Comments on: Homework assignment: modern macro book outine

By: pushmedia1

pushmedia1 — Sat, 17 Jan 2009 21:02:20 +0000

Given what we’ve learned in macro in the last 60 years (i.e. the ineffectiveness of fiscal policy at least in “normal” times), I’d say the study of fiscal policy is a descriptive science, i.e. political economy. Growth policy is normative.

By: Gabriel

Gabriel — Sat, 17 Jan 2009 20:01:24 +0000

I meant that if the set of policy instruments is the same, it’s hard to tell them apart.

Re: fiscal policy, sure, there’s a problem about whether you want to teach “optimal policy” or “political equilibrium policy”, but I see little coverage of that in undergraduate texts.

By: pushmedia1

pushmedia1 — Sat, 17 Jan 2009 17:32:22 +0000

“Growth policy” is growth policy not fiscal policy. It may be enacted through the same political process, but we’re not political scientists.

By: Gabriel

Gabriel — Sat, 17 Jan 2009 07:37:04 +0000

P.S.

“Labor or leasure choice” … this is way over-emphasized. There’s little variation on that margin, at all interesting frequencies.

“Growth policy”… Uh… Fiscal policy, you mean?

By: Gabriel

Gabriel — Sat, 17 Jan 2009 07:34:58 +0000

Teach from your notes, if you have the power to decide what to use.

Then again, the only different I see between your outline and some textbooks is the ordering of subjects. Charles I Jones might have a textbook (intermediate) you’d like.