October 09, 2002
Economics 236: Advanced Macroeconomics: Preliminary Sketch of a Reading List

Economics 236: Advanced Macroeconomics: Preliminary Sketch of a Reading List

Tools: Books You Must Have on Your Bookshelf:

  • Lars Ljungqvist and Thomas J. Sargent (2001), Recursive Macroeconomic Theory (Cambridge: MIT Press: 0262194511).
  • David Romer (2000), Advanced Macroeconomics (New York: McGraw-Hill: 0072318554).
  • Avinash Dixit (1991), Optimization in Economic Theory (Oxford: Oxford University Press: 0198772106).
  • Maurice Obstfeld and Kenneth Rogoff (1996), Foundations of International Macroeconomics (Cambridge: MIT Press: 0262150476).
  • Olivier Blanchard (), Macroeconomics ().

The Past:

  • John Maynard Keynes (1934), Essays in Persuasion (New York: W.W. Norton: 0393001903).
  • John Maynard Keynes (1924), Tract on Monetary Reform (New York: Prometheus Books: 1573927937).
  • [what do we know that Fisher and Wicksell did not?

The Present: Central Banking:

  • Alan Blinder (1999), Central Banking in Theory and Practice (Cambridge: MIT Press: 0262522608).
  • [inflation targeting]

The Present: Bubbles:

  • Andrei Shleifer (2000), Inefficient Markets (Oxford: Oxford University Press: 0198292279).
  • [Something more on how bubbles develop]
  • [monetary policy and bubbles]

The Present: Financial Crises:

  • Morris Goldstein (1998), The Asian Financial Crisis (Washington: Institute for International Economics: 088132261X).
  • Michael Mussa (2002), Argentina and the Fund: From Triumph to Tragedy (Washington: Institute for International Economics: 088132339X).
  • Paul Krugman (1999), "Analytical Afterthoughts on the Asian Crisis."
  • Paul Krugman (1999), "Balance Sheets, the Transfer Problem, and Financial Crisis."
  • Philippe Aghion, Pierre Bacchetta, and Abhijit Banerjee (1999), "A Simple Model of Monetary Policy and Currency Crises."

The Present: High Unemployment:

  • Olivier Blanchard (2002), The Economics of Unemployment: Shocks, Institutions, and Interactions (Cambridge: MIT Press).
    • <http://econ-www.mit.edu/faculty/blanchar/files/files/out0f.pdf>
    • <http://econ-www.mit.edu/faculty/blanchar/files/files/out1f.pdf>
    • <http://econ-www.mit.edu/faculty/blanchar/files/files/out2f.pdf>
    • <http://econ-www.mit.edu/faculty/blanchar/files/files/out3f.pdf>
    • <http://econ-www.mit.edu/faculty/blanchar/files/files/harry.pdf>

The Present: Liquidity Traps:

Previous Course Syllabus: Econ 202b

http://elsa.berkeley.edu/~chad/econ202b2001.html

Chad Jones did about 4 lectures on DSGE models, including: (i) a one-lecture intro to dynamic programming, (ii) basic DSGE model a la Romer Chapter 4, (iii) simple matching to the data as in Hansen and Wright (1992)...

Posted by DeLong at October 09, 2002 12:54 PM | Trackback
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Thank you Brad. Very useful list of resources.

Posted by: Ian Welsh on October 10, 2002 07:58 AM

It's a rare instance of present (and future) oriented graduate class. My bet is that it's going to spur interesting paper ideas.

Posted by: Jean-Philippe Stijns on October 10, 2002 12:13 PM

"Advanced Macro" is nearly an oxymoron. I think that the macro taught to freshmen is closer to reality than the macro taught in upper-level grad school courses.

Your main textbooks tend to come from the view that truth is a pot of gold that lies at the end of some exquisitely mathematic rainbow, a view that has wasted the time of countless talented economists.

You way over-estimate Blanchard's contributions.

Another way to structure an advanced macro course would be to focus on Japan's Lost Decade. My guess is that students should be made to delve into Japan's culture, history, and institutions and try to put together a complete macro story that incorporates those factors.

My $.02

Posted by: Arnold Kling on October 11, 2002 09:09 AM

Japan's last 130 odd years is a fascinating story and one that still isn't understood. And understanding it is very important.

Posted by: Ian Welsh on October 12, 2002 06:04 PM

I am not any way involved in this course, however
I do appreciate the reading list as I am as a private student very interested in eco-politics.
I greatly believe it is up to libertarians at large to stand up and be counted. Before you can effectfully do so all must self-educate themselves so as to not make the mistakes of the past reoccur. Th ecountry and world is currently controlled by those only looking out for thier best interests as bush so eloquently proves with his resurgence of Regan-nomics and FDR new deal rip-offs.Pay attention yea of intelligence out there we are in trying times once again and the public as a whole is overwhelming ignorant of the facts and politicians private/economic agendas.

Posted by: mark cooper on December 19, 2002 10:05 AM

I am not any way involved in this course, however
I do appreciate the reading list as I am as a private student very interested in eco-politics.
I greatly believe it is up to libertarians at large to stand up and be counted. Before you can effectfully do so all must self-educate themselves so as to not make the mistakes of the past reoccur. Th ecountry and world is currently controlled by those only looking out for thier best interests as bush so eloquently proves with his resurgence of Regan-nomics and FDR new deal rip-offs.Pay attention yea of intelligence out there we are in trying times once again and the public as a whole is overwhelming ignorant of the facts and politicians private/economic agendas.

Posted by: mark cooper on December 19, 2002 10:06 AM
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