Macroeconomics

  1. Macroeconomic Policy Debates
    1. Debates over Stabilization Policy
      1. Should Policymakers Try to Stabilize the Economy?
        1. Arguments For Active Policy
          1. Market Failures
            1. Sticky Prices and Wages
              1. Unemployment Costs
                1. Coordination Problems
                2. Arguments Against Active Policy
                  1. Long and Variable Lags
                    1. Political Constraints
                      1. Crowding Out Effects
                        1. Rational Expectations
                          1. Policy Mistakes
                          2. Empirical Evidence
                          3. Should Monetary Policy Be Made by Rule or Discretion?
                            1. Rules-Based Policy
                              1. Monetary Rules
                                1. Taylor Rule
                                  1. Inflation Targeting
                                    1. Advantages of Rules
                                    2. Discretionary Policy
                                      1. Flexibility
                                        1. State-Contingent Policy
                                          1. Advantages of Discretion
                                          2. Time Inconsistency Problem
                                            1. Dynamic Inconsistency
                                              1. Credibility Issues
                                                1. Solutions to Time Inconsistency
                                              2. Should the Central Bank Aim for Zero Inflation?
                                                1. Benefits of Low Inflation
                                                  1. Price Stability
                                                    1. Reduced Uncertainty
                                                      1. Efficient Resource Allocation
                                                      2. Costs of Zero Inflation
                                                        1. Deflation Risk
                                                          1. Zero Lower Bound
                                                            1. Measurement Bias
                                                            2. Optimal Inflation Rate
                                                              1. Theoretical Considerations
                                                                1. Empirical Evidence
                                                                  1. Central Bank Targets
                                                              2. Government Debt and Budget Deficits
                                                                1. The Size of Government Debt
                                                                  1. Debt Levels
                                                                    1. Debt-to-GDP Ratio
                                                                      1. International Comparisons
                                                                      2. Problems in Measurement
                                                                        1. Gross vs Net Debt
                                                                          1. Off-Budget Liabilities
                                                                            1. Social Security
                                                                              1. Medicare
                                                                                1. Pension Obligations
                                                                                2. Inflation and Real Debt
                                                                                  1. Present Value Calculations
                                                                                  2. The Government Budget Constraint
                                                                                    1. Intertemporal Budget Constraint
                                                                                      1. Debt Dynamics
                                                                                        1. Sustainability Conditions
                                                                                        2. Traditional View of Government Debt
                                                                                          1. Crowding Out
                                                                                            1. Interest Rate Effects
                                                                                              1. Investment Displacement
                                                                                              2. Burden on Future Generations
                                                                                                1. Intergenerational Transfers
                                                                                                  1. Tax Burden
                                                                                                2. Ricardian Equivalence
                                                                                                  1. Theory and Assumptions
                                                                                                    1. Forward-Looking Consumers
                                                                                                      1. Perfect Capital Markets
                                                                                                        1. Infinite Horizons
                                                                                                        2. Policy Implications
                                                                                                          1. Empirical Evidence
                                                                                                            1. Supporting Evidence
                                                                                                              1. Contradicting Evidence
                                                                                                            2. Other Perspectives on Government Debt
                                                                                                              1. Fiscal Sustainability
                                                                                                                1. Debt Limits
                                                                                                                  1. Fiscal Rules
                                                                                                                  2. Intergenerational Equity
                                                                                                                    1. Generational Accounting
                                                                                                                      1. Fairness Considerations
                                                                                                                      2. Debt and Growth
                                                                                                                        1. Threshold Effects
                                                                                                                          1. Reinhart-Rogoff Debate
                                                                                                                      3. Financial Crises
                                                                                                                        1. Types of Financial Crises
                                                                                                                          1. Banking Crises
                                                                                                                            1. Currency Crises
                                                                                                                              1. Debt Crises
                                                                                                                                1. Twin Crises
                                                                                                                                  1. Systemic Crises
                                                                                                                                  2. Anatomy of a Crisis
                                                                                                                                    1. Pre-Crisis Conditions
                                                                                                                                      1. Asset Bubbles
                                                                                                                                        1. Excessive Leverage
                                                                                                                                          1. Risk-Taking
                                                                                                                                          2. Crisis Triggers
                                                                                                                                            1. Confidence Loss
                                                                                                                                              1. Bank Runs
                                                                                                                                                1. Market Panic
                                                                                                                                                2. Crisis Propagation
                                                                                                                                                  1. Contagion Effects
                                                                                                                                                    1. Credit Crunches
                                                                                                                                                      1. Fire Sales
                                                                                                                                                    2. Early Warning Indicators
                                                                                                                                                      1. Macroeconomic Indicators
                                                                                                                                                        1. Financial Indicators
                                                                                                                                                          1. Institutional Indicators
                                                                                                                                                          2. Policy Responses to Crises
                                                                                                                                                            1. Immediate Response
                                                                                                                                                              1. Liquidity Provision
                                                                                                                                                                1. Deposit Insurance
                                                                                                                                                                  1. Bank Recapitalization
                                                                                                                                                                  2. Monetary Policy Tools
                                                                                                                                                                    1. Interest Rate Cuts
                                                                                                                                                                      1. Quantitative Easing
                                                                                                                                                                        1. Credit Easing
                                                                                                                                                                        2. Fiscal Policy Tools
                                                                                                                                                                          1. Stimulus Packages
                                                                                                                                                                            1. Bank Bailouts
                                                                                                                                                                              1. Automatic Stabilizers
                                                                                                                                                                              2. Financial Regulation and Reform
                                                                                                                                                                                1. Basel Accords
                                                                                                                                                                                  1. Systemic Risk Regulation
                                                                                                                                                                                    1. Too-Big-to-Fail Problem
                                                                                                                                                                                  2. Crisis Prevention
                                                                                                                                                                                    1. Macroprudential Policy
                                                                                                                                                                                      1. Financial Supervision
                                                                                                                                                                                        1. International Coordination
                                                                                                                                                                                        2. Lessons from Major Crises
                                                                                                                                                                                          1. Great Depression
                                                                                                                                                                                            1. Asian Financial Crisis
                                                                                                                                                                                              1. Global Financial Crisis
                                                                                                                                                                                                1. European Debt Crisis

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                                                                                                                                                                                            8. Open-Economy Macroeconomics

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                                                                                                                                                                                            1. Introduction to Macroeconomics