Macroeconomic policy
Luis Bryce
Fall 2013
Suggested papers for presentations:
I-
Government debt and fiscal policy
1)
Debt overhang
Jean Imbs & Romain Rancière, 2005. “The Overhang Hangover”, Swiss Finance Institute Research Paper Series
06-03, Swiss Finance Institute
http://ideas.repec.org/p/chf/rpseri/rp0603.html
Giroud, Xavier, Mueller, Holger M., Stomper, Alex and Westerkamp, Arne, Snow and Leverage (October 2010).
NBER Working Paper Series, Vol. w16497, pp. -, 2010.
http://www.mit.edu/~xgiroud/Snow.pdf
2)
Taxes: Ricardian equivalence and its limits
Bayoumi, Tamim & Masson, Paul R, 1998. "Liability-Creating versus Non-liability-Creating Fiscal Stabilisation
Policies: Ricardian Equivalence, Fiscal Stabilisation, and EMU," Economic Journal, Royal Economic
Society, vol. 108(449), pages 1026-45, July
http://ideas.repec.org/a/ecj/econjl/v108y1998i449p1026-45.html
Parker, Jonathan & Nicholas S. Souleles, David S. Johnson, Robert McClelland (2012). Consumer Spending and
the Economic Stimulus Payments of 2008. Forthcoming, American Economic Review.
http://www.kellogg.northwestern.edu/faculty/parker/htm/research/PSJM2013.pdf
Bassetto, Marco and Narayana Kocherlakota (2004). On the irrelevance of government debt when taxes
are distortionary. Journal of Monetary Economics.
http://www.sciencedirect.com/science/article/pii/S0304393203001430
3)
The effect of government spending
Almunia, Miguel, Agustín S. Bénétrix, Barry Eichengreen, Kevin H. O’Rourke, and Gisela Rua (2009), “From
Great Depression to Great Credit Crisis: Similarities, Differences and Lessons,” Economic Policy.
http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0327.2010.00242.x/abstract
Antonio Acconcia & Giancarlo Corsetti & Saverio Simonelli, 2011. "Mafia and Public Spending: Evidence on
the Fiscal Multiplier from a Quasi-experiment," CEPR Working Paper.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1810270
Ethan Ilzetzki, Enrique G. Mendoza, Carlos A. Vegh (2012). How Big (Small?) are Fiscal Multipliers? Journal
of Monetary Economics.
http://www.sciencedirect.com/science/article/pii/S030439321200116X
Eggertsson, Gauti and Krugman, Paul (2010), “Debt, Deleveraging, and the Liquidity Trap”, Quarterly Journal
of Economics.
Article: http://qje.oxfordjournals.org/content/127/3/1469.full.pdf
VOX column: http://www.voxeu.org/index.php?q=node/5823)
4)
The political economy of government spending
Alesina, Alberto, Ricardo Hausmann, Rudolf Hommes, and Ernesto Stein (2006). Budget institutions and fiscal
performance in Latin America. Journal of Development Economics, vol. 59, pg. 253-273.
http://www.sciencedirect.com/science/article/pii/S0304387899000127
Perotti, Roberto and Yianos Kontopoulos (2002). Fragmented fiscal policy, vol. 86(2), pg. 191-222.
http://www.sciencedirect.com/science/article/pii/S0047272701001463
II-
Financial markets
1) The balance-sheet channel
Ben Bernanke; Mark Gertler; Simon Gilchrist (1996), “The Financial Accelerator and the Flight to Quality”, The
Review of Economics and Statistics, Vol. 78, No. 1. (Feb., 1996), pp. 1-15
http://people.bu.edu/sgilchri/research/restat_96.pdf
Bernanke, Ben S & Gertler, Mark, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy
Transmission," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages
27-48, Fall http://www.jstor.org/stable/pdfplus/2138389.pdf
Gertler, Mark & Gilchrist, Simon, 1994. "Monetary Policy, Business Cycles, and the Behavior of Small
Manufacturing Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 309-40,
May http://www.jstor.org/stable/pdfplus/2118465.pdf
Campello, Graham and Harvey (2012), “The real effect of financial constraints: Evidence from a financial crisis”,
Journal of Financial Economics.
http://www.sciencedirect.com/science/article/pii/S0304405X10000413#
Aghion, Marinescu, "Cyclical budgetary policy and growth: what do we learn from OECD panel data?",
Macroeconomics Annual 2007, Volume 22 (p. 251 - 278) http://www.nber.org/chapters/c4081.pdf
2) The bank-lending channel
Puri, Rocholl and Steffen (2012) “Global retail lending in the aftermath of the US financial crisis: Distinguishing
between supply and demand effects”, Journal of Financial Economics.
http://www.sciencedirect.com/science/article/pii/S0304405X10002904#
Adrian and Shin (2008), “Financial Intermediaries, Financial Stability, and Monetary Policy”
http://www.jstor.org/stable/25592465http://papers.nber.org/papers/w18335?utm_campaign=ntw&utm_medium=
email&utm_source=ntw
Schularick and Taylor (2012): “Credit booms gone bust: Monetary policy, leverage cycles and financial crises,
1870-2008”, forthcoming American Economic Review.
http://www.econstor.eu/bitstream/10419/37515/1/VfS_2010_pid_34.pdf
III-
The crisis
1) The panic of 2007
Gorton and Metrick (2012), “Securitized banking and the run on repos”, Journal of Financial Economics.
http://www.sciencedirect.com/science/article/pii/S0304405X1100081X
Brunnermeier, Markus (2009), “Deciphering the Liquidity and Credit Crunch 2007–2008”, Journal of Economic
Perspectives—Volume 23, Number 1—Winter 2009—Pages 77–100,
http://www.princeton.edu/~markus/research/papers/liquidity_credit_crunch.pdf
Nicola Gennaioli & Andrei Shleifer & Robert W. Vishny, 2011. A Model of Shadow Banking. The Journal of
Finance.
http://onlinelibrary.wiley.com/doi/10.1111/jofi.12031/abstract
Nicola Gennaioli & Andrei Shleifer & Robert W. Vishny, 2010. Neglected Risks, Financial Innovation, and
Financial Fragility. Journal of Financial Economics.
http://www.sciencedirect.com/science/article/pii/S0304405X11001176
2) Monetary policy during the crisis
Ben S. Bernanke & Vincent R. Reinhart & Brian P. Sack, 2004. "Monetary Policy Alternatives at the Zero
Bound: An Empirical Assessment," Brookings Papers on Economic Activity, Economic Studies
Program, The Brookings Institution, vol. 35(2), pages 1-100
http://ideas.repec.org/a/bin/bpeajo/v35y2004i2004-2p1-100.html
Gauti B. Eggertsson, 2008. Great Expectations and the End of the Depression, American Economic Review.
http://www.jstor.org/stable/29730131
Cecchetti (2008), “Monetary Policy and the Financial Crisis of 2007-2008”,
http://www.cepr.org/pubs/PolicyInsights/PolicyInsight21.pdf
Annette Vissing-Jorgensen and Arvind Krishnamurthy (2011) The Effects of Quantitative Easing on Interest
Rates: Channels and Implications for Policy, with Arvind Krishnamurthy, Brookings Papers on
Economic Activity, Fall 2011.
http://www.brookings.edu/~/media/files/programs/es/bpea/2011_fall_bpea_papers/2011_fall_bpea_conference_
krishnamurthy.pdf
3) Sovereign debt and banks
Reinhart and Rogoff (2011), “From financial crash to debt crisis”, American Economic Review.
http://scholar.harvard.edu/files/rogoff/files/from_financial_crash.pdf
Patrick Bolton & Olivier Jeanne, 2011. "Sovereign Default Risk and Bank Fragility in Financially Integrated
Economies," NBER Working Papers 16899, National Bureau of Economic Research, Inc.
http://ideas.repec.org/p/nbr/nberwo/16899.html
Nicola Gennaioli & Alberto Martin & Stefano Rossi, 2012. "Sovereign Default, Domestic Banks and Financial
Institutions," Working Papers 622, Barcelona Graduate School of Economics.
http://ideas.repec.org/p/bge/wpaper/622.html