TTh 11-12:30
PROLOGUE:
April 2: THE QUANTITY THEORY OF MONEY:
- Hawtrey, "Public Expenditure and the Demand for Labour" http://tinyurl.com/dl20090311f
- Hicks, "Mr. Keynes and the 'Classics': A Suggested Interpretation" http://www.jstor.org/stable/pdfplus/1907242.pdf;
Sections: Week of April 6: Review Problem Set 1
April 7: FROM THE QUANTITY THEORY TO IS-LM AND BEYOND:
- Samuelson and Solow, "Analytical Aspects of Anti-Inflation Policy" http://tinyurl.com/dl20090311a
- Friedman, "The Role of Monetary Policy" http://www.jstor.org/stable/pdfplus/1831652.pdf
- Friedman, "Comment on the Critics" http://tinyurl.com/dl20090311d
April 9: THE ORIGINS OF FINANCIAL CRISES
- Kindleberger, ch. 15 "Financial Crises" of A Financial History of Western Europe
Sections: Week of April 13: Review Problem Set 2
THE CURRENT CRISIS: BACKGROUND:
April 14: LIQUIDITY, DURATION, RISK, AND BANK RUNS:
- Douglas Diamond and Philip Dybvig (1983), "Bank Runs, Deposit Insurance, and Liquidity", Journal of Political Economy http://www.jstor.org/stable/1837095.
April 16: CREDIT CRUNCHES AND ECONOMIC ACTIVITY:
- Ben Bernanke and Mark Gertler (1989), “Agency Costs, Net Worth, and Business Fluctuations,” American Economic Review http://links.jstor.org/sici?sici=0002-8282(198903)79:1%3C14:ACNWAB%3E2.0.CO;2-U&origin=repec.
Sections: Week of April 20:
- Carmen Reinhart and Kenneth Rogoff (2008a), "Banking Crises: An Equal Opportunity Menace," NBER Working Paper no. 14587 (December) http://www.nber.org/papers/w14587.pdf
- Carmen Reinhart and Kenneth Rogoff (2008b), "Is the 2007 U.S. Subprime Financial Crisis so Different? An International Historical Comparison," American Economic Review 98 (May) http://www.economics.harvard.edu/faculty/rogoff/files/Is_The_US_Subprime_Crisis_So_Different.pdf
April 21: BUBBLES, CRISES, AND MONETARY POLICY:
- Franklin Allen and Douglas Gale (2000), "Bubbles and Crises," Economic Journal 110:460 (Jan.) http://www.jstor.org/stable/pdfplus/2565656.pdf
- Michael Bordo and Olivier Jeanne (2002), "Monetary Policy And Asset Prices: Does 'Benign Neglect' Make Sense?," International Finance http://www.nber.org/papers/w8966.pdf
April 23: THE EAST ASIAN FINANCIAL CRISIS OF A DECADE AGO:
- Morris Goldstein (1998), "The Asian Financial Crisis: Causes, Cures and Systemic Implications" (Online reading only; printing not permitted) http://bookstore.petersoninstitute.org/book-store/22.html
- Paul Krugman (1999), "Analytical Afterthoughts on the Asian Crisis" http://www.sfu.ca/~kkasa/krugman1.pdf
- Paul Krugman (1998), "What Happened to Asia?" http://web.mit.edu/krugman/www/DISINTER.html
Sections: Week of April 27: Review Problem Set 3
THE CURRENT CRISIS: ORIGINS AND DEVELOPMENT:
April 28: THE SUBPRIME CRISIS:
- Martin Baily, Robert Litan and Matthew Johnson (2008), "The Origins of the Financial Crisis" http://www.brookings.edu/~/media/Files/rc/papers/2008/11_origins_crisis_baily_litan/11_origins_crisis_baily_litan.pdf
- Claudio Borio (2008), "The Financial Turmoil of 2007-?" http://www.bis.org/publ/work251.pdf?noframes=1
April 30: THE CREDIT CRUNCH:
- Markus Brunnermeier (2009), "Deciphering the Liquidity and Credit Crunch 2007-2008," Journal of Economic Perspectives http://www.princeton.edu/~markus/research/papers/liquidity_credit_crunch.pdf
Sections: Week of May 4: Review Problem Set 4
May 5: THE EFFECT OF LEVERAGE:
- David Greenlaw, Jan Hatzius, Anil Kashyap, and Hyun Song Shin (2008), "Leveraged Losses: Lessons from the Mortgage Meltdown" http://faculty.chicagogsb.edu/anil.kashyap/research/MPFReport-final.pdf.
THE CRISIS: CURES:
May 7: THE SCANDINAVIAN MODEL AND OTHERS:
- Lars Jonung, Jaako Kiander and Pentti Vartia, "The Great Financial Crisis in Finland and Sweden: The Dynamics of Boom, Bust and Recovery" http://ec.europa.eu/economy_finance/publications/publication13551_en.pdf.
- Gauti Eggertson and Michael Woodford (2003), "The Zero Bound on Interest Rates and Optimal Monetary Policy"
May 12: THE GREAT DEPRESSION:
- James Butkiewicz (1995), "The Impact of a Lender of Last Resort in the Great Depression: The Case of the Reconstruction Finance Corporation," Explorations in Economic History http://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%236796%231995%23999679997%23311437%23FLT%23&_cdi=6796&_pubType=J&_auth=y&_acct=C000059607&_version=1&_urlVersion=0&_userid=4420&md5=35aaa48a79aa575b3c81ba53bec39b8e
- William Keeton (1992), "The Reconstruction Finance Corporation: Would it Work Today?" http://www.kansascityfed.org/PUBLICAT/ECONREV/EconRevArchive/1992/1q92keet.pdf.
May 14: SUMMING UP:
May 19: 8-11 AM: FINAL EXAM
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