Economics 202b, Part II: Relevant Macroeconomics Reading List

Geraldo Rivera is Upset at His Fox News "Colleagues"

links for 2009-04-17

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:

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: