Economics 311: IS-LM
Read:
Paul Krugman on why IS-LM is the way to think about these issues (New York Times, October 9th, 2011)
How is Investment Demand doing?
What is the interest rate? Well...that depends....
Yield Curves: Usually long term interest rates are higher than short term interest rates, but sometimes the relationship is reversed, and when it is...that's a warning sign of recession! (Here is another cool animation)
For Interest:
For interest:
J. R. Hicks, "Mr. Keynes and the 'Classics': A suggested interpretation", Econometrica, April, 1937
Letter of advice from Keynes to President Franklin Roosevelt, February 1, 1938, and a reply. Here it is in text form.
Time Magazine rated Keynes one of the Top 100 Thinkers of the Twentieth Century, but then they've been fans since 1923.
The General Theory of Employment, Interest and Money (1936) PDF, PDF w/o footnotes, Text
Sir John Hicks, "Mr. Keynes and the Classics" (1937) Econometrica
Milton Friedman wasn't much of a fan of Keynes.
The Great Depression
Cool, short montage about the Great Depression (from HBO's Carnivale). It really captures how severely and universally things were going to hell
Like Obama, Franklin Roosevelt's predecessor left him a big mess
Hoover was a very smart engineer and businessman, who didn't have good economists.
It got really scary in 1932 when veterans from World War I marched on DC to demand the bonus they'd been promised. More on the Bonus Army
General MacArthur (and Eisenhower) turned the troops loose on them and their squatter huts, and the film of it played in newsreels all across America.
At the same time, the environment was turning much of the midwest into the surface of the moon
The Dust Bowl...we could see that we weren't taking very good care of the environment...but how bad could things really get? Oh....
FDR got elected, and gave his inaugural address on March 4, 1933
"So first of all let me assert my firm belief that the only thing we have to fear. . .is fear itself. . . nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance."
Diary entries from the Great Depression (Washington Post, Nov. 1, 2009)
For amusement
"Fear the Boom and Bust" - Keynes vs Hayek Rap Anthem (Not as bad as you might think.)
Cliff-Notes for the economics behind this.
Keynes versus Hayek, Round 2.0! (Yet more econ rapping.)
Keynes cartoon
Keynes was an incredible quote machine!
Keynes's sex diaries. Eeewwwweee. Who does that? Keep a diary?