Bristol 3rd year undergrad macro/monetary topics option 2015

3rd Year Undergraduate option:  Current Economic Problems

Topic 1:  The Eurozone crisis

Lecture 1:  the causes and consequences of the Eurozone crisis

Slides  PPT

Slides  pdf

Lecture 2:  evaluating policymaking responses to the Eurozone crisis

Slides:  PPT

Slides:   pdf


Tutorial set reading is Lane, P (2012) ‘The European Sovereign Debt Crisis’, Journal of Economic Perspectives

Essay question:  ‘Characterise the Eurozone crisis and assess it’s possible causes’

Discussion topics:  evaluate the idea of a banking union;  should EZ debt be mutualised or not?  What is the German approach to monetary and fiscal policymaking, and where does it come from?  Consider ethical dimensions of the EZ crisis.  Consider political economy dimensions to the EZ crisis.

Topic reading list you don’t have to read everything on this list, but I’d recommend at least skimming everything.


Topic 2:  Should we raise the inflation target ?

Slides:  pdf   [combined slides for lectures 1 and 2]

Slides:  PPT


Set reading:  Blanchard et al (2010) ‘Rethinking macroeconomic policy’, IMF.

Essay question:  what factors determine the optimal inflation rate?

Discussion topics:  assess efficacy of unconventional monetary policies;  should business cycles be smoothed or not?  The Friedman Rule;  shoe-leather costs of inflation.

Topic reading list