Policy Responses to the Great Recession. Links here.
Nice reading list!
Don’t know whether you have room, but consider the following….
Under 3, why not
Philip Swagel, “The Financial Crisis: An inside view” Brookings Papers on Economic Activity, forthcoming.
and in the classroom, consider
Mack, John. 2009. Inside the Bunker: CEO John Mack on Saving Morgan Stanley. Webcast and case October 14. http://knowledge.wharton.upenn.edu/article.cfm?articleid=2357.
Under 4, consider
Honohan, Patrick and Daniela Klingebiel, The fiscal cost implications of an accommodating approach to banking crises, Journal of Banking & Finance, vol. 27, no. 8, 2003, 1539-1560.
Under 6.1, a useful perspective might be
Laurence Ball, Douglas W. Elmendorf, N. Gregory Mankiw, The Deficit Gamble, Journal of Money, Credit and Banking, 1998, Vol.30(4), 699-720.
Finally, do you want to put into perspective the economic cost and fiscal cost of this financial crisis compared to other crises? There’s a couple of more recent IMF papers on this of late, as well as work by Reinhart and Rogoff.
On IS/ LM
Let us try to probe test the maths that Keynes did not write.
An homogeneous linear function and:
The only essential difference is that investment spending now depends on the interest rate. The
coefficient b is the interest sensitivity of investment. Since income now depends on interest rates,which is endogenous, then solving equations (1)-(8) yields an equation of a line.
Income dispersion index
Fixed private investment
Difficult to see much linearity in the results and yet the Fed funds rates are at lowest
And yet M2 M3 have been rising for quite a while
Could it be a better applicable theory,when BOP,IS,LM,employment are either in equilibrium or close to equilibrium?
A theory close to Better smoke a good cigar in 1st class than a cigarette butt in second class?
Simon van Norden: Excellent suggestions. I did assign Swagel’s piece in the Spring (and in fact Phill Swagel came and talked to my master’s level course!).
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