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Economy in the Long Run: Monetary System, Unemployment and Inflation

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A Teaching Topic in Fiscal, Monetary and Tax Policy

Economy in the Long Run: Monetary System, Unemployment and Inflation

This topic introduces and explores fundamental macroeconomic concepts surrounding monetary system, unemployment and inflation.

Topic Learning Outcome: Students will be able to gain a sophisticated understanding of how the macroeconomic economy operates in the long run and how public policies affect it and are affected by it.

Core Concepts associated with this Topic:

Recommended Readings:

Rutgers (Bloustein): 34:833:610 (Macroeconomics for Public Policy)

William J. Baumol and Alan S. Blinder, Macroeconomics Principles and Policy, 12th Edition, Thomson, Southwestern, 2012. Chapter 17 (The Trade-Off between Inflation and Unemployment)

University of Michigan: Public Policy 556 (Macroeconomics)

Mankiw, N. Gregory. 2013. Macroeconomics, Eighth Edition, New York: Worth Publishers. Chapter 4 (The Monetary System: What It Is and How It Works), Chapter 5 (Inflation: Its Causes, Effects, and Social Costs), & Chapter 7 (Unemployment and the Labor Market)

DeLong, J. B., “Hopeless Unemployment,” Project Syndicate, July 31st 2012.

U.S. Monetary Policy: Part 1: How Is The Fed Structured And What Are Its Policy Tools? January 16, 2004 FRBSF Economic Letter.

Applebaum, B. “Economists are Different from You and Me.” New York Times, Economix blog, December 2nd, 2013.

New York University Wagner School: GP.21380 (Macroeconomics, Global Markets, and Policy)

Krugman and Wells (2013). Macroeconomics, 3rd edition, Worth Publishers. Chapter 7 (The National Accounts), Chapter 8 (Unemployment and Inflation) & Chapter 14 (Money, Banking and Federal Reserve System)

Institute of International Finance (2014) Capital Markets Monitor, January.

BEA (2007) ``Comparing the Consumer Price Index and the Personal Consumption Expenditures Price Index,’’ Survey of Current Business, November.

Buiter W., Rahbari E., Seydl J. (2014) ``Secular Stagnation: Only If We Really Ask For It,’’ Citigroup Research, January.

Cao Y., Shapiro A.H. (2013) ``Why Do Measures of Inflation Disagree?’’ FRBSF Economic Letter, 2013-37, December.

Keister T., Martin A., McAndrews J. (2008) “Divorcing Money from Monetary Policy,” FRBNY Economic Policy Review, September.

Pozsar Z., Adrian T., Ashcraft A., Boesky H. (2010) “Shadow Banking,” FRBNY Staff Reports No.458, July (revised February 2012).

Yermack D. (2013) “Is Bitcoin a Real Currency?” NBER, Working Paper 19747, December.

Harvard University Kennedy School: API-121 (Macroeconomic Theory and Policy)

Macroeconomics, Seventh Edition, by N. Gregory Mankiw, New York: Worth Publishers, 2010. Chapter 13 (Aggregate Supply and the Short-run Tradeoff Between Inflation and Unemployment), Chapter 6 (Unemployment) & Chapter 15 (Stabilization Policy)

Espinosa-Vega, Marco A., and Russell, Steven, “History and Theory of the NAIRU: A Critical Review,” Economic Review, Federal Reserve Bank of Atlanta, Second Quarter 1997, pp. 4-25.

Chang, Roberto, “Policy Credibility and the Design of Central Banks,” Economic Review, Federal Reserve Bank of Atlanta, First Quarter 1998, pp.4-15.

Supplementary Readings:

  • Curve Ball,” The Economist, Sep 28, 2006.
  • "Put Out,” The Economist, Jul 2, 2009.
  • “Separation Anxiety,” The Economist, Oct 1, 2009.
  • “The Logical Floor,” The Economist, Dec 14, 2013.
  • “Jobless Aid Splits Parties, Experts,” Wall Street Journal, Dec 11, 2013.
  • “Economic Growth Slows, Prices Rise,” Wall St. Journal, Jul 29, 2006, p.A3.
  • “When Hawks Cry,” The Economist, Sep 11, 2008.
  • “Off Message,” The Economist, Apr 7, 2011

University of Toronto: PPG-1003 (Macroeconomics for Policy Analysis)

Principles of Macroeconomics – (Sixth Canadian Edition) by N. Gregory Mankiw, Ronald D. Kneebone and Kenneth J. McKenzie. Thomson-Nelson 2013. Chapter 14 (Aggregate Demand and Aggregate Supply) & Chapter 15 (The Influence of Monetary and Fiscal Policy on Aggregate Demand)

Page created by Sean Goertzen and Ben Eisen on 18 April 2015, last edited by James Ban on 4 September 2015.


Important Notices
© University of Toronto 2008
School of Public Policy and Governance