Presentation file and reading pack for our final topic is now available for download
Key readings are articles in the JEP symposium, contained in a separate 'JEP articles' folder.
EE432 2010: Topic 6 Materials
Lecture note and the reading pack for topic 6 is now available for download at:
As I mentioned, the key reading is the paper by Clarida et al, up until the part covered by the lecture note. Among other highly recommended readings (though not required) are
As I mentioned, the key reading is the paper by Clarida et al, up until the part covered by the lecture note. Among other highly recommended readings (though not required) are
- Blinder's "What can central bankers learn from academics and vice versa", from the perspective of someone who's been on both sides of the fence.
- Bernanke's "Inflation targeting: a new framework?" published 3 years before Thailand imported the idea, which we still use to this day.
- Woodford's survey article on the optimal monetary policy for the Handbook for Monetary Economics, which is the most up-to-date account of what the current research frontier is. This is quite advanced, so perhaps just skim through to get some general ideas.
Modern Bank Failures
Diamond-Dybvig tells us that deposit insurance should have prevented bank runs and bank failures. The US has been having the insurance system for decades, so what was new in 2007-2008?
Krugman's recent post
Krugman's recent post
Other commenters say that lessons from the 1930s are no longer relevant, because now we have deposit insurance. Um, shadow banking? That’s the point I keep trying to make: what happened to us in 2007-8 was that a large banking system had grown up, relying on repo and other forms of short-term borrowing rather than deposits, that wasn’t covered by New Deal-era protections and regulation. So what we had was the 21st-century version of a bank run; not crowds of people lining up at bank doors, but crowds of investors demanding haircuts on repo, which has the same effect.
EE432 2010: Topic 5 Materials and Problem sets
The lecture note and reference materials for topic 5 is here:
These attached articles are for reference only, but these are original papers that introduce this concept to monetary policy issues. The key reading is, as I mentioned in class, the relevant sections from Romer's book.
Copies of the problem sets are available here:
Both of these are due in the evening of April 21st (We have a makeup class in the evening).
These attached articles are for reference only, but these are original papers that introduce this concept to monetary policy issues. The key reading is, as I mentioned in class, the relevant sections from Romer's book.
Copies of the problem sets are available here:
Both of these are due in the evening of April 21st (We have a makeup class in the evening).
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