Teaching

Created 8/24/2000
Go to Brad DeLong's Home Page

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I. Monetary Policy

Tuesday October 17: Inflation, Money Growth, and the Term Structure

• J. Bradford DeLong (1997), "America's Peacetime Inflation", in Christina Romer and David Romer. eds., Reducing Inflation: Motivation and Strategy (Chicago: University of Chicago Press).
• David Romer (1996), Advanced Macroeconomics, 9.1-9.3.

Thursday October 19: Dynamic Inconsistency and Monetary Policy

• David Romer (1996), Advanced Macroeconomics, 9.4-9.5
• Kenneth Rogoff (1985), "The Optimal Degree of Commitment to an Intermediate Monetary Target", Quarterly Journal of Economics 100 (November), 1169-1189.
• Alberto Alesina and Lawrence Summers (1993), "Central Bank Independence and Macroeconomic Performance", Journal of Money, Credit and Banking, Volume 25(2) (May), pp. 151-162.
• problem set 1 out

Tuesday October 24; Thursday October 26: Disinflation and Monetary Policy

• David Romer (1996), Advanced Macroeconomics, 9.6-9.8
• Laurence Ball (1997), "Disinflation and the NAIRU", in Christina Romer and David Romer. eds., Reducing Inflation: Motivation and Strategy (Chicago: University of Chicago Press), pp. 167-192.
  
• Laurence Ball (1999), "Efficient Rules for Monetary Policy" International Finance, 2:1, pp. 63-83

Tuesday October 31: Pathologies: Japan's Liquidity Trap and Europe's High Unemployment

• Olivier Blanchard and Lawrence Summers (1986), "Hysteresis and the European Unemployment Problem", NBER Macroeconomics Annual 1.
• Paul Krugman (1998), "It’s Baaaack! Japan's Slump and the Return of the Liquidity Trap", Brookings Papers on Economic Activity 2, pp. 137-205.
• problem set 2 out; problem set 1 back (solutions)

II. Fiscal Policy

Thursday November 2: Introduction to Fiscal Policy; Ricardian Equivalence

• David Romer (2000), Advanced Macroeconomics second edition, 11.1-11.3
• Robert Barro (1974), "Are Government Bonds Net Wealth?" Journal of Political Economy

Tuesday November 7: The Economic Analysis of Politics: Fiscal Policy

• David Romer (2000), Advanced Macroeconomics second edition, 11.4
• Robert Barro (1979), "On the Determination of the Public Debt," Journal of Political Economy
• problem set 3 out; problem set 2 due (solutions)
• A note from Julian di Giovanni on the difference between Barro and Romer

Thursday November 9: The Economic Analysis of Budget Deficits

• David Romer (2000), Advanced Macroeconomics second edition, 11.5-11.6
• Alberto Alesina and Guido Tabellini (1990), "A Positive Theory of Fiscal Deficits and Government Debt in a Democracy", Review of Economic Studies 57, pp. 403-14.
• David Romer (1997), "Misconceptions and Political Outcomes" (Cambridge: NBER).

Tuesday November 14: Delayed Stabilizations and Positive Analysis

• David Romer (2000), Advanced Macroeconomics second edition, 11.7-end
• Alberto Alesina and Allan Drazen (1991), "Why Are Stabilizations Delayed?" American Economic Review.
• problem set 4 out

III. Interlude

Thursday November 16: David Romer...

Tuesday November 21: SECTION MEETING DURING CLASS TIME

problem set 3 due (solutions)

IV. Financial Crises

Tuesday November 28: Financial Crises Caused by Unsustainable Government Policies

• Paul Krugman (1979), "A Model of Balance-of-Payments Crises", Journal of Money, Credit, and Banking 11, pp. 311-325

Thursday November 30: Crises Caused by Government Policies That Become "Incredible" (Britain 1992)

Maurice Obstfeld (1996), "Models of Currency Crisis with Self-Fulfilling Features", European Economic Review 40, 1037-1047.

[Optional] Maurice Obstfeld (1994), "The Logic of Currency Crises", Cahiers Economiques et Monetaires 43, pp. 189-213.

Tuesday December 5: Crises Caused by Structural Weaknesses (Mexico 1994-1995, East Asia 1997-1998)

• Paul Krugman (1998), "Balance Sheets, the Transfer Problem, and Financial Crises" (Cambridge: MIT).
• Paul Krugman (1999), "Analytical Afterthoughts on the Asian Crisis" (Cambridge: MIT).
• [Optional] Philippe Aghion, Philippe Bacchetta, and Abhijit Banerjee (2000), "Currency Crises and Monetary Policy in an Economy with Credit Constraints" (Cambridge: MIT).
• problem set 4 due (solutions)
• problem set 5 (optional) out...
• Mock exam out...

Tuesday December 12 180 Tan 2:00-3:30: Wrap-Up and Review

Thursday December 14, 12:30-3:30: 200 Wheeler FINAL EXAM; Final Exam Answers (first draft; may contain typos)

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Problem Sets

Problem Set 1: Monetary Policy I: Advanced Macroeconomics, problems 9.3, 9.5, 9.12

Problem Set 2: Monetary Policy II: Advanced Macroeconomics, problems 9.14, 9.15, 9.17

Problem Set 3: Fiscal Policy I: Advanced Macroeconomics second edition, problems 11.1, 11.4, 11.7

Problem Set 4: Fiscal Policy II: Advanced Macroeconomics second edition, problems 11.11 11.13, 11.14, 11.15

Problem Set 5: International Financial Crises

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Dropped From the Syllabus: Asset Market Puzzles

Tuesday November 28: The Equity Premium Puzzle

David Romer (1996), Advanced Macroeconomics, pp. 330-332

Phillippe Weil (1989), "The Equity Premium Puzzle and the Risk-Free Rate Puzzle", Journal of Monetary Economics Vol. 24:3, pp. 401-422.

Thursday November 30: The Stock Market Volatility Puzzle

John Campbell and Robert Shiller (1989), "The Dividend-Price Ratio and Expectations of Future Dividends and Discount Factors," Review of Financial Studies 1:3, pp. 195-228.

Andrei Shleifer (2000), Efficient Markets, pp. 1-52, 89-111.

problem set 4 due; problem set 5 out

Professor of Economics J. Bradford DeLong, 601 Evans
University of California at Berkeley; Berkeley, CA 94720-3880
(510) 643-4027 phone (510) 642-6615 fax
delong@econ.berkeley.edu
http://www.j-bradford-delong.net/