PA 974, Section 001: Monetary and Financial Policy in the Wake of the Financial Crisis
This site provides resources for students in PA 974
at the University of Wisconsin,
Madison for Fall 2012 Semester
Source: Adrian and Ashcroft, "Shadow Banking: A Review of the Literature," FRB NY Staff Reports No. 580 (Oct. 2012).
Important Dates |
Downloadable Course Materials and Information Sources |
Robert M. LaFollette School of Public Affairs |
LECTURE: STERLING 1313, Thursdays 10:55 AM - 12:50 PM
Professor Menzie Chinn
Office Hours: T 2:30-3:30, R 3-4.
Office: 7418 Social Sciences Bldg.
Phone: (608) 262-7397
mchinn at lafollette.wisc.edu
PA974 Syllabus in PDF file.
This course will cover the basics of monetary policy, finance and financial regulation in the context of the post-Financial Crisis economic environment.
Specific topics including how the money supply is controlled, the role of the banking system, and the implications for analyzing macroeconomic fluctuations. The course will also address the basics of asset pricing. A portion of the course will address the analysis and implications of financial regulation. Some discussion of how monetary policy and financial regulation is conducted in emerging market and developing economies will be included.
Prerequisites: PubAffr 854, Econ 302, or equivalent.
- Paper due: Sunday, December 16.
Downloadable Course Materials
- Notes on ISLM
- Notes on Portflio Crowding Out
- Notes on Aggregate Demand - Aggregate Supply
- Notes on the Expectations Hypothesis of the Term Structure, the Liquidity Premium and Economic Activity
- Notes on Stock Prices, "News" and the Efficient Markets Hypothesis
- Notes on Bank Balance Sheets
- Glenn D. Rudebusch, "The Fed's Monetary Policy Response to the Current Crisis," FRBSF Economic Letters 2009-17; May 22, 2009
- Notes on Money Supply Process
- James Hamilton, “Concerns about the Fed's New Balance Sheet, in The Road Ahead for the Fed,” edited by John D. Ciorciari and John B. Taylor, Stanford: Hoover Institution Press, 2009.
- Ben Bernanke, Alan Blinder, “Credit, Money and Aggregate Demand,”American Economic Review 78(2) (May, 1988), pp. 435-439.
- Notes on CC-LM
- FA (Bernanke, Gertler and Gilchrist, "The Financial Accelerator and the Flight to Quality," The Review of Economics and Statistics 78(1). (Feb., 1996): 1-15.
- CJS (J.D. Coval, J. Jurek, E. Stafford, "The Economics of Structured Finance," Journal of Economic Perspectives 23(1) (Winter 2009).)
- DFP (Mathias Dewatripont, Xavier Freixas, and Richard Portes, editors, Macroeconomic Stability and Financial Regulation: Key Issues for the G20 (CEPR, 2 March 2009), pp. 91- .)
- Hilsenrath, "How Bernanke Pulled the Fed His Way," WSJ, 28 Sep 2012 [link] [pdf].
Additional Optional Readings
- Viral Acharya, Thomas Cooley, Matthew Richardson and Ingo Walter, "Dodd-Frank: One Year On..." Dodd-Frank One Year On (CEPR/Vox, 2011).
- Gorton, "The Panic of 2007," paper presented at Kansas City Fed Jackson Hole conference (August 2008).
- Richard G. Anderson, Charles S. Gascon, and Yang Liu, "Doubling Your Monetary Base and Surviving: Some International Experience," Federal Reserve Bank of St. Louis Review, November/December 2010, 92(6), pp. 481-505.
- Moody's Analytics, "Basel III New Capital and Liquidity Standards - FAQs" (1/19/2012).
- Joe Nocera, "Risk Management," NYT January 2, 2009.
- Aswath Damodaran (NYU) notes on VaR
- Kevin Kliesen, et al., "Disentangling Diverse Measures: A Survey of Financial Stress Indexes" Federal Reserve Bank of St. Louis Review (Sept/Oct 2012). [pdf]
- Lawrence Summers, "Does the Stock Market Rationally Reflect Fundamental Values?" Journal of Finance 41(3) (July 1986). [pdf]
- Robert Schiller, "Do Stock Prices too Much to Be Justified by Subsequent Dividends," AER 71(3) (June 1981). [pdf]
- Matthieu Bussière and Annukka Ristiniemi, "Credit Ratings and Debt Crises," Bank of France Working Papers No. 396 (September 2012). [pdf]
- Menzie Chinn and Kavan Kucko, "The Predictive Power of the Yield Curve across Countries and Time," NBER Working Paper No. 16398 (Sept. 2010). [pdf].
- Menzie Chinn and John Kitchen, "Financing U.S. Debt: Is There Enough Money in the World – and At What Cost?" International Finance (2012). [pdf].
- Gary Gorton, "The Panic of 2007," paper presented at 2008 Jackson Hole conference [link]
- "Credit default swaps: Heading towards a more stable system," Deutsche Bank (Dec 2009). [link]
- IMF, "Will It Hurt? Macroeconomic Effects of Fiscal Consolidation," Chapter 4 in World Economic Outlook (October 2010).
- A. Alesina, "Fiscal Adjustments: Lessons from Recent History," paper presented at ECOFIN meeting (April 15, 2010).
- Interactive Yield Curve
- NBER, Business Cycle Dating Committee, National Bureau of Economic Research (Sep. 20, 2010).
- Financial Crisis Inquiry Commission A bipartisan commission.
- Russell and Carter, "How the Giants of Finance Shrank, Then Grew, Under the Financial Crisis," NYT, 13 Sep 2009.
- Menzie Chinn and Jeffry Frieden, "Reflections on the Causes and Consequences of the Debt Crisis of 2008," La Follette Policy Report 19(1) (Fall 2009): 1-5. [pdf].
- P. Cohen, Ivory Tower Unswayed by Crashing Economy, NYT (5 March 09).
- P. Swagel, 2009, "The Financial Crisis: An Inside View," paper presented at the Brookings Panel on Economic Activity, March 2009
- Brunnermeier, et al., "The Fundamental Principles of Financial Regulation," Geneva Reports on the World Economy No 11.
Tracking the Crisis and Recession
Economics and Economic Policy Links
U.S. Government Agencies
Current and Historical Data
- Note: IMF, International Financial Statistics, and World Bank, World Development Indicators, available from DISC.
- St. Louis Fed economic database Thousands
of time series on economic activity, in an easily downloadable form.
- YCharts Thousands of macro and equity market data series.
- md4stata ("Macroeconomic Data for Stata")
- Economic Indicators Many Department of Commerce economic series, all in one place.
- White House Economic Briefing Room Contains
current economic data.
- Economic Indicators Publication of CEA and Congressional Joint Economic Committee contains
recent economic data.
- Bureau of Economic Analysis, Dept. of Commerce Data on GDP and components (the national income and product accounts) as well as other macroeconomic data.
- Bureau of the Census, Dept. of Commerce Data on the characteristics
of the US population as well as of US firms.
- Bureau of Labor Statistics, Dept. of Labor Data on
wages, prices, productivity, and employment and unemployment rates.
- Energy Information Agency, Dept. of Energy Data on
on energy (electricity, gas, petroleum) production, consumption and prices.
- Statistical Abstract of the US
A compilation of statistics about the US, from government and nongovernment sources.
- Bank for International
settlements Effective Exchange Rate Indices.
- Economic Report of the President, various years. The back portion of
this annual publication contains about 70 tables of government economic data.
- NBER Data Specialized economic databases created by
economists associated with the National Bureau of Economic Research.
- NBER listing of economic releases Compendium of links to economic releases, and archived releases.
- Pacific Exchange Rate Service.
- Federal Reserve Board data Monetary, financial and output data
collected by the Nation's central bank.
- Penn World Tables Annual GDP and other data for over a hundred countries, expressed
in dollars, after adjusting for differing price levels.
PA 974-001 Monetary and Financial Policy in the Wake of the Financial Crisis / UW Madison / firstname.lastname@example.org / 12 December 2012