suiPA 974 Section 001 (Fall 2010) Monetary Policy and Financial Regulation in a Globalized Economy
PA 974, Section 001: Monetary Policy and Financial Regulation in a Globalized Economy
This site provides resources for students in PA 974
at the University of Wisconsin,
Madison for Fall 2010 Semester
Source: Council of Economic Advisers, Economic Report of the President, 2010.
Syllabus |
Important Dates |
Downloadable Course Materials and Information Sources |
Robert M. LaFollette School of Public Affairs |
Department of
Economics
LECTURE: MW 11-12:15, 223 Ingraham
Instructor
Professor Menzie Chinn
Office Hours: MW4-5
Office: 7418 Social Sciences Bldg.
Phone: (608) 262-7397
email:
mchinn at lafollette.wisc.edu
PA974 Syllabus in PDF file.
This course will cover the basics of monetary policy, including how the money supply is controlled, the role of the banking system, and the implications for analyzing macroeconomic fluctuations. The course will also address the basics of asset pricing. A portion of the course will address the analysis and implications of financial regulation. Some discussion of how monetary policy and financial regulation is conducted in emerging market and developing economies will be included.
Prerequisites: PubAffr 854, Econ 302, or equivalent.
- Class cancelled, Monday, 12/13.
- Extra class on Monday, 12/6, from 12:30-1:45 in 5231 Social Sciences.
- Term paper: Due Friday, 12/17 (electronically).
Downloadable Course Materials
- Lecture 1 (9/8) [link]
- Lecture
6 (9/27) 7 (9/29) [link]
- Lecture 8 (10/4) [link]
- Problem Set 1 (due 10/11) [link]
- K. Kucko and M. Chinn, "The Predictive Power of the Yield Curve across Countries and Time," mimeo (September 2010) [PDF]
- Problem Set 1 Ansswers (due 10/11) [link]
- Lecture 15 (10/27) [link]
- Lecture 16 (10/27) [link]
- Lecture 17 (11/1) [link]
- Lecture 18 (11/8) [link]
- Jiang Wang, "Notes on CAPM" [link]
- Problem Set 2 (due 11/10) [link]
- Lecture 19 (11/10) [link]
- Problem Set 2 Answers(due 11/10) [link]
- Term Paper Assignment [link]
- Taylor Rules [link]
- Ben Bernanke, Alan Blinder, "Credit, Money, and Aggregate Demand," American Economic Review 78(2) (May, 1988), pp. 435-439. [link]
- Ben Bernanke, Mark Gertler, Simon Gilchrist, "The Financial Accelerator and the Flight to Quality," Review of Economics and Statistics, 78(1)(Feb., 1996), pp. 1-15. [link]
- Lecture 23 (11/24) [link]
- Problem Set 3 (due 12/8) [link]
- Lecture 24 (11/29) (from Jeffrey Frankel) [link]
- Jeffrey Frankel, "Monetary policy in emerging markets: A survey," NBER Working Paper No. 16125. [link]
- Problem Set 3 Answer Key (due 12/8) [link]
Required Readings
- ISLM: Notes on IS-LM [link]
- PCO: Notes on Transactions and Portfolio Crowding Out [link]
- AD-AS: Notes on Aggregate Demand/Aggregate Supply [link]
- EHTS: Notes on Expectations Hypothesis of Term Structure [link]
- Asset Prices: Notes on Present Value Calculations and Asset Markets [link]
- EMH: Notes on News and the Efficient Market Hypothesis [link]
- BBS: Notes on Bank Balance Sheets [link] (same as lecture 17).
- MSP: Notes on Money Supply Process [link]
- Ru: Glenn Rudebusch, “The Fed’s Monetary Policy Response to the Current Crisis,” FRBSF Economic Letter 2009-17, May 22, 2009. [link]
- Ham.: James Hamilton, “Concerns about the Fed's New Balance Sheet, in The Road Ahead for the Fed,” edited by John D. Ciorciari and John B. Taylor, Stanford: Hoover Institution Press, 2009. [link]
- CC-LM: Notes on CC-LM Model; see Lecture 23 (11/24) [link]
- EMI: Notes on Monetary and Financial Policy in Emerging Markets
- GHKS: David Greenlaw, Jan Hatzius, Anil K Kashyap, Hyun Song Shin, “Leveraged Losses: Lessons from the Mortgage Market Meltdown,” paper presented at US Monetary Policy Forum Conference, February 29, 2008. [link]
- Br: M. Brunnermeier, Deciphering the Liquidity and Credit Crunch, 2007-2008,” Journal of Economic Perspectives 23(1) (Winter 2009). [link]
- CJS: J.D. Coval, J. Jurek, E. Stafford, “The Economics of Structured Finance,” Harvard Business School Working Paper 09-060. Published Journal of Economic Perspectives 23(1) (Winter 2009). [link]
- DFP: Mathias Dewatripont, Xavier Freixas, and Richard Portes, editors, Macroeconomic Stability and Financial Regulation: Key Issues for the G20 (CEPR, 2 March 2009), pp. 91- . [link]
- EL1: D.J. Elliott. “Financial reform: Now it’s up to the regulators” (Washington, D.C.: Brookings Institution, July 12, 2010). [link]
- El2: D.J. Elliott, “Basel III, the banks, and the economy” (Washington, D.C.: Brookings Institution, July 23, 2010). [link]
News Reports and Additional Optional Readings
- Gary Gorton, "The Panic of 2007," paper presented at 2008 Jackson Hole conference [link]
- "Credit default swaps: Heading towards a more stable system," Deutsche Bank (Dec 2009). [link]
- IMF, "Will It Hurt? Macroeconomic Effects of Fiscal Consolidation," Chapter 4 in World Economic Outlook (October 2010).
- A. Alesina, "Fiscal Adjustments: Lessons from Recent History," paper presented at ECOFIN meeting (April 15, 2010).
- Todd Keister and James McAndrews, "Why Are Banks Holding So Many Excess Reserves?" FRBNY Staff Report 380 (July 2009)
- Interactive Yield Curve
- NBER, Business Cycle Dating Committee, National Bureau of Economic Research (Sep. 20, 2010).
- Financial Crisis Inquiry Commission A bipartisan commission.
- Congressional Oversight Committee Conducts oversight of financial rescue activities.
- Russell and Carter, "How the Giants of Finance Shrank, Then Grew, Under the Financial Crisis," NYT, 13 Sep 2009.
- Menzie Chinn and Jeffry Frieden, "Reflections on the Causes and Consequences of the Debt Crisis of 2008," La Follette Policy Report 19(1) (Fall 2009): 1-5. [pdf].
- P. Cohen, Ivory Tower Unswayed by Crashing Economy, NYT (5 March 09).
- P. Swagel, 2009, "The Financial Crisis: An Inside View," paper presented at the Brookings Panel on Economic Activity, March 2009
- The Cavalry of Commerce, Economist, March 10th, 2009
- Brunnermeier, et al., "The Fundamental Principles of Financial Regulation," Geneva Reports on the World Economy No 11.
LI>A. Kashyap, R. Rajan, J. Stein, "Rethinking Capital Regulation"
- U.S. Treasury, "Financial Regulatory Reform; A New Foundation"
- Kiff et al., "Credit Derivatives: Systemic Risks and Policy Options," IMF Working Paper 09-254 (Nov. 2009).
Tracking the Crisis and Recession
News Sources
Weblogs
Economics and Economic Policy Links
International Organizations
U.S. Government Agencies
Current and Historical Data
- Note: IMF, International Financial Statistics, and World Bank, World Development Indicators, available from DISC.
- St. Louis Fed economic database Thousands
of time series on economic activity, in an easily downloadable form.
- Economic Indicators Many Department of Commerce economic series, all in one place.
- White House Economic Briefing Room Contains
current economic data.
- Economic Indicators Publication of CEA and Congressional Joint Economic Committee contains
recent economic data.
- Bureau of Economic Analysis, Dept. of Commerce Data on GDP and components (the national income and product accounts) as well as other macroeconomic data.
- Bureau of the Census, Dept. of Commerce Data on the characteristics
of the US population as well as of US firms.
- Bureau of Labor Statistics, Dept. of Labor Data on
wages, prices, productivity, and employment and unemployment rates.
- Energy Information Agency, Dept. of Energy Data on
on energy (electricity, gas, petroleum) production, consumption and prices.
- Statistical Abstract of the US
A compilation of statistics about the US, from government and nongovernment sources.
- Bank for International
settlements Effective Exchange Rate Indices.
- Economic Report of the President, various years. The back portion of
this annual publication contains about 70 tables of government economic data.
- NBER Data Specialized economic databases created by
economists associated with the National Bureau of Economic Research.
- NBER listing of economic releases Compendium of links to economic releases, and archived releases.
- Pacific Exchange Rate Service.
- Federal Reserve Board data Monetary, financial and output data
collected by the Nation's central bank.
- Penn World Tables Annual GDP and other data for over a hundred countries, expressed
in dollars, after adjusting for differing price levels.
Other
PA 974-001 Monetary Policy and Financial Regulation in a Globalized Economy / UW Madison / mchinn@lafollette.wisc.edu / 6 December 2010