Announcements!
Open Announcements in New Window.
4/26/10: I will have pre-exam office hours 1:30 - 5 pm on Tuesday 4/27.
4/15/10: Here is the solution to the rational expectations problem on Test 2: Solution.
4/13/10: Papers for upcoming classes:
Monetary
Policy by Committee: Why and How? Blinder
Learning
and Bandwagons in Monetary Policy Committees Chappell et al.
An
Econometric Model of Monetary Policy Decision-Making with
Applications to the United Kingdom and Sweden Chappell et
al.
4/6/10: The upcoming test covers: International Economics (ABC Chapters 5 and 13), Prof. Chappell's Recession paper, steady inflation and the time inconsistency problem, the Cagan model and adaptive and rational expectations, solving rational expectations problems, the Lucas model, and Plosser on Real Business Cycle models.
4/6/10 I have posted a handout for Romer Chapter 9.
Handount on Efficiency Wages (Romer Chapter 9)
4/4/10: I have posted problem set solutions:
3/30/10: I have posted a new handout for Romer Chapter 6 on New Keynesian models:
Handout on Romer Chapter 6 on New Keynesian Economics
I have posted a copy of last Test 2 from 2009. Notice that we have not yet covered "efficiency wages" so that question will not be relevant for next week's test.
3/29/10:I have decided to delay the due date for the problem set until 4/1. This is partly because of some confusion over several points.
To clarify at least a bit:
In Problem 1, t (appearing in the equation for the money supply process) should be treated as a variable. It is also the time subscript, but the variable takes the same value as the subscript.
In Problem 2, I failed to mention that vt should be treated as a white noise shock (mean zero).
3/25/10: I have posted a handout of the Plosser article on real business cycles:
Handout on Plosser's Exposition of Real Business Cycle Models
Also, I have posted a question on health care policy on the Facebook Discussion Group.
3/22/10: Solution to problem worked in class on 3/18 (Cagan model with rational expectations):
Solution to Problem on Cagan Model with Rational Expectations
3/18/10: I have posted handouts related to the reading on the Lucas model:
Handout on the
Signal Extraction Problem
Handout on the Lucas
Monetary Misperceptions Model
The reading is: Robert Lucas, “Some
International Evidence on Output-Inflation Tradeoffs,” American Economic
Review, 63 (June 1973) pp. 326-334.
3/18/10: I have posted a quiz in Blackboard due on 3/30 at 12:30 PM. The quiz covers readings listed in my 2/22 announcement, below. Also the following problem assignment is due in class on 3/30:
Rational Expectations Problem Assignment
3/14/10: I have added two handouts for this week's class to the handouts page (and below):
McCallum Chapter 7 Cagan Model Example
McCallum Chapter 8 Rational Expectations
3/3/10: I have made some changes in the syllabus to reflect our current progress (with more changes likely to come). I have also posted new handouts on the Handouts Page.
2/23/10: I've added two more articles (by Barro and Krugman) to the bottom of the list in yesterday's announcement.
2/22/10: I have revised the schedule in the syllabus to reflect our progress. Also, please see the WSJ articles listed in the schedule of the syllabus for 2/23, also copied below. I have posted a Facebook topic related to these readings. Please participate!
Recession!
Firms Race To Regain Control Over Inventories
WSJ, 2/9/2009
Growth Hits 6-Year High
WSJ, 1/30/10
Phelps
and Prescott on the Stimulus and the Recession
The Week, 2/20/2009
Charlie
Evans on Modeling Financial Shocks in Macroeconomics
Speech, 9/19/2008
For Fed, Big Test Will Be When to Turn Off the Money Pump
WSJ, 4/20/2009
The Coming Deficit Disaster
WSJ, 11/21/2009
The
Stimulus Bill
WSJ, 2/17/2009
All Clunkered Out
WSJ, 8/23/09
Federal Intervention Pits 'Gets' vs.
'Get-Nots'
WSJ, 6/15/09
Stimulating thoughts, 3rd quarter edition
Krugman, NYT, 10/30/2009
An Alternative Stimulus Plan
- Boskin
WSJ, 11/18/2009
Why
No One Expects a Strong Recovery
WSJ, 11/20/2009
The Stimulus Evidence One Year On
(Barro)
WSJ, 2/23/10
Krugman on Stimulus:
Part
I Part
II Part
III
2/18/10: Test 1 grades have been posted in Blackboard.
2/7/10: For test study, you might want to look at Test 01 from Spring 2009.
2/2: I've added an article. Please read these three articles and then comment on the Facebook Discussion Group:
Who is Greedy?
Would
You Pay $103,000 for This Arizona Fixer-Upper?
WSJ, 1/3/09
American Dream
2: Default, Then Rent
WSJ, 12/10/09
Until
Medical Bills Do Us Part (Kristoff)
NYT, 8/29/09
1/28: Since Wall Street Journal Subscriptions are in, I'll suggest that you read these for 2/2:
Would You Pay $103,000 for This Arizona Fixer-Upper?
WSJ, 1/3/09
American Dream 2: Default, Then Rent
WSJ, 12/10/09
11/23: You may join the Econ727 Facebook Group at any time.
11/09: The syllabus for Spring 2010 is NOT complete. However, I have made textbook selections and you might be able to find cheap used copies if you buy sooner rather than later.
Textbook: I will suggest that you purchase two books. First, get a used copy of Macroeconomics, 5th edition, by Abel-Bernanke, or 6th edition, by Abel-Bernanke-Croushore. The 5th edition is cheaper and perfectly adequate. You should also get a copy of Advanced Macroeconomics, by Romer. Either the 2nd or 3rd editions are fine (there is not much difference in either price or content). ISBN numbers are below:
Abel-Bernanke (5th) ISBN Number: 0321162129
Abel-Bernanke-Croushore (6th) ISBN Number: 032141554x
Romer (2nd) ISBN Number: 0072318554
Romer (3rd) ISBN Number: 0072877308
Inexpensive used copies of these textbooks can be found at Amazon.com or Abebooks.com.