August 19

Blanchard on the Outlook

Olivier Blanchard notes that in previous banking crises, output does not return to its previous growth path. It remains below it, though the average growth rate returns to what it was.

Textbook References:

Pages 246-248 “The Fiscal Challenge Ahead”
Pages 581-582 “Some Important Identities”
Pages 550-554 “Economic Growth Around the World”
Pages 589-593 “Policy 3: Government Budget Deficits”
Pages 654-655 “The Financial Crisis of 2008”
Pages 740-742 “Three Key Facts About Economic Fluctuations”

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May 6

Is the White House bullying hedge funds?

Cliff Asness argues that the Obama administration’s attack on hedge funds is “the big lie writ large,” and is politically motivated.

Textbook References:

Pages 7-8 “Principle 4: People Respond to Incentives”
Page 237 “The Importance of Property Rights”
Pages 566-567 “Property Rights and Political Stability”

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Apr. 30

The Rule of Law – Not!

Mankiw fears that recent government actions may erode property rights.

Textbook References:

Pages 7-8 “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”
Page 237 “The Importance of Property Rights”
Pages 566-567 “Property Rights and Political Stability”

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Apr. 6

The Four Pillars of Sound Policy

Edward Glaeser worries that the “Washington Consensus” (fiscal restraint, the rule of law, free trade and privitazation) may be coming to an end.

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”
Chapter 3 “Interdependence and the Gains from Trade”
Pages 566-567 “Property Rights and Political Stability”
Pages 589-593 “Policy 3: Government Budget Deficits”

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Mar. 24

The Coming Slowdown in Potential Growth

The CBO projects slower than normal growth for next decade, partly because of slower growth in the labor force as the baby-boom generation retires.

Textbook Reference:

Chapter 25 “Production and Growth”

 

Dec. 27

Summers on the Obama Plan

There is a link to an editorial by Larry Summers that argues that stimulus spending should focus on investment rather than consumption.

Textbook Reference:

Chapter 25 “Production and Growth”
Pages 787-793 “How Fiscal Policy Influences Aggregate Demand”
Pages 793-796 “Using Policy to Stabilize the Economy”
Page 821 “Bernanke’s Challenges”
Pages 830-832 “Should Monetary and Fiscal Policymakers Try To Stabilize the Economy?

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Dec. 27

Summers on the Obama Plan

There is a link to an editorial by Larry Summers that argues that stimulus spending should focus on investment rather than consumption.

Textbook Reference:

Chapter 25 “Production and Growth”
Pages 787-793 “How Fiscal Policy Influences Aggregate Demand”
Pages 793-796 “Using Policy to Stabilize the Economy”
Page 821 “Bernanke’s Challenges”
Pages 830-832 “Should Monetary and Fiscal Policymakers Try To Stabilize the Economy?

Lindsey on Stimulus

Larry Lindsey prefers tax cuts to more government spending.

Textbook References:

Pages 787-793 “How Fiscal Policy Influences Aggregate Demand”
Pages 793-796 “Using Policy to Stabilize the Economy”
Pages 838-841 “Should the Government Balance its Budget?”