For the following questions, select the BEST answer from the choices provided. Indicate your answers
on a General Purpose Answer Sheet using a #2 pencil. You may write on this exam, but only your
bubble sheet answers will be g
11/21. The Government Role in Income
Today: Eect of Government Spending on Income Equality
Tuesday 11/26: Eect of taxing on income equality
Thursday 11/28: no class, Thanksgiving
Tuesday 11/26: TBA, nal income inequa
11/19. Trends in Income Inequality: Market
Then and Now: Radical Changes in American Society
Then In the early 1950s The New York Yankees signed Mickie Mantle, the
most famous athlete of the era, to a new contract for $100,00 per year.
11/14. Introduction to Income Inequality
Outline of lectures:
(a) Why study inequality?
(b) How can we examine it?
(c) What are the trends?
A focus to explanation: inequality = market forces + government
2. Market explanations o
9/26. Government Policy in a Rational
Digression: Is Economic behavior really rational?
Everything in rational expectations depends crucially on the assumption of
rationality. If behavior isnt rational, then nothing follows.
11/26 The Government Role: Taxing
Federal Income Tax
Because we live in an exceptionally complicated economic structure, it is
impossible to have a simple tax system that is also fair. That is a simple
The complication has nothing to do with rates
8/22 The 2008 Financial Panic
You must have been about 15 years old at the time, on average. My
guess is that you were aware of the nancial panic to some degree, but
probably did not know how serious it was.
I was teaching this very same co
9/24. Rational Expectations I: Financial
The wisdom of Warren Buett on nancial crises:
Its very hard to write regulations that will keep people from acting foolishly, particularly when acting foolishly has proven very
protable over the preceding f
9/19 Fiscal, Monetary, Neither?
Review: 3 actions
1. Open market for direct impact on M, indirect on rates
2. Reserve Requirements: indirect on both
3. Discount rate: direct on R, indirect on M
But note that none works directly on both.
9/12. Fiscal Policy and Investment:
Stimulating the Supply Side
A Note on Perspective
In previous semesters I have assigned Krugmans Peddling Prosperity, which
dismisses supply-side economics as bogus, a group of charlatans who are not
9/17. Monetary Policy I
National Banks for Monetary Control
Fiscal vs. Monetary
Fiscal policy, what we have focused on so far, is using government spending
and taxing as an instrument to regulate the private economy.
Monetary policy, a completely di
9/10. Unemployment, Ination, and Party
Review: Phillips Curve
Q. Phillips curve tells us what the possible choices are. How then do we
The Phillips Curve: Economic Policy Tradeoffs
The Frontier of Government Policy Choi
9/5. John Maynard Keynes and the General
If the U.S. Government in the midst of the great depression had turned to
economic theory for help, it would have learned from Adam Smith:
1. stay out of the private economy; it was regulated
9/3 Economic Theory Before Keynes
This is an economic history of the world which relies heavily on anthropology.
For appropriate modesty it is worth pointing out that I am neither economist,
nor historian, nor anthropologist.
An Amateur Economic History
8/27 Part II. The Financial Panic of 2008:
What Happened and Why?
After the Housing Bubble, Before the Panic
Executive Bonuses and Corporate Risk Taking
The idea of executive performance bonuses caught on like wildre in
the nancial community.
First Meeting (POLI 401: Political Economy)
HAM 452: T-TH 2:00-3:15
All course materials for this course will be on sakai. That includes a syllabus,
which I will not hand out. Im going to talk about the avor of the course
to come and then Thursday Ill do