The Global Economy (MBA)
Spring 2014
Important dates
Events - Global Economy Forum, Jan 31
Exams (Section 30, M 6-9) - Midterm, Mar 31 Final, May 12
(Section 31, W 6-9) - Midterm, Mar 26 Final, May 7
Problem Sets (Section 30) - Feb 24 Mar 3 Mar 24 Apr 21 May 5
(Section 31) - Feb 19 Feb 26 Mar 12 Apr 16 Apr 30
======================================================
Outline
======================================================
Session 0 (Optional) January 31
Global Economy Forum.
"Prospects and Challenges for the U.S. and International Economies"
(Former U.S. Treasury Secretaries Robert Rubin and Lawrence Summers)
--------------------------------------------------------------------------
Session 1 Section 30: Feb 10 Section 31: Feb 12
Introduction and overview. Measurement.
Read before class: Math Review (Ch. 1) | Macroeconomic Data (Ch. 2) | Syllabus (PDF)
Learn to use FRED (Federal Reserve Economic Database): NYU Stern YouTube Tutorials and Other FRED Tutorials
Something extra: NYU Stern Economics blog
Problem set guidelines: DOC Slides: PPT In-class GDP example: PDF | Solutions
Global Economy Coursebook (PDF)
--------------------------------------------------------------------------
Session 2 Section 30: Feb 24 Section 31: Feb 19
Long run growth. Production functions.
Read before class: Production Function (Ch. 3) | Notes on Solow model | (Ch. 4)
View Short Video Before Class: Gapminder
Due beginning of class: Problem set #0 | Solutions
Slides: PPT Solow Model Workbook: XLS Depreciation Rates Article (PDF; interesting tables at the end)
UN Human Development Indicators: Explorer
Optional readings:
GS (using Solow model to make growth predictions in 2003): PDF
GS progress report on BRICs predictions: PDF The Economist blog: Backlash against BRICs Backlash
--------------------------------------------------------------------------
Session 3 Section 30: Mar 3 Section 31: Feb 26
Technology and institutions.
Read before class: Sources of Economic Growth (Ch. 5) | Institutions and Policies (Ch. 6)
Due beginning of class: Problem Set #1 | Country data | Solutions (Excel, Figures)
Slides: PPT
Useful links:
World Bank Governance Indicators World Bank Doing Business in…
Transparency International Corruption Index
Optional readings:
Citi Growth Model (PDF) Diamond of Sustainable Growth (PDF) Bernanke Speech
Guns, Germs, and Steel Investment in China Where was China? Easterly
--------------------------------------------------------------------------
Session 4 Section 30: Mar 10 Section 31: Mar 5
Consequences of globalization. Who gains from trade, who loses?
Read before class: International Trade (Ch. 9)
Practice problem set: PDF | Solutions
Slides: PPT
Optional readings:
The Economist on the Smoot-Hawley Tariff The NYT on Chinese Solar Panels
The NYT on China's take on Chinese Solar Panels FRBSF Note: The US Content of 'Made in China'
Bastiat on the "Negative Railroad"
--------------------------------------------------------------------------
Session 5 Section 30: Mar 24 Section 31: Mar 12
Labor markets.
Read before class: Labor Markets (Ch. 7)
Due beginning of class : Problem Set #2 | Solutions | Solow Workbook with TFP Growth
Practice Problem Set: PDF | Solutions Slides: PPT Dynamic Unemployment Model Workbook: (XLS)
Optional readings:
2010 Nobel Prize in Economics: Search Theory WSJ article: Why Labor Surveys Tell Two Stories
--------------------------------------------------------------------------
Session 6 Section 30: Mar 31 Section 31: Mar 26
Midterm exam. Solutions
First half summary: Pg. 41-43 Exam strategies: PDF Practice Exam: PDF | Solutions
--------------------------------------------------------------------------
Session 7 Section 30: Apr 7 Section 31: Apr 2
Business cycle indicators. What is money ? Hyperinflations.
Read before class: Business-Cycle Properties (Ch. 10) | Business-Cycle Indicators (Ch. 11) | Money and Inflation (Ch. 12)
Correlation explained simply (link) CCF basic example (XLS) CCF workbook (XLS)
Slides: PPT
--------------------------------------------------------------------------
Session 8 Section 30: Apr 14 Section 31: Apr 9
AS/AD theory. Monetary policy I.
Read before class: Aggregate Supply and Demand (Ch. 13) | Policy in the AS/AD Model (Ch. 14)
Cooley-Rupert Snapshot
Slides: PPT
--------------------------------------------------------------------------
Session 9 Section 30: Apr 21 Section 31: Apr 16
Monetary policy II. How does the central bank manage interest rates ?
Read before class: Money and Interest Rates (Ch. 15)
Due beginning of class: Problem Set #3 | Solutions
Fed policy game
Slides: PPT
--------------------------------------------------------------------------
Session 10 Section 30: Apr 28 Section 31: Apr 23
Fiscal policy; taxes and deficits.
Read before class: Taxes (Ch. 16) | Debt and Deficits (Ch. 17)
Slides: PPT
Optional readings:
Glaeser: Limits of our Knowledge Mankiw: The Day When the Debt Comes Due
CBO: The Long-Term Budget Outlook (February 2014) CBO: The Outlook for Health Care Spending (slide show)
--------------------------------------------------------------------------
Session 11 Section 30: May 5 Section 31: Apr 30
Macroeconomic Crises.
Read before class: Macroeconomic Crises (Ch. 21) and "Cross of Euros" (PDF)
Due beginning of class: Problem Set #4 | Solutions | Workbook
Slides: PPT
Optional reading:
The Economist blog: "The Euro Crisis -- A Three-Headed Beast"
--------------------------------------------------------------------------
Session 12 Section 30: May 12 Section 31: May 7
Final exam.