BOSTON COLLEGE Department of Economics. UNCS 2245 Freshman Topic Seminar Fall 2014 Maloney 394

Transcription

1 BOSTON COLLEGE Department of Economics UNCS 2245 Freshman Topic Seminar Bob Murphy Fall 2014 Maloney 394 Wednesday 3:00, Stokes Hall 103S Office Hours: T,Th 2-3 & by appt. Phone: Advising the President: Macroeconomic Policy and the Council of Economic Advisers Purpose of Course: This advising seminar will explore macroeconomic policy in the United States over the past half century using as a primary historical source the annual reports of the Council of Economic Advisers to the President of the United States as presented in the Economic Report of the President. We will assess the policy agenda of various White House administrations, with a particular focus on the response to economic crises and problems. In addition, we will discuss the institutional arrangements of policy advising, including the Employment and Growth Act of 1946 and its subsequent amendments, as well as the interaction of White House administrations with the Federal Reserve. Readings and Assignments: I provide below in the course outline links to the Economic Report of the President for various years along with links to some material from the Federal Reserve. The complete set of Economic Reports can be found at: I also will from time to time send you additional articles for our discussion in class. You should read the assigned materials before class. To help spur discussion, I ask you to to me by 3:00 p.m. on Tuesday the 2 or 3 items in the readings for the next day that you found most interesting, and the 2 or 3 items that you found most confusing. I will also assign a short (5 to 6 page) writing assignment (due November 12) on a macroeconomic issue of your choice one that you would like to know more about. Current Economic News: I encourage you to follow current economic issues by reading on a daily basis one of the major national newspapers (e.g., The Wall Street Journal, The New York Times, and The Washington Post). Fortune, Business Week and the Economist magazines also are good sources for keeping up on economic events. We frequently will discuss in class the relevant economic news of the day. If you find an article of interest, the link to me and I may forward it to the class. Advising: This course also is intended to help as you settle in at Boston College. We will use part of the class time to discuss how things are going. I will serve as your advisor for the year and look forward to meeting each of you individually in two scheduled meetings, and, I hope, at other times as well. We also will attend a cultural event in downtown Boston and have dinner one night at my house near Newton Centre. The best way to reach me is through my address: murphyro@bc.edu. Please be sure to check your BC address (or forward it to your personal address) for messages from me (and from BC in general). Grading: This course is a Pass/Fail one-credit class. A passing grade requires regular attendance, participation in class discussion, and completion of the writing assignment described above.

2 2 Course Outline with some important BC events and dates in italics For Class of 2018 Welcome Week activities, see: Sunday, August 31 at 6:30: Opening reception at the McMullen Museum (in Devlin Hall) for exhibit on Wilfredo Lam: Imagining New Worlds. September 3: Introductions and Course Description Kate Zernike, The Harvard Guide to Happiness, New York Times, April 8, (Do any of these 7 pieces of advice surprise you? How many will you do?) September 5, Friday, 10 am - 2 pm, on Middle Campus: Student Involvement Day. All registered BC student organizations will be available to answer your questions, and to recruit you! Sometime soon, maybe right now! Complete the Academic Integrity Tutorial on Canvas!! September 9, Tuesday, 7:00 pm in Lyons Dining Hall: Volunteer Fair. Learn about the various ways you can serve others during your time at Boston College. (Scroll to the bottom.) September 10: Economic Policy and the Legacy of the Great Depression. Gary Richardson, The Great Depression, 100 Years, Federal Reserve System, (Note: To commemorate its 100 th anniversary, the Fed has created detailed historical timeline of important economic events over the past century. This is a great source for paper topics. See Patricia Waiwood, Recession of , 100 Years, Federal Reserve System, Christina D. Romer, The Nation in Depression. Journal of Economic Perspectives, 7(2): The History Channel, (What are the government s macroeconomic policy tools? Can you point to some of the causes of the Great Depression? How bad was it? Did policy choices possibly contribute to its severity? What ultimately led the economy to recover?) September 10, Wednesday: Last day to drop courses on your own, on-line, without a W (withdrawal) appearing on your transcript. September 11, Thursday: Mass of the Holy Spirit at noon, O Neill Plaza (in Conte, if rain)

3 3 September 11, Thursday: Conte Forum, at 7:00: First Year Academic Convocation, preceded by a BBQ on the Stokes Lawn at 5:00 and the First Flight Procession at 6:00. September 17: The Employment Act of 1946 and The Council of Economic Advisers. Aaron Steelman, Employment Act of 1946, 100 Years, Federal Reserve System, Council of Economics Advisers, First Annual Report to the President, December 1946, Parts I and II, Appendix (skim). Council of Economics Advisers, Second Annual Report to the President, December 1947, pp Joy Zhu, Federal Reserve Reform Act of 1977, 100 Years, Federal Reserve System, Aaron Steelman, Full Employment and Balanced Growth Act of 1978 (Humphrey-Hawkins), 100 Years, Federal Reserve System, (Did the federal government s role in the economy change as a result of the Great Depression? If so, in what way did it change? What goals for policy have been codified in federal law? Do you think this has been a good thing? What policy institutions (within the Federal Reserve, White House, Congress) have been developed to support these goals? September 24: The New Frontier s Economic Program Council of Economic Advisers, Economic Report of the President, 1962, Chapter 1, pp , 68-77, 84-91, and Chapter 2, pp (What was the state of the economy that the Kennedy Administration inherited? What sort of policies did they propose? Can you explain why these policies made sense? What is the difference between growth policy and stabilization policy?) September 26-28: Parents Weekend at Boston College. October 1: Vietnam and the Overheating Economy Council of Economic Advisers, Economic Report of the President, 1968, Chapter 2, pp , 82-89, and Chapter 3, pp , Michael Bryan, The Great Inflation, 100 Years, Federal Reserve System, (Why did price inflation begin to increase? How did this present an obstacle to fulfilling the employment goals of the Employment Act of 1946? What sorts of policies were discussed and/or proposed to address the problem of rising inflation?)

4 4 October 1, Wednesday: Last day to drop courses in your Associate Dean s office, without a W (withdrawal) appearing on your transcript. October 2, 7:30: Sweeney Todd at the Lyric Stage, 140 Clarendon St., Boston, Copley Square T stop. Don t be late! October 8: The New Economic Policy Sandra Kollen Ghizoni, Nixon Ends Convertibility of U.S. Dollars to Gold and Announces Wage/Price Controls, 100 Years, Federal Reserve System, Council of Economic Advisers, Economic Report of the President, 1972, Chapter 1, pp , Chapter 2, pp.73-76, and Chapter 5, pp Council of Economic Advisers, Economic Report of the President, 1973, Chapter 2, pp , (skim), 60-70, and Chapter 3, pp Council of Economic Advisers, Economic Report of the President, 1974, Chapter 3, pp , (What were the two main elements of the New Economic Policy? What were the economic problems they were intended to address? Were the price-control policies successful in reducing inflation? Or did events simply overwhelm any benefit they might have had?) October 13, Monday: Columbus Day no classes October 15: The Oil Price Shocks of the 1970s Michael Corbett, Oil Shock of Years, Federal Reserve System, Laurel Graefe, Oil Shock of Years, Federal Reserve System, Council of Economic Advisers, Economic Report of the President, 1976, Chapter 1, pp , and Chapter 2, pp , Council of Economic Advisers, Economic Report of the President, 1980, Chapter 1, pp Council of Economic Advisers, Economic Report of the President, 1981, Chapter 1, pp , (Why do oil price shocks pose a dilemma for macroeconomic policy? How did policy respond to these shocks? Did policymakers respond differently in the two episodes?)

5 5 October 22, 3:00 PM: Meet with Jessica Hartley at the Boston College Career Center, 38 Commonwealth Avenue, just west of the B-line T stop. October 24, Friday: Complete the Academic Integrity Tutorial on Canvas by this date. October 29: The Reagan Revolution and the Recession Council of Economic Advisers, Economic Report of the President, 1982, Chapter 1, pp , Chapter 2, pp , Chapter 3 (skim), Chapter 5, pp , , Council of Economic Advisers, Economic Report of the President, 1983, Chapter 1, pp Bill Medley, Volcker's Announcement of Anti-Inflation Measures 100 Years, Federal Reserve System, (How were the policies of the Reagan Administration a sharp break from the past? What might you point to as a cause of (or at least intensifying factor for) the recession of ? What was the rationale for cutting taxes? Was it to stimulate spending?) November 5: The Great Moderation: Policy in the 1990s and early 2000s Craig Hakkio, The Great Moderation 100 Years, Federal Reserve System, Council of Economic Advisers, Economic Report of the President, 1996, Chapter 2, pp , Council of Economic Advisers, Economic Report of the President, 2005, Chapter 2, pp (What are the hypotheses for why economic growth, unemployment, and inflation became less volatile in the 1990s and early 2000s? How much credit should go to economic policy measures?) November 12: The Great Recession of 2007 to 2009 (writing assignment due) John Weinberg, The Great Recession and Its Aftermath 100 Years, Federal Reserve System, Robert Rich, The Great Recession of Years, Federal Reserve System, Council of Economic Advisers, Economic Report of the President, 2010, Chapter 2. (What were the causes of the financial crisis and Great Recession? Why has it taken so long to recover from it? What policy measures were used to confront the problem? What sort of constraints made it necessary for policymakers to adopt novel approaches?)

6 6 November 19, 6:30 pm: Dinner at my house (short walk from Newton Centre but will arrange transport) November 26-28: Happy Thanksgiving! December 1, Monday: Last day to withdraw from a course, but with a W on your transcript December 1-2, Monday - Tuesday: Class of 2018 registers for the spring semester December 11-12, Thursday - Friday: Study Days, with no classes for undergraduates December 13-20, Saturday - Saturday: Final Exams (Good luck!!)