Macroeconomic Accounting
Introductory
- Taking the Pulse of the Economy: Measuring GDP
[Landefeld.Seskin.Fraumeni-2008-JEP]_
- Why Has the U.S. Net Foreign Asset Position Weakened?
https://www.stlouisfed.org/on-the-economy/2015/august/us-deteriorating-net-foreign-asset-position);
- Exports to Mars
- Taking the Pulse of the Economy: Measuring GDP
[Landefeld.Seskin.Fraumeni-2008-JEP]_
- What Is the Balance of Payments?
[Fieleke-1996-FRBBSR]_
Advanced
- Balance of Payments and International Investment Position Manual
[IMF-2009-BPIIPM6]_ https://www.imf.org/external/pubs/ft/bop/2007/bopman6.htm
- NIPA Handbook
- Beyond GDP? Welfare across Countries and Time
[Jones.Klenow-2016-AER]_ suggest a better measure of welfare than GDP.
- A Guide To U.S. Chain Aggregated NIPA Data
[Whelan-2002-RIW]_ explains the Commerce Department’s switch to chain aggregation and shows how this affects our understanding of how information technology is changing the U.S. economy.
- National Accounts & Economics: A Study in Concepts
Utz-Peter Reich Plagrave October 2001 isbn: 0-333-73391-6
Stylized Facts
- Growth and the Kaldor Facts
[Herrendorf.etal-2019-FRBSLR]_ discuss the Kaldor facts in the context of a multi-sector growth model.
- The New Kaldor Facts
[Jones.Romer-2010-AEJMacro]_
- A Model of Economic Growth
[Kaldor-1957-EJ]_
Financial Programming
Core Resource:
- Balance of Payments and International Investment Position Manual
[IMF-2009-BPIIPM6]_
Recommended Reading:
- Quarterly National Accounts Manual? Concepts, Data Sources, and Compilation
[Bloem.Dippelsman.Maehle-2001-IMF]_
- Feeding the National Account
[Ritter-2000-FRBSLR]_ (and Ritter data); describes the data sources for the National Income and Product Accounts (NIPA).
Global Financial Markets
Introductory
- The Anatomy of the Global FX Market through the Lens of the 2013 Triennial Survey
[Rime.Schrimpf-2013-BISQR]_
- Under the Microscope: The Structure of the Foreign Exchange Market
[Sager.Taylor-2006-IJFinEc]_
Supplementary
- NDF update
- Foreign Exchange Market: Institutional Structure, Regulation, and Policy Implications
[Fei.Zhao-2017-JFinEcon]_
- All About ... the Foreign Exchange Market in the United States
[Cross-1998-FRBNY]_ (esp. ch 2,3,5);
- Changing Fortunes
[Milesi-2009-FinDev]_
Money and Inflation
- Long-Run Evidence on Money Growth and Inflation
[Benati-2009-ECBwp1027]_
- Long-run Money Demand Redux
Luca Benati, Robert Lucas, Juan Pablo Nicolini, Warren E. Weber, 11 March 2017, https://voxeu.org/article/long-run-money-demand-redux
- Zaire's Hyperinflation, 1990—1996
[Beaugrand-1997-IMFWP]_
- “On the Stability of Money Demand”
[Lucas.Nocolini-2015-JME]_ shows that regulations of the early 1980s, which considerably weakened Regulation Q, explain the apparent an instability of money demand. Constructs a more stable monetary aggregate that performs well for the period 1915–2012.
Unconventional Monetary Policy
- Monetary Finance: Do Not Touch, or Handle with Care?
[Agur.etal-2022-IMF]_ considers the use and effectiveness of unconventional monetary policy (and in particular, monetary finance).
Monetary Approach
Core Reading
- A Monetary Approach to the Exchange Rate
[Frenkel-1976-ScanJE]_ (on Reserve);
Supplementary Reading
- Open Economy IS-LM
[Mark-2001-Blackwell]_ ch. 3.2
- The Monetary Model Strikes Back
[Cerra.Saxena-2010-JIE]_ provides more recent evidence in favor of the monetary approach.
- The Case for Flexible Exchange Rates, 1969
[Johnson-1969-FRBSLR]_ http://research.stlouisfed.org/publications/review/past/1969/
- The Monetary Approach to The Exchange Rate—Some Empirical Evidence
[Bilson-1978-IMFSP]_ provides early evidence in favor of the monetary approach.
- On the Mark: Comment
Driskill, R.A. and S.M. Sheffrin, 1981, AER 71, 1068--74.
- Monetary approach. Real exchange Rate
[Mark-2001-Blackwell]_ ch. 2.4, 3.1, 7 provides a textbook discussion.
- The Economics of Exchange Rates: Selected Studies
[frenkel.johnson-1978]_
Asset Price Bubbles
- A Simple Perfect Foresight Monetary Model
[Brock-1975-JME]_
- Market Fundamentals versus Price-Level Bubbles: The First Tests
[Flood.Garber-1980-JPE]_
Purchasing Power Parity
- The Purchasing Power Parity and Exchange-rate Economics Half a Century On
[Vo.Vo-2022-JEconSurveys]_
- Long-run Purchasing Power Parity Redux
[Papell.Prodan-2020-JIMF]_
- The Purchasing Power Parity Debate
[Taylor.Taylor-2004-JEP]_
- International Prices and Exchange Rates
[Burstein.Gopinath-2014_Helpman.etal]_ https://www.nber.org/papers/w18829
- A Prism into the PPP Puzzles: The Micro-Foundations of Big Mac Real Exchange Rates
[Parsley.Wei-2007-EJ]_ explore micro-foundations for Big Mac real exchange rates.
- Purchasing-Power Parity: Definition, Measurement, and Interpretation
[Lafrance.Schembri-2002-BCR]_ https://www.bankofcanada.ca/research/conferences-workshops/revisiting-case-flexible-exchange-rates/
- Estimating the Border Effect: Some New Evidence
[Gopinath.etal-2009-NBER14938]_
- PPP Strikes Back: Aggregation and the Real Exchange Rate
[Imbs.etal-2005-QJE]_
- Does ‘Aggregation Bias’ Explain the PPP Puzzle?
[Chen.Engel-2005-PacificEconRev]_ find that aggregation bias does not help explain PPP puzzle.
- Exchange Rate Economics
[Isard-1995-CambridgeUP]_ ch. 4
- Exchange Rates and Inflation
[Dornbusch-1988-MITPress]_ ch. 13
Classic Articles
- Purchasing Power Parity: Doctrinal Perspectives and Evidence from the 1920s
[Frenkel-1978-JIE]_
- Burgernomics: A Big Mac (TM) Guide to Purchasing Power Parity
[Pakko.Pollard-2003-FRBSLR]_
- Inflation, Exchange Rates and PPP in a Multivariate Panel Cointegration Model
[Jacobson.etal-2008-TrixJ]_
Productivity Bias Hypothesis
- The Purchasing Power Parity and Exchange-rate Economics Half a Century On
[Vo.Vo-2022-JEconSurveys]_
- Relative Labor Productivity and the Real Exchange Rate in the Long Run: Evidence for a Panel of {OECD} Countries
[Canzoneri.Cumby.Diba-1999-JIE]_
- The ‘Real’ Explanation of the PPP Puzzle
[Ford.Horioka-2016-NBERw22198]_
Institutions and Stability
European Stability Mechanism
ESM (cont.)
Resources: Recommended but not required.
- Video: Klaus Regling: Lessons From The Euro Crisis
- Video: 2021 ESM Reform
- More institutional details:
- More history (online book):
https://www.esm.europa.eu/publications/safeguarding-euro
book promotional video: https://www.youtube.com/watch?v=JzxiuJ_R32k
- ESM blog: