ECS-3003.U01

Comparative Economic Systems

Prof. Alan Gummerson

Fall, 2015

 

Syllabus

 

Texts

Krugman, Paul.  End This Depression Now!  2013.  Paperback.  Norton  ISBN 978-0393345087

 

Additional readings will be online.

 

Grades

Grades will be based on three exams, of equal weight, to be held in class on

September 24 (11am), October 29 (11am), and December 10 (at 9:45am).

Exams will cover what we have read and discussed in class, and may include essays, short answers, and/or multiple choice questions.

 

Course objective:  Our main goals will be to increase our understanding of how modern capitalist economies work, to better understand how such economies can fall into crises, to understand what kind of policies can alleviate such crises, to understand what kind of policies can fail to alleviate or even aggravate such crises, and to get a grasp of how the global capitalist economy functions.

 

Paul KrugmanÕs End this Depression Now! will be the main text for this course.  The book addresses all of the course objectives described in the previous paragraph.

 

Supplementary readings:

 

For free access to the New York Times (for reading KrugmanÕs op-ed columns on Mondays & Fridays:  nytimes.com/passes   Use your fiu.edu email address. 

 

KrugmanÕs very useful blog is at Krugman.blogs.nytimes.com

 

Slides on Labor Market, 11/11/15

 

Gummerson, Monetary Policy in a Liquidity Trap

 

Slides from Class on Money, Interest, Prices

 

ARRA from Blinder and Zandi

 

Blinder and Zandi, The Financial Crisis:  Lessons for the Next One

 

Bernstein on Blinder and Zandi

 

            Chart Book: The Legacy of the Great Recession—Center on Budget and Policy Priorities        

 

            Paul Krugman on Charlie Rose:  The Current World Situation

 

            Martin Wolf on Charlie Rose:  The Crisis and the Future

 

            Krugman on Ricardian Equivalence

 

            Krugman on Liquidity Trap, Loanable funds

 

            Krugman:  IS-LMentary

 

            The Gold Standard and the Depression

 

            Koo:  The World in Balance Sheet Recession (slides)

 

            Stockman, State-Wrecked: The Corruption of Capitalism in America

 

 

 

After we finish the Krugman book we will take up some or all of the following topics, time permitting:

 

China and the World Economy

 

China: Taking a Tumble. The Economist, 27 Aug 2015

 

Lecture on Balance of Payments

 

Lecture on Exchange Rates

 

 

Eurocrisis

 

While the Krugman book addresses this issue, we will update his analysis with more recent articles, which will be posted here:

 

 

 

 

Secular Stagnation

 

            This term refers to the notion that the advanced economies may have entered a period of long-term low growth, due to factors such as the slow growth of population and the depletion of investment opportunities, among others.  Readings for this topic will be posted here:

 

*Demography and Secular Stagnation, The Economist, 22 Nov 2014

 

*Secular Stagnation:  Facts, Causes, and Cures.  Coen Teulings, Richard Baldwin 15 August 2014   Chapters by Summers, Eichengreen, & Krugman

 

            A Model of Secular Stagnation (Abridged)

 

            Video of Larry Summers on Secular Stagnation at London School of Economics.  Google LSE podcasts.  Find January 20, 2015 podcast.

 

Automation/Robots

 

            The fear that computers are taking jobs away from humans is widespread.  We will investigate the merits of the idea, with readings posted here:

 

            *The Economist, Wealth Without Work, 4 October 2014

 

            The Economist, The Third Great Wave, 4 October 2014

 

         * Journal of Economic Perspectives, Summer, 2015

                        articles by Autor and Mokyr

 

Inequality of Income and Wealth

 

            Perceived growing inequalities in capitalist economies has risen to be a political issue in the U.S., Europe, and elsewhere.  We will examine the data on the distribution of income and wealth in the U.S., and look at possible ways of addressing the problem, with readings posted here:

 

Wade on Piketty

 

          *Krugman on PikettyÕs Capital in the 21st Century

 

          *Piketty on AtkinsonÕs Inequality

 

            Solow on Piketty

 

Students should become aware of FIUÕs definitions of and policies toward academic misconduct. The UniversityÕs policies may be found on the FIU web-site at:  Code of Academic Integrity and Academic Misconduct.