’s Bold Push for a Stronger Yuan



(
Bloomberg: 10/18/2010)

89.

Scarce Talent, Rising Wages, B
alky Clients



(Bloomberg 5/30/2
011)