October 28
The Value of Human(?) Capital
Scientists find that adding to a monkey's "human" capital will raise its income and status in the monkey's group.
Textbook References:
Pages 366-370 “Markets with only a Few Sellers”
Pages 414-416 “Human Capital”
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?”
Apr. 4
Hoover Did It!
Lee Ohanian argues that higher wages, which were paid to prevent unions from organizing, was an important cause of the Great Depression.
Textbook References:
Pages7-8 “Principle 4: People Respond to Incentives”
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”
Pages 118-121 “How Price Floors Affect Market Outcomes”
Pages 421-422 “Above-Equilibrium Wages: Minimum-Wage Laws, Unions, and Efficiency Wages”
Pages 629-631 “Unions and Collective Bargaining”
Jan. 31
Summers vs Obama
Before becoming economic advisor to Obama, Larry Summers wrote that unions are a cause of long-term unemployment. Obama claims that unions are part of the solution.
Textbook References:
Pages 32-33 “Why Economists’ Advice is not Always Followed”
Pages 421-422 “Above-Equilibrium Wages: Minimum-Wage Laws, Unions, and Efficiency Wages”
Pages 629-631 “Unions and Collective Bargaining”