G11 - Week 18 - Day 2

In-class work

1. Phillips Curve questions?
2. Questions for the comments
1. How important is economic growth for an economy?
2. How important is economic growth morally?
3. Do you think it has increased or decreased in the past?
4. Do you believe it will increase or decrease in the future?
5. What are all the causes of economic growth you can think of?
3. Economic Growth in the Short-run and Long-run
4. Marginal University Economic Growth
1. Introduction to the Solow Model
2. Physical Capital and Diminishing Returns
3. The Solow Model and the Steady State
4. Human Capital and Conditional Convergence
5. The Solow Model and Ideas
6. The Economics of Ideas
7. Patents, Prizes, and Subsidies
8. TED Talk: How Ideas Trump Crises
9. The Idea Equation
5. From Tyler Cowen
1. On Value, the Crusonia Plant, and “Wealth Plus”

Ongoing Country Information

1. Figure out unemployment rates
2. Labor participation rates
3. Causes of the above?
4. What are the inflation rates?

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Currently Reading

Blog - My End-of-the-World Bet with Eliezer Yudkowsky, by Bryan Caplan

Blog - An Economy for the 99%

- Since 2015, the richest 1% has owned more wealth than the rest of the planet.
- Eight men now own the same amount of wealth as the poorest half of the world.
- Over the next 20 years, 500 people will hand over $2.1 trillion to their heirs a sum larger than the GDP of India, a country of 1.3 billion people

Book - Bourgeois Equality

G11 - Week 18 - Day 1

In-class work

1. The Short-run Phillips Curve
2. The Long-run Phillips Curve
3. Discuss Nobel Laureate visit

Ongoing Country Information

1. Figure out unemployment rates
2. Labor participation rates
3. Causes of the above?
4. What are the inflation rates?

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Currently Reading

Blog - Deficits always matter, by Scott Sumner

and

Book - Bourgeois Equality

G11 - Week 17 - Day 3

In-class work

1. The Short-run Phillips Curve
2. The Long-run Phillips Curve
3. Discuss Nobel Laureate visit

Ongoing Country Information

1. Figure out unemployment rates
2. Labor participation rates
3. Causes of the above?
4. What are the inflation rates?

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Currently Reading

Blog - Deficits always matter, by Scott Sumner

and

Book - Bourgeois Equality

G11 - Week 17 - Day 2

In-class work

1. Deflation: Causes, consequences and solutions - part 1 of 2
2. Deflation: Causes, consequences and solutions - part 2 of 2
1. Exercise 1 (p. 302)
2. HL Only Exercises 2-4 (p. 306-7)
3. Exercises 5-9 (p. 317)
3. The Short-run Phillips Curve
4. The Long-run Phillips Curve

Ongoing Country Information

1. Figure out unemployment rates
2. Labor participation rates
3. Causes of the above?
4. What are the inflation rates?

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Currently Reading

Blog - Deficits always matter, by Scott Sumner

and

Book - Bourgeois Equality

G11 - Week 17 - Day 1

In-class work

1. The Consequences of and Solutions to Unemployment - part 3 of 3
1. Exercises 7-9 (p. 297)
2. Inflation: Causes, Consequences and Solutions - part 1 of 2
3. Inflation: Causes, Consequences and Solutions - part 2 of 2
4. Deflation: Causes, consequences and solutions - part 1 of 2
5. Deflation: Causes, consequences and solutions - part 2 of 2
1. Exercise 1 (p. 302)
2. HL Only Exercises 2-4 (p. 306-7)
3. Exercises 5-9 (p. 317)
6. The Short-run Phillips Curve
7. The Long-run Phillips Curve

Ongoing Country Information

1. Figure out unemployment rates
2. Labor participation rates
3. Causes of the above?

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From the blogosphere

1. Spending on consumption vs. spending on investment, by Scott Sumner

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Currently Reading

Debt: The First 5,000 Years

and

Bourgeois Equality

Money, Inflation, and Models - NYTimes.com

Increasing the monetary base during demand-deficient recessions doesn't necessarily lead to inflation. The last eight years in the US seem to have proven this. Japan from the nineties on and the Great Recession were also examples.

Money, Inflation, and Models - NYTimes.com

Consider the relationship between the monetary base — bank reserves plus currency in circulation — and the price level. Normal equilibrium macro models say that there should be a proportional relationship — increase the monetary base by 400 percent, and the price level should also rise by 400 percent. And the historical record seems to confirm this idea. Back in 2008-2009 a lot of people were passing around charts like this one, which shows annual rates of money base growth and consumer prices over the period from 1980-2007: 

Credit 

It seemed totally obvious to many people that with the Fed adding to the monetary base at breakneck speed, high inflation just had to be around the corner. That’s what history told us, right? 

Except that those who knew their Hicks declared that this time was different, that in a liquidity trap the rise in the monetary base wouldn’t be inflationary at all (and that the relevant history was from Japan since the 1990s and from the 1930s, which seemed to confirm this claim). And so it proved, as shown by the red marker down at the bottom.