101Lecture4F'07post

101Lecture4F'07post - Professor Bogan ECO 101 Lecture 4...

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Professor Bogan ECO 101 Lecture 4 ECONOMIC GROWTH PROCEDURAL ITEMS: Article in packet on rational expectations is difficult, stochastic means probabilistic, FOMC is Federal Open Market Committee which sets monetary policy. It meets about every six weeks and in its most recent meeting in September voted to decrease the Fed Funds target rate to 4.75% (More on the Fed Funds Rate later in the course)
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2 The Economist Sept 22, 2007 Under "leaders" The World Economy: Will the credit crisis trigger a downturn? (print edition p15) Under "Briefing" The Global Economy: Turning Point? (p. 35 in print edition) Under "Europe" France's economic reforms: A rupture with the past? (p:63 in print edition) Under "Finance and Economics" The Federal Reserve: Bernanke's bounty (p. 89 in print edition) QuickTime ð and a TIFF (Uncompressed) decompres are needed to see this picture.
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3 Mid-20th Century Schools of Thought KEYNESIAN 1930’s: John Maynard Keynes Response to Great Depression Government stabilization policy AUSTRIAN MONETARIST RADICAL 1960’s Union of Radical Political Economists. Leader is Samuel Bowles. Never reached mainstream. 1930’s: Frederick Hayek 1960’s: Milton Friedman Believe money supply affects aggregate demand, rather than countercyclical fiscal policies
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4 Late 20th-Century Schools of Thought NEW CLASSICAL SUPPLY SIDE 1970’s: Art Laffer — Reaganomics, Steve Forbes. Promote growth through tax cuts to increase savings, investment, and work effort NEW KEYNESIAN 1970’s: Lucas and Barro Importance of rational expectations in behavior QuickTime 9 an TIFF (Uncompressed are needed to see th Robert Lucas 1980’s reaction to rational expectations Charles Schultze, Alan Blinder, Pro-stabilization policy, activist government QuickTime TIFF (Uncompr are needed to
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5 Economic Schools of Thought THE LEFT THE RIGHT early late SOCIALISM RADICAL KEYNESIAN CLASSICAL AUSTRIAN MONETARIST NEW CLASSICAL SUPPLY SIDE NEW KEYNESIAN
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This note was uploaded on 04/08/2008 for the course ECO 101 taught by Professor Elizabethc.bogan during the Fall '08 term at Princeton.

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101Lecture4F'07post - Professor Bogan ECO 101 Lecture 4...

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