Topic 0:Getting in the Mood for Macro!

Pre-Course Readings (These are the readings you should do prior to week 1.) Goal: To frame the issues of the course via a few short articles from the popular press. We will explore many of the details of these articles throughout the course.

I.Overview of Macroeconomics

  1. Size Does Matter: In Defense of Macroeconomics* (Paul Krugman: 7/9/1998)
  2. Baby Sitting the Economy* (Paul Krugman: 8/13/1998)

II.2008 Financial Crisis: The Beginning

  1. Wall Street’s Bad Dream(Economist: 9/20/2008)
  2. Bad or Worse (search bad worse)(Economist: 10/11/2008)
  3. Diamond and Kashyap Primer*(Erik’s web page)

III.2008 Financial Crises: The Aftermath

  1. What If?(Economist: 9/12/2009)
  2. A Joyless Recovery (on web page)(Economist: 10/29/2009)
  3. When Good News Is Bad News(Economist: 12/12/2009)
  4. What Might Cause a Two-Track Recession* (Casey Mulligan: 5/18/2010)
  5. Is it Time to Start Talking About a Double-DipRecession? It Just Might Be (Fortune: 6/13/2011)

IV.The (New) Link Between Governments and Markets

  1. When Fortune Frowned (Economist: 10/11/2008)
  2. Taming the Beast(Economist: 10/11/2008)

V.Macroeconomic Modeling

  1. Big Questions and Big Numbers(Economist: 7/15/2006)
  2. What the World Bank Knows(Economist: 1/13/2007)

VI.The State of Modern Macroeconomics

  1. A Critical Overview
  1. What Good Are Economists Anyway?(BusinessWeek: 4/16/2009)
  1. A Civil Debate
  1. The Other Worldly Philosophers(Economist: 7/18/2009)
  2. Efficiency and Beyond(Economist: 7/18/2009)
  3. In Defense of the Dismal Science (by R. Lucas)(Economist: 8/8/2009)
  1. A Less Civil Debate
  1. Krugman: How Did Economists Get it So Wrong* (NY Times Mag:9/2/2009)
  2. Cochrane’s Response to Krugman *(Erik’s Web Page)

Topic 1:Introduction to Macro Data

Chapters 1, 2, and 3.5 from Text.

  1. The Difficulty in Measuring Economic Variables
  1. Difficulty in Measuring Prices
  1. Feeling the Heat(Economist: 6/24/2006)

B.Difficulty in Measuring Output/Output Growth

  1. Divining the Future(Economist: 1/15/2005)
  2. Botox and Beancounting(Economist 4/30/2011)
  3. Diagnosing Depression(Economist: 1/3/2009)
  1. Difficulty in Measuring Unemployment
  1. Where Are the Workers?(Economist 2/12/2011)

D.Difficulty Measuring Well Being

  1. Measuring What Matters(Economist: 9/19/2009)

II.The Yield Curve

  1. Dangerous Curve(Economist: 4/30/2010)

Topic 2:Production, the Labor Market and Economic Growth

Chapters 3, 6.1 and 6.3 (skim 6.2 - do not worry about the math) from Text

I.Production and Labor Markets

  1. The Employment Situation—May 2011*(www. bls.gov 6/3/2011)
  2. The Land of Leisure(Economist: 2/4/2006)
  3. The Quiet Americans(Economist: 6/27/2009)

II.Growth in the “New” Economy

  1. Productivity on Stilts (Economist: 6/10/2000)
  2. Performing Miracles (Economist: 6/17/2000)
  3. The New “New Economy”(Economist: 9/13/2003)
  4. A Graduation Gift for College Seniors: Jobs(Bloomberg 5/9/2011)

III.Productivity and Regulation

  1. Taped(Economist: 10/7/2006)
  2. Red Tape Rising(Economist 1/22/2011)

Topic 3:Consumption, Saving, and Investment

Chapters 4.1, 4.2 and Appendix 4.A from Text

I.Consumption/Savings

  1. A Future Meltdown? (Economist: 9/4/2004)
  2. The End of the Affair(Economist: 10/22/2008)
  3. Dropping the Shopping(Economist: 7/25/2009)
  4. The Nature of Wealth(Economist: 10/10/2009)

II.Investment

  1. From Investment Boom to Bust(Economist: 3/3/2001)
  2. Desperately Seeking a Cash Cure(Economist: 10/22/2008)

Topic 4:Fiscal Policy

Chapter 15 from Text

  1. Government Deficits
  1. Coping With Surpluses(Economist: 5/20/2000)
  2. The Big Sweat(Economist: 6/13/2009)
  3. All Economics is Local(Economist 11/20/2010)
  4. The Real Fight Begins(Economist 4/9/2011)
  1. Taxes
  1. The Tax and Spending Compromise/The Tax Deal -

A Second Stimulus? by Gary Becker and Richard Posner*(12/26/2010)

  1. The New Voodoo*(Paul Krugman: 12/30/2010)

IV. Fiscal Policy in Action

  1. Why the War Against Terror Will Boost the Economy* (Robert Barro: 11/5/2001)
  2. What’s Wrong with America’s economy?(Economist 4/30/2011)

Topic 5: Introduction into Money/Federal Reserve Policy

Chapters 7, 14.1 and 14.2 fromText

I.Monetary Basics

  1. Who Needs Money(Economist: 1/22/2000)
  2. Putting the Air Back In(Economist: 11/1/2008)

II.Monetary Policy In Action: Part 1

  1. A Blunt Tool(Economist: 6/30/2001)
  2. The Doctors’ Bill(Economist: 9/27/2008)

Topic 6: Inflation and Unemployment in the Short Run (Putting it All Together)

Chapters 8-11 from Text

I.A Look at Recessions

  1. The Kiss of Life?(Economist: 4/21/2001)
  2. The Geography of a Recession(Economist: 2/9/2008)

III.Should We Care About Deflation?

  1. Hear that Hissing Sound? (Economist: 5/17/2003)
  2. The Curse of Defeatism(Economist: 11/28/2009)

IV.Shifts in Aggregate Supply: Technology Shocks

  1. A Thinkers' Guide (Economist: 4/1/2000)

V.Shifts in Aggregate Supply: Oil Shocks

  1. Counting the Cost(Economist: 8/27/2005)
  2. A Rhetorical Blowout(Economist 5/14/2011)

Topic 7:Policy Rules

Chapter 12 and 14.3 from Text

I.The Inflation/Unemployment Tradeoff

  1. What Happened to the Phillips Curve*(Brad Delong)
  2. Curve Ball(Economist: 9/30/2006)

II.Monetary Rules (see web page for online locations)

  1. Money Rules(Economist: 10/24/1998)
  2. Federal Reserve Board: Remarks By Governor Edward Gramlich – 9/27/98 *(Discussion of How the Fed Makes its Monetary Policy Decisions)
  3. Federal Reserve Board: Remarks By Chairman Ben Bernanke - 5/25/10 * (Central Bank Independence, Transparency, and Accountability)
  4. What Goes Around(Economist: 6/9/2007)

III.Putting it all Together

  1. Between Bears and Hawks(Economist: 5/13/2006)
  2. Anatomy of a Hump(Economist: 3/10/2007)

Topic 8:Special Topics

I.The 2008 Financial Crisis Revisited

  1. The Financial Crisis and the Bailout: A Primer (Steve Kaplan)*Erik’s web page
  2. The Financial Crisis: Where Do We Go Now? (John Cochrane)*Erik’s web page
  3. Damage Assessment (Economist: 5/16/2009)

II.Inflation or Deflation?

  1. Old Enemy Rears its Head(Economist: 5/24/2008)
  2. Depressing Times(Economist: 11/15/2008)
  3. Everyday Higher Prices(Economist 2/26/2011)
  1. Monetary Policy In Action: Part II
  1. The Hedge Fund of Foggy Bottom(Economist: 5/2/2009)
  2. This Way Out(Economist: 6/6/2009)
  3. Put Out(Economist: 7/4/2009)
  4. Narrow Success, Broad Concerns(Economist: 9/5/2009)
  5. As ‘Junk’ Bonds Fall, Some Blame Fed*(WSJ: 6/10/2011)

III.Praise for Bernanke

  1. The Very Model of a Modern Central Banker(Economist: 8/29/2009)

IV.Housing and the Macroeconomy

  1. The Darkest Hour(Economist 5/21/2011)
  2. Home Truths(Economist 3/5/2011)

V.Quantitative Easing 2

  1. The Bernanke Code(Bloomberg 11/8/2010)
  2. The New Malaise and How to End It*(WSJ 11/8/2010)

Topic 9:The International Economy

Chapter 5 and 13 from Text

  1. Trichet the Intransigent(Economist: 5/14/2011)
  2. Geithner’s Bold Push for a Stronger Yuan (Bloomberg: 10/18/2010)
  3. Scarce Talent, Rising Wages, Balky Clients(Bloomberg 5/30/2011)