More reading, the Fed and AIG

Don't forget that the Fed's own website is a valuable and very accessible resource for you.

Here are press releases on the Fed's actions this past year RE: AIG.

First, the original decision to lend $85 million to AIG. Pay attention to the reasons given at the time of the loan.

Second, the Fed and the Treasury restructured their support of AIG. The details of this are a bit technical but you can wade through it to get a general understanding.

Finally, a more definitive restructuring of that support as financial markets continued to decline earlier this year.

You can also read about the whole crisis in a pretty decent summary on wikipedia.

What you should be reading

From the Washington post. Very thoughtful, some might say "middle of the road" piece. Hat tip: Mankiw.

More links to help you out this weekend

A very thorough summary of pros and cons of the Bernanke Fed for your perusal.

For those of you absent today, here are the documents I handed out.

#1: the paper due next Wednesday. Feel free to post any questions here or email me.

#2: Study Guide for the final exam. Stop by to get your old tests to help you study.

I AM STILL MISSING A FEW ESSAYS FROM THE LAST TEST FROM SOME OF YOU. THEY MUST BE TURNED IN MONDAY OR YOU WILL RECEIVE A ZERO ON THAT PORTION OF THE TEST. NOT GOOD FOR YOUR GRADE.

Finally, remember if you are interested in taking the AP Macroeconomics exam in the spring, you should stop by for a conversation with me about signing up and preparation. I am trying to get a rough head count of general interest, so even if you are just thinking about it, let me know. 

Behold! Your econ teacher is a (near) genius.

Unemployment falls to 10%. I predicted it would decline to 10.1. Skeptics can stop by the office and view the evidence of my prescience scrawled in the front cover of my textbook.

Highlights from Bernanke's testimony this morning

Here are some preliminary remarks from Bernanke for you to consider in preparing for class on Friday. Remember to bring in as homework an opinion article on the role of the Fed. You can read all of Bernanke's prepared remarks here.

Here is another article that gives a little more context.

The key question is: should the Fed be more closely regulated by Congress, or should it actually be given MORE independent regulatory authority? And, of course, why or why not?

Homework for December 2

Use one of the online resources in the left column (Wall St. Journal, NY Times, Financial Times, etc.) to find and print out an article on the dollar relative to some other currency. Read it, annotate, and bring in for class discussion tomorrow.

Homework - break

Just a reminder to read the final (!) chapter, 19, of the textbook over the long weekend. When you come back we will wrap it in with final thoughts on chapter 18.

For those of you interested, here are links to an interesting debate between two economists on the value of Chinese currency:

Read this first, then this.

The first author thinks that the US is better off with China artificially manipulating its currency, the second disagrees. If anyone wants to read these and begin class Monday with some discussion, we would certainly add it to the docket.

Homework for Tuesday, November 23rd

Good job in class today. Here are 3 more sets of graphs for homework.

1. The Bank of Japan tightens its monetary policy to raise interest rates.
2. There is an increased flow of Japanese investment funds into the United States.
3. Responding to American pressure, the Japanese reduce their barriers to imports.

Remember, draw two graphs for each, as we did in class today.

There will be no assigned work for Wednesday, you will read the final chapter of the textbook for the following Monday. Maybe you want to get started on that early...

Proceeding with caution - tomorrow's homework

For tomorrow, read chapter 17. You can skim most of it, focusing on the blue summaries and margin definitions. The one section I recommend you read more carefully is pages 343-347, on the Arithmetic and Graphing of Comparative Advantage.

STUDY GUIDE and notes from Wednesday

Download here the study guide for the test on Tuesday.

Here are notes from Wednesday for those of you who missed class.

Markets

Here is a nice summary of what is going on with the stock market and what is behind it all. I know we do not spend a lot of time on this in class, and I am sure some of you are interested in financial markets.

Homework through November 18th

Due Wednesday, November 11th: Read chapter 16 in the textbook.

Monday: review

Tuesday: test on 11-16.

Wednesday: take-home component of the assessment due.

Homework due Monday, November 9th

Read chapter 15 in the textbook. Easy stuff. We will wrap up our last "debate" from chapter 14 to begin class, then move to chapter 15.

Homework for Friday (due on Friday)

Answer questions 5 and 8 on page 297. For question #8 you will need to do a little research. See what you can come up with.

Big news on unemployment benefits

Senate approves an extension.
We've been talking about this in class.

Recent stuff

This article on New Keynesian economics might be of interest.

Here is a good summary of what's going on with the economic recovery.

Readings for 10.29 - 11.06 (yes, it's November)

For Tuesday:

NYTimes on Ben Bernanke.  Be sure to click "read more" at the bottom of the column.

On Bernanke's recommendations for regulating banks.

Here is a summary of what congress wants to do.

Financial Times columnist Martin Wolf has some suggestions.

A lot of this is still about the banking crisis and not as much about the Federal Reserve System. We are at the intersection of chapters 12 and 13. But I feel that this is worth spending one more class on.

Tuesday's class: discussion of the above articles using chapter 13.

For Wednesday: Questions on 13

For Thursday, Read chapter 14


For Fri, TBA, but probably short writing assignment

Homework for this week.

We'll take it a couple of days at a time this week.

For Wednesday, come with any questions you have on chapters 11 and 12. After Wednesday I will assume you fully understand those chapters.

For Thursday, read chapter 13.

I was wrong!!

It turns out that $5s, $10s, and $20s are the bills most likely to be contaminated with cocaine.

It must be the recession.

Say hello to Dylan Robert Eason!

            Say hello to Dylan Robert Eason!

Homework due Thursday, October 15th

Here are a couple of articles on the winners of the Nobel Prize for Economics. You should know about them. Read for Thursday and we will discuss them if time allows.

From the Wall Street Journal
From the New York Times

Remember, quiz on Friday covering vocab, 3 reasons (each) for downward/upward slope of AD and AS, and a hypothetical scenario-based short answer question.

Homework Oct. 6-9

For Wednesday: Because there has been some confusion and I told some people one thing, others something else, no homework for Wednesday, Oct. 7. I will bring some articles and materials for discussion.

For Thursday: Read chapter 9.

For Friday: Readings on the Multiplier (handed out in class)

Homework for the week of 9.28

For Tuesday: Economic Growth Profile Research.

Note that the regions underlined on the second page are hyperlinks to the World Bank's website for your region.
For those of you who were absent, here are the countries I would like you to briefly research:
Sydney: Bangladesh
Hannah: Lebanon
Fitz: Venezuela
Directions should be clear.
Did I catch everyone? If you don't have a country email jeason@usmk12.org and I'll assign you one.

For Wednesday: Read chapter 8

For Thursday: Create a study guide for your test on Tuesday. If I like your ideas, I'll incorporate them into the test.

For Friday: Harford, chapter 3.

Test on chapters 5-8 on Next Tuesday.

Homework for Monday, Sept. 28th

Just to clarify: the homework for Monday is to read chapter 7 of the textbook.

Homework question for 9.24 (C-Day)

Again, with sincere apologies to those of you who labored for today. Bring answers to those questions and I will look over them for a grade as promised.

For 9.24: Given the Hurricane Andrew scenario, where an increase in demand created a higher price and quantity demanded for bottled water, but a price ceiling created a shortage: what alternative steps might a government take to bring quantity supplied and quantity demanded in line at the same, pre-hurricane equilibrium price?

For E-day, Monday September 28th, read chapter 7. We should be able to knock out inflation (our discussion of it, that is) and the rest of ch6 tomorrow in class.

Excellent discussion today. Be sure to speak up, you all have good insights.

Link to Unemployment Data

Here is the link to the entire BLS labor report from class on Friday.

Homework for Wednesday (after the retreat)

First, answer two of the following questions - be sure to answer thoroughly, as I would like to pick this up for a homework grade.

1. Explain how the current US tax system levies taxes on capital gains and earned interest. What does this mean for the costs of inflation?
2. Does inflation always cause workers losses due to decreases in real wages? Why or why not?
3. What is a GDP deflator? Why do some economists consider the GDP deflator to be a better measure of overall inflation than CPI?

Second, take a look at the latest CPI statistics at the BLS website and come prepared to discuss. Read especially the sections explaining how CPI is calculated and at changes over the past few years.

Homework for Cycle 3

For Tuesday, Sept. 15th: Read chapter 5 of your text. Come with notes and questions.

For Wed., Sept. 16th: Answer 5 of these 7 questions. In class we will survey the US Economy since the Great Depression

For Fri., Sept. 18th: Read chapter 6. Come with notes and questions

Test 1 Study Guide

Click here for the test 1 study guide. It is the same as the one you received in class.

Homework this week and into next

Here is an update on homework for this week:

For Thursday, September 10th (E)
Read the Introduction (don't skip it!) and Chapter 1 of Harford's The Undercover Economist. Come ready to discuss. I think you will enjoy this book and should have a lot to talk about.

For Friday, Sept. 11th (F)
Read Chapter 2 of Harford. We'll spend half of class on this and half discussing Monday's test.

For Monday, Sept. 14 (A)
Test on chapters 1-4.

Articles from Friday, 9.04

For Tuesday, you should read chapter 4 in the textbook.

Here are links to today's article.

Few expect progress at Doha
Make sure you understand what the Doha talks are, why they are important, and the role the US has played.

Here are some articles we did not get to, but hopefully will eventually:

US loses to Brazil (not just for soccer fans)
Remember that barriers to trade are not just tariffs.

On the jobs report
The economy lost not so many jobs. This is good news? Read the fine print. (Here from BLS)  Look especially at the data concerning discouraged workers.

But maybe there is good news after all.

Homework: September 1 - 11

For Tuesday, Sept. 1 (E)
B&B 2 w/ notes and questions. Be sure to know and be able to use the key terms. Think especially about questions 3,4, and 6.

For Wed., Sept. 2 (F)
For tomorrow, listen to this interview on digital music and answer the questions found here. Provide well-reasoned answers, particularly for the second section of questions: be creative but also base your answers on what we have covered in the text.

For Thu., Sept. 3 (A)
Read B&B 3. Read and answer a few of the TEST YOURSELF questions.

For Fri., Sept. 4 (B)
Read the article from the Economist handed out in class today or found here. You must come to class with: 1. a basic understanding of the author's argument, 2. questions regarding the details of the article that you do not understand, and 3. a critique or critical question of some aspect of the article.
Come with a marked text and prepared to discuss with one another intelligently.

For Tue., Sept. 8 (C)
B&B 4 - further instructions TBA

For Thu., Sept. 10 (E)
TBA

For Fri., Sept. 11 (F)
Harford, Ch1

Day 1

From class discussion on Wednesday:

Robert Skidelsky, August 5th, 2009

Ben Stein

Homework: August 26-28

For Thursday, Aug. 27 (B)
Prepare for Quiz on The China Fantasy

For Friday, Aug. 28 (C)
Read B&B 1, come ready for discussion with notes and questions

For Tuesday, Sept. 1 (E)
Read B&B 2, come ready for discussion with notes and questions
   

Course Syllabus

Instructor: Mr. Eason
Office: 4229
Email: jeason@usmk12.org
Texts:
Baumol, William J. and Alan S. Blinder, Macroeconomics: Principles & Policy, 11th Edition, Mason, OH: Southwestern Cengage Learning, 2009 (B&B)
Harford, Tim, The Undercover Economist, New York: Random House, 2007 (Harford)
Other readings as assigned

Syllabus:
This course introduces students to the basic principles of the discipline of economics, especially macroeconomics. The class will teach students to perceive world events, government policies, and much of modern history through the eyes of the economist, to “think economically.” This semester, we will divide the study of economics into four parts, as follows:
     I.   Fundamental Economic Principles
     II.   Understanding the Macroeconomy: Basic Measures
     III.   Stabilizing the Macroeconomy: Fiscal and Monetary Policy
     IV.   Trade, Exchange, and the Open Economy

Expectations and Tasks:
1. Keep up with current economic events and issues by reading The Wall Street Journal, Financial Times, The Economist or other sources of your choice.
2. Read all assigned readings pertaining to each topic and come prepared to discuss.
3. Study the Key Terms and Discussion Questions at the end of each chapter. These are an excellent way to prepare for quizzes and tests.  In fact, some of these questions and problems or their modifications may appear on quizzes or tests. They may also be assigned as homework.
4. Participate in class discussion, feel free to ask questions and take notes.
5. Please respect the rights of your fellow classmates to a quiet and orderly class atmosphere.
6. Academic dishonesty will absolutely not be tolerated.



Assessment:
First Quarter (40% of your semester grade)
Homework and Class Participation                20%
Tests and Quizzes                                         60%
Summer Reading Quiz                                   20%

Second Quarter (40% of your semester grade)
Homework and Class Participation                20%
Tests and Quizzes                                         40%
Class Project and Paper                               40%

Final Exam (20% of your total grade)

Course Schedule

The course schedule aims to provide you with a general sense of how the class will advance in reading the textbook and Harford. It is organized by cycle. The class website will provide you with more specific assignments, from both the books and from online articles and additional work on a weekly basis. As a major feature of this class will be discussion based on current economic events, there will certainly be changes made regularly to the overall schedule.

Cycle 1: Wed. 8.26 – Wed. 9.02
Course Introduction
Summer reading discussion and quiz
 What is Economics? (B&B 1)
The Economy: Myth and Reality (B&B 2)

Cycle 2: Th. 9.03 – F. 9.11
Scarcity and Choice (B&B 3)
Supply and Demand (B&B 4)

Hartford chapter 1

Cycle 3: M. 9.14 – Th. 9.17
Review

Test 1

Introduction to Macroeconomics (B&B 5)
**Senior Retreat**

Cycle 4:  Tu. 9.22 – Tu. 9.29
**Senior Retreat**
Macroeconomic Policy (B&B 6)
Economic Growth (B&B 7)

Cycle 5: W. 9.30 – W. 10.07
Aggregate Demand (B&B 8)

Harford 2 & 3

Review

Test 2

Demand-Side Equilibrium (B&B 9)

Cycle 6: Th. 10.08 – F. 10.16
Supply-Side: Recessions and Stabilization (B&B 10)

Harford 4, 5

Quiz on chapters 9-10

End Quarter 1

Cycle 7: M. 10.19 – M. 10.26
Fiscal Policy (B&B 11)
Money and Banking (B&B 12)
Monetary Policy (B&B 13)

Cycle 8: Tu. 10.27 – W. 11.04
Combining Monetary and Fiscal Policy (B&B 14)

Harford 6

Review

Test 3

Budget Deficits (B&B 15)

Cycle 9: Th. 11.05 – M. 11.16
Inflation and Unemployment (B&B 16)

Harford 7,8

Quiz 2

International Trade (B&B 17)

Cycle 10: Tu. 11.17 – Tu. 11.24
The International Monetary System (B&B 18)
Exchange Rates and the Macroeconomy (B&B 19)

Cycle 11: M. 11.30 – M. 12.07

Harford 9, 10

Projects

Cycle 12: Tu. 12.08 – F. 12.11

Projects

Review

Final Exam