Study Guide

Study Guide can be found here.

update: study guide updated on Sunday March 7 at 11:45 am. It now reflects all of the material we covered.

State of Macroeconomics

For a brief history of Macroeconomics, read Mankiw:

• "The Macroeconomist as a Scientist and Engineer"

For criticism of the `DSGE' model see Willem Buiter:

• "The unfortunate uselessness of most `state of the art' academic monetary economics"
  

Crisis Slides

Slides on The Crisis

Frontline: Inside the Meltdown

http://www.pbs.org/wgbh/pages/frontline/meltdown/

Bank Runs

Model of Bank Runs, current as of feb 15 1pm.

Brunnermeier

Fed Open Market Operations Annual Reports

Gorton and Bank Runs

Gorton and Haircuts

OTC and Repo Market

For Monday, in addition to the previous material on credit default swaps, also watch the following Marketplace Whiteboards:

• "Over-the-counter, over the top"
• "The 'repo' market"

We will also be covering the tools of Monetary Policy before the crisis hit, so please look over the chapter on banking and Monetary Policy from your intermediate macro textbook (if you still have one). I will also be posting some material about Monetary Policy.

Strategic Default

Here are the links for the two stories on strategic default:

• Planet Money: "To Stay or Walk Away"
• Marketplace: "Strategically defaulting on a home loan"

Remember to watch the Marketplace Whiteboards segments for tomorrow where we will be covering securitization.