October 26
The Public Plan, Again
Robert Samuelson, Paul Krugman, Richard Thaler and N. Greagory Mankiw discuss the proposed government health-insurance option.
Textbook References:
Pages 8-10 “Principle 6: Markets Are Usually a Good Way to Organize Economic Activity”Pages 10-12 “Principle 7: Governments Can Sometimes Improve Market Outcomes”
Chapter 15 “Monopoly”
Page 406 “Monopsony”
September 6
Unemployment Update
Unemployment is higher than the administration predicted.
Textbook References:
Pages 392-399 “The Demand for Labor”
Pages 399-400 “The Supply of Labor”
Pages 400-405 “Equilibrium in the Labor Market”
Chapter 28 “Unemployment”
Pages 778-787 “How Monetary Policy Influences Aggregate Demand”
Pages 787-793 “How Fiscal Policy Influences Aggregate Demand”
Pages 793-796 “Using Policy to Stabilize the Economy”
Pages 830-832 “Should Monetary and Fiscal Policymakers Try To Stabilize the Economy?
June 12
The Case Against a Minimum Wage Hike
The minimum wage is scheduled to increase in July, David Neumark argues that a recession is an especially bad time to increase the minimum wage.
Textbook References:
Pages 118-121 “How Price Floors Affect Market Outcomes”
Chapter 18 “The Markets for the Factors of Production”
Pages 627-629 “Minimum-Wage Laws”
May 12
Measuring Jobs Created or Saved
Congress passed a bill that requires the Council of Economic Advisors to report on the number of jobs saved or created by the stimulus package. It is an impossible task.
Textbook References:
Pages 392-399 “The Demand for Labor”
Pages 399-400 “The Supply of Labor”
Pages 400-405 “Equilibrium in the Labor Market”
Chapter 28 “Unemployment”
Pages 778-787 “How Monetary Policy Influences Aggregate Demand”
Pages 787-793 “How Fiscal Policy Influences Aggregate Demand”
Pages 793-796 “Using Policy to Stabilize the Economy”
Pages 830-832 “Should Monetary and Fiscal Policymakers Try To Stabilize the Economy?
May 4
Meltzer vs Krugman
Allan Meltzer is worried that the Fed’s easy money policy will lead to inflation. He is also worried that the Fed has lost its independence. Paul Krugman is worried about falling wages and the possibility of deflation.
Textbook References:
Pages 392-399 “The Demand for Labor”
Pages 399-400 “The Supply of Labor”
Pages 400-405 “Equilibrium in the Labor Market”
Pages 414-422 “Some Determinants of Equilibrium Wages”
Pages 648-649 “The Federal Reserve System”
Chapter 30 “Money Growth and Inflation”
Pages 778-787 “How Monetary Policy Influences Aggregate Demand”
Pages 793-796 “Using Policy to Stabilize the Economy”
Pages 830-832 “Should Monetary and Fiscal Policymakers Try To Stabilize the Economy?”
Feb. 6
Wage Deflation?
Mankiw responds to Krugman’s claim that wages are falling.
Textbook References:
Chapter 18 “The Markets for the Factors of Production”
Pages 537-541 “Correcting Economic Variables for the Effects of Inflation