October 28
Is the Efficient Markets Hypothesis Kaput?
Jeremy Siegal argues that the current financial crisis has not discredited the efficient market hypothesis.
Textbook References:
Pages 606-607 “The Efficient Market Hypothesis”Pages 654-655 “The Financial Crisis of 2008”
October 24
A Defense of Insider Trading
Donald Boudreaux argues that insider trading is "impossible to police and helpful to markets and investors."
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”
Pages 606-607 “The Efficient Market Hypothesis”
October 23
How Harvard Economists Invest
Three Harvard economists explain their personal investment strategies.
Textbook References:
Pages 600-606 “Managing Risk”
October 14
Maskin on the Financial Crisis
Nobel laureate Eric Maskin discusses the financial crisis. He contends that economists did anticipate the crisis but that policymakers did not listen. He also provides a reading list on the subject.
Textbook References:
Pages 484-485 “Hidden Actions: Principals, Agents, and Moral Hazard”
Pages 601-603 “The Markets for Insurance”
Pages 642-643 “The Functions of Money”
Pages 649-658 “Banks and the Money Supply”
Pages 779-781 “The Theory of Liquidity Preference”
Pages 783-785 “Changes in the Money Supply”
September 24
Posner on Keynes
Richard Posner discusses why he became a Keynesian after reading The General Theory.
Textbook Reference:
Pages 609-610 “Market Irrationality”
Page 770 “The Origins of Aggregate Demand and Aggregate Supply”
Pages 779-781 “The Theory of Liquidity Preferences”
Pages 794-795 “The Case for Active Stabilization Policy”
September 20
Book Review
Mankiw reviews Robert Skidelsky’s new book, “Keynes: the Return of the Master.”
Textbook Reference:
Pages 609-610 “Market Irrationality”
Page 770 “The Origins of Aggregate Demand and Aggregate Supply”
Pages 779-781 “The Theory of Liquidity Preferences”
Pages 794-795 “The Case for Active Stabilization Policy”
September 19
Levine on Macro
David Levine accuses Paul Krugman of ignoring advances in modern macroeconomics.
Textbook References:
Pages 494-500 “Behavioral Economics”
Pages 606-610 “Asset Valuation”
Chapter 33 “Aggregate Demand and Aggregate Supply”
Chapter 34 “The Influence of Monetary and Fiscal Policy on Aggregate Demand”
Chapter 35 “The Short-Run Trade-off between Inflation and Unemployment”
Chapter 36 “Five Debates over Macroeconomic Policy”
September 17
Kocherlakota on Macro
Narayana Kocherlakota makes ten claims about the state of modern macroeconomics.
Textbook References:
Pages 494-500 “Behavioral Economics”
Pages 606-610 “Asset Valuation”
Chapter 33 “Aggregate Demand and Aggregate Supply”
Chapter 34 “The Influence of Monetary and Fiscal Policy on Aggregate Demand”
Chapter 35 “The Short-Run Trade-off between Inflation and Unemployment”
Chapter 36 “Five Debates over Macroeconomic Policy”