Schedule and Readings
Schedule and Readings
Brad DeLong: delong@econ.berkeley.edu: 925 708 0467: W 2-4 Evans 601, M 1:30-2 Evans 601
Marc Gersen: mgersen@econ.berkeley.edu: aim:mgersen08: 510-541-2326: ??
- Lecture: 247 Cory 9-10 AM M, W, and most F
- Section: MW 8-9 AM 237 Cory
- Section: WF 11-12 AM 61 Evans
- Section: ??
Introduction
W Jan 23: INTRODUCTION: The Problems of Macroeconomics
- J. Bradford DeLong and Martha Olney (2005), Macroeconomics (New York: McGraw-Hill/Irwin), chs. 1-3.
- Notes: Introduction: Why Macroeconomics?
- Web assignment 1 out (due Jan 25) Introductions
Theory (with Examples and Illustrations)
The Long Run: Economic Growth
F Jan 25: The Solow Model: Capital and Equilibrium
- Macroeconomics, 4
- Introduction to the Theory of Economic Growth
- Notes for Jan 25
- Problem Set 1 out (due Feb 1)
M Jan 28: The Solow Model: Dynamics and Feedback
- How Fast Does the Economy Head Toward Its Balanced-Growth Path
- Two Additional Notes
- Web Assignment 2 out (due Feb 4) Solow Growth Models Scenario Spreadsheet
W Jan 30: How Much of Today's World Can We Explain with the Solow Growth Model?
- Macroeconomics, 5
- Web Assignment 2 out (due Feb 4) Solow Growth Models Scenario Spreadsheet
F Feb 1: Current Events
- Problem Set 2 out (due Fed 8)
M Feb 4: From Malthus to Modernity
- Macroeconomics, review 5.1
- Notes: Resources and Malthus, and Industrial Revolutions
- Explorations in the Theory of Economic Growth
- Malthusian Scenarios
- Web Assignment 3 out (due Feb 11) The Gapminder Data Visualization Tool
W Feb 6: Understanding the Industrial Revolution
F Feb 8: Current Events
M Feb 11: Measuring Economic Growth
W Feb 13: The Productivity Slowdown of the 1970s
F Feb 15: PROFESSORIAL REALITY CHECK EXAM Midterm I Summary
The Medium Run: Economic Fluctuations with Flexible Prices
W Feb 20: Components of Aggregate Demand
- Notes
- Macroeconomics, 6
- Problem Set 3 out (due Feb 29)
F Feb 22: Full-Employment Equilibrium
- Notes
- Macroeconomics, 7
- Using the Flexible Price Model
M Feb 25: The International Side--Plus Government Budgets and Investment Booms
- Macroeconomics, review 6.3, review 7.5
- Web Assignment 4: Reading the Financial Press I due Friday February 29 9 am
W Feb 27: The Monetary Side: The Quantity Theory of Money, Inflation, and Expectations
- Notes
- Background and Models
- Macroeconomics, 8
- Web Assignment 5: Medium-Run Model Spreadsheet (due Mar 7)
F Feb 29: Quantity Theory Continued; Current Events
- Notes
- Problem Set 4 out (due Mar 7)
The Short Run: Economic Fluctuations with Sticky Prices
M Mar 3: Sticky Prices and Aggregate Demand
- Notes
- The Circular Flow
- Macroeconomics, 9
W Mar 5: The IS Curve and Employment
- Notes
- Reading: Macroeconomics, 10 including 10a
- Problem Set 5 out (due Mar 12)
F Mar 7: What happened this week in the macroeconomy?
M Mar 10: CLASS CANCELLED--PROFESSOR SICK
W Mar 12: The Phillips Curve, Inflation, and Monetary Policy
- Notes
- Dynamic Phillips Curve and Expectations Spreadsheet
- Macroeconomics, 12, including 12a (optional: 11)
F Mar 14: Tying Up the Short-Run and the Medium Run
- Inflation, Unemployment, and Stabilization Policy
- Mock Exam Out
F Mar 14: What happened this week in the macroeconomy?
M Mar 17: Loose Ends
- Notes: Core Theory Loose Ends
W Mar 19: CORE THEORY EXAM
- Problem Set out (due Apr 7) Stabilization Policy and Central Banking
APPLICATIONS
March 31: Markets for "Lemons"
Notes: Lecture Audio. Adverse Selection in Lending Markets.
Readings:
- George A. Akerlof (Aug. 1970). "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism". Quarterly Journal of Economics 84 (3): 488–500 http://links.jstor.org/sici?sici=0033-5533%28197008%2984%3A3%3C488%3ATMF%22QU%3E2.0.CO%3B2-6
- J. Bradford DeLong, "Dealing with Adverse Selection in the Mortgage Market"
- Mark Thoma, "Adverse Selection, Loan Defaults, and Credit Rationing"
- J. Bradford DeLong, Comment on Lawrence Summers, "Safeguarding America's Economy from Adverse Consequences of Financial Crisis"
April 2: Models of Financial Crises
Notes: Lecture Audio
Readings: David Greenlaw (Morgan Stanley), Jan Hatzius (Goldman Sachs), Anil Kashyap (Chicago GSB) and Hyun Shin (2008), "Leveraged Losses Lessons from the Mortgage Market Meltdown" http://www.chicagogsb.edu/usmpf/docs/usmpf2008confdraft.pdf
April 4: Ways of Dealing with Financial Crises
Lecture Audio
Readings:
- "Fedspeak": Janet Yellen, "The U.S. Economy: Prospects and Puzzles"
- Ben S. Bernanke, "Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression" http://links.jstor.org/sici?sici=0002-8282%28198306%2973%3A3%3C257%3ANEOTFC%3E2.0.CO%3B2-0
Problem set: Adverse selection and financial markets. Clean Version
Memo: Midterm 2 Grading Scale
April 7: How Are We Dealing with This Financial Crisis?
Notes: Lecture Audio http://delong.typepad.com/berkeley_econ_101b_spring/2008/04/what-we-are-doi.html
April 9: What Should We Be Doing in This Financial Crisis that We Are Not?
Notes: Lecture Audio: http://www.j-bradford-delong.net/2008_MOV/20080409_123925.mp3
Readings:
- Arguments Against Lender-of-Last-Resort Operations http://delong.typepad.com/delongslides/2008/04/arguments-again.html
- Paul Krugman's "Cartoon Model" http://krugman.blogs.nytimes.com/2008/03/10/a-cartoon-model-of-the-crisis-more-serious-wonkery/
- A Subprime Primer http://gregmankiw.blogspot.com/2008/03/subprime-primer.html
April 11: International Finance and "Global Imbalances": Introduction
Notes: Lecture Audio http://www.j-bradford-delong.net/2008_mov/20080411_091301.mp3
Readings:
- Raghuram Rajan, "Global Current Account Imbalances: Hard Landing or Soft Landing?" http://www.imf.org/external/np/speeches/2005/031505.htm
- Maurice Obstfeld, "Global Imbalances" http://www.econ.berkeley.edu/~obstfeld/280c_sp07/adjustment.pdf
- Hamid Faruqee, "Narrowing Global Imbalances?" http://www.imf.org/external/pubs/ft/survey/so/2008/RES021908A.htm
April 14: Risks of International Financial Crisis
Notes:
- Global Imbalances: http://delong.typepad.com/delongslides/2008/04/global-imbalanc.html
- Lecture Audio: http://www.j-bradford-delong.net/2008_mov/20080414_091122.mp3
- International Financial Crises: http://delong.typepad.com/delongslides/2008/04/foreign-exchang.html
Readings:
- "The International Financial Crises of the 1990s" http://j-bradford-delong.net/macro_online/ifc.pdf
- "Simple Analytics for a Hard Dollar Landing" http://www.j-bradford-delong.net/movable_type/pdf/hard_landing.pdf
- DeLong and Olney, chapter 15.
April 16: Risks of International Financial Crisis II
Notes: Lecture Audio: http://www.j-bradford-delong.net/2008_mov/20080416_122152.mp3
International Financial Crises Problem Set Clean Version. Due April 23
April 21: Why Is Asia Gambling on Bretton Woods II?
Notes: Slides: http://delong.typepad.com/delongslides/2008/04/econ-101b-april.html; Lecture Audio: http://www.j-bradford-delong.net/2008_mov/20080421_091146.mp3
Readings:
- Barry Eichengreen,"China's Exchange Rate Regime: The Long and Short of It" http://www.econ.berkeley.edu/~eichengr/research/short.pdf
- C. Fred Bergsten, "The Dollar and the Renminbi" http://www.iie.com/publications/papers/paper.cfm?ResearchID=747
Institute for International Economics, "China: The Balance Sheet" http://www.petersoninstitute.org/publications/chapters_preview/04648/01pa04648.pdf
April 23: The Chinese Economy
Notes: Slides: http://delong.typepad.com/delongslides/2008/04/econ-101b-april.html; Lecture Audio: http://www.j-bradford-delong.net/2008_mov/20080423_091349.mp3
Readings:
- Barry Eichengreen,"China's Exchange Rate Regime: The Long and Short of It" http://www.econ.berkeley.edu/~eichengr/research/short.pdf
- C. Fred Bergsten, "The Dollar and the Renminbi" http://www.iie.com/publications/papers/paper.cfm?ResearchID=747
- Institute for International Economics, "China: The Balance Sheet" http://www.petersoninstitute.org/publications/chapters_preview/04648/01pa04648.pdf
April 25: Long-Run Growth Revisited: Endogenous Growth
Notes: Lecture Audio; “Infant Industries,” Industrial Policy, and Development in a Model of Productive Variety http://www.j-bradford-delong.net/2008_pdf/20080424_industrial_policy.pdf
Readings:
- Paul Krugman, "Review of David Warsh, 'Knowledge and the Wealth of Nations'" http://www.nytimes.com/2006/05/07/books/review/07krugman.html
- US Economic Development Administration, "New Growth Theory, Technology and Learning: A Practitioner’s Guide" http://www.eda.gov/ImageCache/EDAPublic/documents/pdfdocs/1g3lr_5f7_5fcortright_2epdf/v1/1g3lr_5f7_5fcortright.pdf
- Paul Romer, "Economic Growth" http://www.stanford.edu/~promer/EconomicGrowth.pdf
April 30: "Conservative" Central Bankers
Notes: Lecture Audio
Readings:
- Macroeconomics, review 10.3, review 12.4, 13, 14, 16.1-16.4.
- "Central Bank Consistency and Credibility: The Analytics"
May 2: The Long-Run Fiscal Situation
Notes: Lecture Audio
Readings:
- CBO, The Long-Run Fiscal Situation http://www.cbo.gov/doc.cfm?index=3521&type=0 http://delong.typepad.com/delongslides/2008/04/the-projected-r.html
- The "Golden Rule" and National Savings.
- How Fast Should an Economy Head for the “Golden Rule? Some Simple Math
Macroeconomics, 14.2, 14.3
Mock Applications Exam out: Apologies. This should have gone up on Friday, but for some reason was not copied over: http://www.j-bradford-delong.net/2008_pdf/101bpracticeexammay9.pdf
May 5: The Long-Run Fiscal Situation: Theory and Practice
Notes: Lecture Audio
Readings:
- CBO, The Long-Run Fiscal Situation http://www.cbo.gov/doc.cfm?index=3521&type=0 http://delong.typepad.com/delongslides/2008/04/the-projected-r.html
- From Solow to Ramsey
May 7: The Long-Run Fiscal Situation: Theory and Practice II
Notes: Lecture Audio; Solow and Ramsey
May 9: "Applications" Exam
May 12: Review
May 14: Review
May 16: FINAL EXAM 8-11 277 Cory
DROPPED AND REPLACED...
Applications (with Additional Theory)
Domestic Monetary and Fiscal Policies
M Mar 31: Stabilization Policy since WWII
- Macroeconomics, review 10.3, review 12.4, 13, 14.1, 16.1-16.4
W Apr 2: Should Conservatives Be Central Bankers? * Notes: Central Bankers: Stabilizers, Credible Inflation-Fighters, and Lenders of Last Resort * Central Bank Consistency and Credibility: The Analytics * Macroeconomics, review 13.6, review 13.7
F Apr 4: What happened this week in the macroeconomy?
M Apr 7: Looking Back at the Great Depression: What Went So Wrong?
- Macroeconomics, 16.3, 16.5
- Notes on the Great Depression
- Notes on Liquidity Traps
- Problem Set out (due Apr 14) Credit Channels
W Apr 9: Is There a Political Business Cycle?
- Macroeconomics, review 13.6
F Apr 11: What happened this week in the macroeconomy?
M Apr 14: U.S. Long-Run Budget Balance
- Notes: Fiscal Policy in the Long Run
- The "Golden Rule" and National Savings
- Macroeconomics, 14.2, 14.3
- Problem Set out (due Apr 21) The Aging of America
W Apr 16: "Fixing" Social Security
- Notes on Social Security
F Apr 18: What happened this week in the macroeconomy?
Growth and Distribution
M Apr 21: Productivity Speed-Ups and Slow-Downs
- Macroeconomics, review 5.2
- Notes: Understanding the Productivity Slowdown
- Notes: Understanding the Productivity Speed-up
- Growth Accounting
- Modeling the High-Tech Computer Revolution of the 1990s
- Problem Set 10 out (due Apr 28) Productivity Growth
W Apr 23: U.S. Income Distribution
- Notes: American Income Distribution
F Apr 25: What happened this week in the macroeconomy?
M Apr 28: European Youth and Structural Unemployment
- Macroeconomics, 16.5
- Notes: The Western European Macroeconomy
- Web Assignment out (due May 5) Behavioral Finance
Domestic and International Finance
W Apr 30: "Animal Spirits": Understanding the Stock and Real Estate Markets
- Notes: Animal Spirits
- On Robert Barro's (2005) "Rare Events and the Equity Premium" and T.A. Rietz's (1988) "The Equity Risk Premium: A Solution" http://delong.typepad.com/print/20070213_note_barro_rietz.pdf
- The Gordon Equation, Earnings Yields, and Stock Returns http://delong.typepad.com/sdj/2007/05/a_teaching_note.html
- Equity Premium Handout http://www.j-bradford-delong.net/Teaching_Folder/Econ_202b/Handouts/equity.pdf
- "Bubbles" Handout http://www.j-bradford-delong.net/teaching_folder/Econ_202b/Handouts/bubbles.pdf
F May 2: What happened this week in the macroeconomy?
M May 5: Global Imbalances
- Notes: Global Imbalances
- The International Financial Crises of the 1990s
- Simple Analytics for a Hard Dollar Landing
- Web Assignment out (due May 12) Managing Global Imbalances
W May 7: APPLICATIONS EXAM
Summary and Review
F May 9: What happened this week in the macroeconomy?
- Web Assignment out (due May 16) Feedback and Recommendations
M May 12: FINAL REVIEW
F May 16: FINAL EXAM 8-11
Comments