Economia
V, Spring 2000 Home Page
Marco
Del Negro
Welcome to the Eco5 home page!
Announcements:
.
Office: CIE, Camino Sta. Teresa
email: delnegro@itam.mx
Phone: 628 4197, ext. 2962
Office hrs: by appointment
Laboratorista: Mario Robles Balderrama,
mrbalderrama@yahoo.com
Laboratorio every Monday from
15:00 to 16:00, Room 112, Rio Hondo
Office Hours every Thursday
from 15:00 to to 16:00, Room 206, Rio Hondo
(many thanks to George Hall for
letting me use his lecture notes as source of inspiration for this class)
Note: Copies of the articles can
be found at 'Coffee and Copies'
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Syllabus
PART I: MEASURING THE ECONOMY
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Class
1: INTRODUCTION, Figure
1 (real GDP per capita), Figure
2 (real GDP per worker)
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Class
2: MEASURING THE ECONOMY
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Toling from there to here [The Economist,
Jan. 22 2000]
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The price of everything, the value of nothing
[The Economist, July 31 1993]
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Class
3: INFLATION, CONSUMER PRICE INDEX, AND RELATIVE PRICES., Figure
3 (comparisons of "real" GDPs)
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And now prices can be "virtual" too [The Economist]
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More than meets the eye [The Economist, Jan. 8
1993]
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Class
4: SAVINGS, WEALTH, AND THE CURRENT ACCOUNT, Figure
4 (Twin deficits in Mexico), Mexico's balance of payments (here),
Figure
5 (Mexico's external balance)
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Viewing the Current Account Deficit as a capital
Inflow (here)
['Current Issues in Economics and Finance' of the Federal Bank of New
York]
PART II: CONSUMPTION AND SAVINGS IN CLOSED
AND OPEN ECONOMIES
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Class
5: CONSUMPTION: THE INTERTEMPORAL CHOICE Figure
6 (Growth Rates for Consumption and GDP, Mexico), Figure 7 (the
real
interest rate and the
business cycle in Mexico), Figures 5.1,
5.2,
5.3,
5.4
Real life example of 'saving
for rainy days'; from The Wall Street Journal , 'Misery Among Plenty',
pg. R13, January 11, 1999: "Itinerant electrician Arturo Chavero [...]
is a member of the country's lowest urban class. Six days a week
for the past ten years, Mr. Chavero has squatted [...] by the shadow of
mexico City's towering baroque cathedral and waited patiently for people
to hire him. [...] In a good week can make as much as $150, through in
a bad one this drops to $60 or even less. 'If things go well one week,
then I have to save so that when a bad week comes, we can survive', says
Mr. Chavero"
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Class
6: TAXES IN THE INTERTEMPORAL MODEL: RICARDIAN EQUIVALENCE ,
Figure
8 (Saving and fiscal policy in Mexico), Figures 6.1,
6.2,
6.3
Summary
of Classes 5 and 6
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The public purse [The Economist, Nov. 24
1990]
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Class
7: THE DETERMINANTS OF THE CURRENT ACCOUNT (ENDOWMENT ECONOMY),
Growth and the Currrent Account in Mexico
and Chile (here),
Figures 7.1,
7.2,
7.3
PART III: PRODUCTION AND INVESTMENT
IN CLOSED AND OPEN ECONOMIES
-
Class
8: THE PRODUCTION FUNCTION, Figure 8.1
Example of increase in A (productivity):
changes in the production process at the Ford factory in Highland Park,
Detroit, Michigan, in 1914; from The Wall Street Journal, 'The Line
Starts Here', pg. R13, January 11, 1999: "The men kept refining the system,
using a stopwatch to time each operation [..] The results were stunning.
In early December, it took more than nine hours to get out a complete chassis
[..] On Dec. 30, 'it took about two hours and forty minutes for each chassis.'
By April 30, 1914, [..] 'we assembled 1212 chassis in one eight hour day,
which gave us one hour and 33 minutes of one man's time [per car] as against
12 hours and 28 minutes..."
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Class
9: INVESTMENT IN A CLOSED ECONOMY, Figures 9.1,
9.2,
9.3
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Rattling the piggy bag [The Economist, My
6 1995]
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Class
10: THE INTEREST RATE IN A CLOSED ECONOMY WITH PRODUCTION
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Class
11: INVESTMENT AND CAPITAL FLOWS IN A SMALL OPEN ECONOMY, Figures 11.1,
11.2,
11.3,
11.4
"The
entrepreneur shifts economic resources out of an area of lower and into
an area of higher productivity and higher yield"
Jean-Baptiste Say (~1800)
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Capital controversies [The Economist, May 23 1998]
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Too little, not too much [The Economist, June
24 1995]
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Of take-offs and tempests [The Economist, March
14 1998]
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One world? [The Economist, Oct. 18 1997]
PART IV: THE LABOR MARKET
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Class
12: LABOR DEMAND AND LABOR SUPPLY, Figures 12.1,
12.2,
12.3,
12.4
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Class
13: EQUILIBRIUM IN THE LABOR MARKET , Figure 13.1
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U or O?
Greatest
Hits I
PART V: GROWTH
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Class
14: ECONOMIC GROWTH: SOME EMPIRICAL REGULARITIES
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The road to riches [The Economist, Dec.
31 1999]
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Where Hong Kong has the edge [The Economist, Aug.
22 1992]
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Class
15: THE SOLOW GROWTH MODEL, Figures 1,
2,
3
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Class
16: THE GOLDEN RULE OF CAPITAL ACCUMULATION AND THE SOLOW GROWTH MODEL
WITH EXOGENOUS TECHNOLOGICAL PROGRESS
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What drives economic growth over the very long
run?
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It's education, stupid: Why East leads West [The
Wall Street Journal]
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Class
17: THE CONVERGENCE CONTROVERSY
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Class
18: ENDOGENOUS GROWTH
PART VI: MONEY, MONETARY POLICY, AND
EXCHANGE RATES
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Class
19: MONEY
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Class
20: MONEY SUPPLY AND MONEY DEMAND, the report on Monetary Policy
from Banco de Mexico (here),
Assets
and Liabilities
of the Banco de Mexico
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Class
21: INFLATION AND SEIGNORAGE
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Class
22: MONETARY POLICY AND THE UNEMPLOYMENT/INFLATION TRADE OFF
Problem Sets:
Links to data sources:
data on Mexico: click here
international data (main economic indicators from
OECD): click here
international data (long term growth) from Penn World
Table: click here
read about the 1994 financial crises in Mexico (here)
read all about the financial crises in Asia (here)
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read pdf files! However, you can download it for free by clicking here
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