Econ 210a: Spring 2012: U.C. Berkeley: Question for April 25, 2012: The Great Divergence, the Great Moderation and the Great Recession:
Econ 210a: Spring 2012: U.C. Berkeley: Question for April 25, 2012: The Great Divergence, the Great Moderation and the Great Recession:
We have three topics for April 25, so try to sum up your thoughts on one--and only one of the three:
What, in your view, is right and what is wrong with Lant Pritchett's attempt to document and account for the rise in global relative inequality from 1800 to 1980?
Why didn't Raghu Rajan's fears about the dangers of increased "financial sophistication" have more purchase in economists' thought as of the mid-2000s?
What do we really know and not know about why the economy falls to pieces after a financial crisis?
Readings: April 25. The Great Divergence, the Great Moderation and the Great Recession:
Lant Pritchett (1997), "Divergence, Big Time," Journal of Economic Perspectives 11:3 (Summer), pp. 3-17. http://www.jstor.org/stable/2138181
Raghuram Rajan (2005), “Has Financial Development Made the World Riskier?” in Proceedings of Jackson Hole Symposium, pp. 313-369. Federal Reserve Bank of Kansas City. http://ideas.repec.org/a/fip/fedkpr/y2005iaugp313-369.html
Ben Bernanke (2004), “The Great Moderation,” Speech to a meeting of the Eastern Economic Association, Washington, DC (20 February). http://www.federalreserve.gov/boarddocs/speeches/2004/20040220/default.htm
Robert E. Hall (2010), “Why Does the Economy Fall to Pieces after a Financial Crisis?” Journal of Economic Perspectives 24, pp. 3-20. http://www.aeaweb.org/articles.php?doi=10.1257/jep.24.4.3
