Revised Schedule for Econ 101b: Post-Spring Break
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: Why Is Asia Gambling on Bretton Woods II?
Notes:
Readings: Barry Eichengreen,"China's Exchange Rate Regime: The Long and Short of It" http://www.econ.berkeley.edu/~eichengr/research/short.pdf
- Problem Set Out: Managing Global Imbalances
April 18: Long-Run Growth Revisited: Endogenous Growth I
Notes:
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 21: Long-Run Growth Revisited: Endogenous Growth II
Notes:
Readings:
Problem Set Out
April 23: Long-Run Growth Revisited: Endogenous Growth III
April 25: Current Situation Update
Problem Set Out
April 28: "Conservative" Central Bankers
Notes:
Readings:
Macroeconomics, review 10.3, review 12.4, 13, 14, 16.1-16.4.
April 30: The Monetary Transmission Mechanism
Notes:
Readings: Macroeconomics, 16.3, 16.5. "Notes on the Great Depression." "Notes on Liquidity Traps"
Problem Set out: credit and other channels
May 2: Permanent Income and Barrovian Equvalence
May 5: Social Security
Notes:
Readings: The "Golden Rule" and National Savings. Macroeconomics, 14.2, 14.3
Problem Set out: the aging of america
May 7: The Long-Run Fiscal Situation
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
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