Economics 500: Macroeconomic Theory and Policy

homework5.pdf

I was checking things and realized that I never posted the last homework.  No one asked me about it either.  (Hoping I would forget?)

This was to be the last one anyway, and since we have two weeks left, it's not a problem.  We'll make it due on the 11th, and we'll have plenty of time to discuss it.

It's probably better this way... the first problem probably would have made your Thanksgiving break rather miserable.

Not just rules vs. discretion, but rules vs. rules.  Friedman's money growth rule and Taylor's interest rate rule are described in this very accessible paper.

Understanding the Term Structure of Interest Rates  by William Poole

Economic Growth and the Real Interest Rate  by William Poole

The first one is more directly relevant to class.

And as long as I'm giving you some things written by Poole, you might want to download this:

Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model

I'd plan on this perhaps for next Tuesday.