🔖 Reading List

Topics and Readings

📕: Required Readings

Week 6: Labour Market and Unemployment

  • 📕 Advanced Macroeconomics Chapter 11 - David Romer (Romer 2018 )
  • The Economist (2023), To understand America’s job market, look beyond unemployed workers (Economist 2023b )
  • 📕 Equilibrium Unemployment Theory - Pissarides (Pissarides 2000 )
  • The Fair Wage-Effort Hypothesis and Unemployment - Akerlof and Yellen (Akerlof and Yellen 1990 )
  • Equilibrium Unemployment as a Worker Discipline Device - Shapiro and Stiglitz (Shapiro and Stiglitz 1984 )
  • 📕 Indivisible Labor and the Business Cycle - Hansen (Hansen 1985 )
  • 📕 Moving Back Home: Insurance against Labor Market Risk - Kaplan (Kaplan 2012 )

Week 7: Financial Frictions and Financial Crises

  • 📕 Advanced Macroeconomics Chapter 10 - David Romer (Romer 2018 )
  • Government policy, credit markets and economic activity - Christiano and Ikeda (Christiano and Ikeda 2011 )
  • Why America’s banks need more capital - The Economist (Economist 2023c )
  • 📕 Financial Intermediation and Credit Policy in Business Cycle Analysis - Gertler and Kiyotaki (M. Gertler and Kiyotaki 2010 )
  • 📕 A Model of Unconventional Monetary Policy - Gertler and Karadi (Mark Gertler and Karadi 2011 )
  • 📕 The Financial Accelerator in a Quantitative Business Cycle Framework - Bernanke (Bernanke 1999 )
  • 📕 Four ways to fix the bank problem - Wolf (Wolf 2023 )
  • 📕 The Diamond-Dybvig Model of Bank Runs - Diamond and Dybvig (Diamond and Dybvig 1983 )
  • Banks and Liquidity Creation: A Simple Exposition of the Diamond-Dybvig Model - Diamond (Diamond 2007 )
  • 📕 Collective Moral Hazard, Maturity Mismatch, and Systemic Bailouts - Farhi and Tirole (Farhi and Tirole 2012 )
  • 📕 Deposit Insurance and Bank Regulation: A Partial-Equilibrium Exposition - Kareken and Wallace (Kareken and Wallace 1978 )

Week 8: Budget Deficits and Sovereign Debt Crises

References

Akerlof, George A, and Janet L Yellen. 1990. “The Fair Wage-Effort Hypothesis and Unemployment.” The Quarterly Journal of Economics 105 (2): 255–83.
Alesina, Alberto, and Allan Drazen. 1991. “Why Are Stabilizations Delayed?” The American Economic Review, 1170–88.
Auerbach, Alan J., and William G. Gale. 2023. “The Federal Budget Outlook.” Brookings Papers on Economic Activity. https://www.brookings.edu/wp-content/uploads/2023/04/Auerbach-Gale-2023_4.28.23-REVISED.pdf.
Barro, Robert J. 1979. “On the Determination of the Public Debt.” Journal of Political Economy 87 (5, Part 1): 940–71.
Bernanke, B. 1999. “The Financial Accelerator in a Quantitative Business Cycle Framework.” Handbook of Macroeconomics/Elsevier.
Christiano, Lawrence, and Daisuke Ikeda. 2011. “Government Policy, Credit Markets and Economic Activity.” National Bureau of Economic Research.
Cole, Harold L, and Timothy J Kehoe. 2000. “Self-Fulfilling Debt Crises.” The Review of Economic Studies 67 (1): 91–116.
Diamond, Douglas W. 2007. “Banks and Liquidity Creation: A Simple Exposition of the Diamond-Dybvig Model.” FRB Richmond Economic Quarterly 93 (2): 189–200.
Diamond, Douglas W, and Philip H Dybvig. 1983. “Bank Runs, Deposit Insurance, and Liquidity.” Journal of Political Economy 91 (3): 401–19.
Economist, The. 2023a. “America Faces a Debt Nightmare.” https://www.economist.com/finance-and-economics/2023/03/24/why-americas-banks-need-more-capital.
———. 2023b. “To Understand America’s Job Market, Look Beyond Unemployed Workers.” https://www.economist.com/business/2023/03/24/to-understand-americas-job-market-look-beyond-unemployed-workers.
———. 2023c. “Why America’s Banks Need More Capital.” https://www.economist.com/finance-and-economics/2023/03/24/why-americas-banks-need-more-capital.
Farhi, Emmanuel, and Jean Tirole. 2012. “Collective Moral Hazard, Maturity Mismatch, and Systemic Bailouts.” American Economic Review 102 (1): 60–93.
Gertler, Mark, and Peter Karadi. 2011. “A Model of Unconventional Monetary Policy.” Journal of Monetary Economics 58 (1): 17–34.
Gertler, M, and N Kiyotaki. 2010. “Financial Intermediation and Credit Policy in Business Cycle Analysis.” Handbook of Monetary Economics/Elsevier.
Hansen, Gary D. 1985. “Indivisible Labor and the Business Cycle.” Journal of Monetary Economics 16 (3): 309–27.
Hsieh, Chang-Tai. 2000. “Bargaining over Reform.” European Economic Review 44 (9): 1659–76.
Kaplan, Greg. 2012. “Moving Back Home: Insurance Against Labor Market Risk.” Journal of Political Economy 120 (3): 446–512.
Kareken, John H, and Neil Wallace. 1978. “Deposit Insurance and Bank Regulation: A Partial-Equilibrium Exposition.” Journal of Business, 413–38.
Pissarides, Christopher A. 2000. Equilibrium Unemployment Theory. MIT press.
QuantEcon. 2024. “Tax Smoothing.” https://python-advanced.quantecon.org/tax_smoothing_1.html.
Romer, David. 2018. “Advanced Macroeconomics.”
Shapiro, Carl, and Joseph E Stiglitz. 1984. “Equilibrium Unemployment as a Worker Discipline Device.” The American Economic Review 74 (3): 433–44.
Tabellini, Guido, and Alberto Alesina. 1990. “Voting on the Budget Deficit.” The American Economic Review, 37–49.
Wolf, Martin. 2023. “Four Ways to Fix the Bank Problem.” Financial Times. https://www.ft.com/content/70ce4b8a-1310-4e3c-a891-3c34cd313841.