LINKS TO OTHER WEB MATERIALS, READINGS AND ANALYSES ON MACROECONOMIC TOPICS

This set of links below presents articles, analyses, sources of data and other information available on the Internet on the various topics discussed in the macro course. The material is divided in topics classified according to the range of subjects covered in the course.



1. MEASURING MACROECONOMIC PERFORMANCE

Chapter 1. Economic Policy for the 21st Century. Economic Report of the President, 1996. The Economic Report of the President is written every year by the Council of Economic Advisors and presents an excellent introduction to US macroeconomic conditions and policies.Chapter 1 is a good starting point summarizing the main macro issues.

Economic Report of the President, 1997.  The latest Report, issued in February 1997, is now on line. You ought to be interested in the thinking of the Council of Economic Advisers on some of the topics that we have been discussing. In particular: Changes in NAIRU (the equilibrium unemployment rate) - Chapter 2, pp. 43-45. CPI Measurement issues - Chapter 2, pp. 67-72. Growth and Productivity - Chapter 1, pp. 28-37. Social Security - Chapter 3, pp. 98-117. Increasing inequality of the earnings distribution - Chapter 5.

Measuring the National Economy A set of notes discussing in detail national income concepts such as value added, GDP, GNP and their measurement problems.

Using the Chain-Weighted Measure to Recalculate GDP
This is a brief note explaining the new method 'chain-weight' method used (since December 1995) to compute GDP.

Economic Statistics Briefing Room (ESBR) - White House
This part of the White House web site offers summary data and graphs of macroeconomic series. While the series are relatively short, it is convenient to have summary information in one place with links to the originator. Data is organized in the following categories: output; income; employment, unemployment, and earnings; production and business activity; prices; money, credit, and securities markets; transportation; and international statistics. Excellent resource for latest data on the business cycle.

Economic Chart Dispenser (ECD)
This is a great resource for analyzing U.S. macro data. You can use a simple form to choose hundreds of macro series, choose the sample period, chart the series and transform the charts in several useful formats (such as levels and rates of change).


2. BUSINESS CYCLE INDICATORS.

Chapter 2. Economic Report of the President, 1996 Macroeconomic Policy and Performance.
Chapter 2 of the 1996 Economic Report of the President is an excellent summary of current US macroeconomic conditions and policies.

"Economic Trends" by the Research Department at Federal Reserve Bank of Cleveland
An excellent montly source for analysis and charts of US business cycle conditions. Latest economic statistics are charted and the current state of the economy is discussed in detail. Topics analyzed include: The Economy in Perspective, Monetary Policy, Inflation and Prices, Economic Activity, Labor Markets, Regional Conditions, Agricultural Policy, Banking Conditions, International Trade, Global Savings and Investment.

Business Cycle Indicators from Media Logic
Media Logic presents U.S. aggregate data (all 256 series from the BEA's Survey of Current Business). The series are freely available in both graphical and numerical form. The graphical form is from their program, and the numerical form is in .wks files. Excellent source of data on the US macroeconomy. The graphs of macroeconomic variables show the peaks and throughs of U.S. business cycle: this is very useful to observe the business cycle properties of various macroeconomic variables.

Morgan Stanley Global Economic Forum
This service (led by Stephen Roach, chief economist at Morgan Stanley and a leading Wall Street economist) offers a daily view on macroeconomic affairs and events around the world. This is the best daily source of information and commentary on current macroeconomic conditions in US, Europe, Japan, Canada and selected deveoping countries. On each business day, a number of issues are discussed. Back issues are available as well. An excellent source of analysis and information on macroeconomic conditions and policies in industrial and emerging markets.

Economic Time Series Page
Many more macro series from the same source as the Economic Chart Dispenser (ECD). However, you cannot chart them in the same graphical format as the ECD nor transform the data in various (level and rate of change) formats. Still, you can create simpler charts, look at the data and download them.

FRED Database of Macroeconomic Data
At FRED, you find thousands of macro series from the database of the Federal Reserve Bank of St. Louis. One of the largest collections of data on the U.S. economy.

Krugman on Nairu and Inflation
An article by an leading international economist discussing why the U.S. economy cannot grow faster than current rates without an increase in inflation and why a policy goal of zero inflation is misguided.

Predicting Real Growth Using the Yield Curve
The yield curve, which relates interest rates to notes and bonds of various maturities, is often used by economists and business analysts to predict future economic growth. But how reliable is it ? The above paper written by two economists at the Cleveland Fed shows that although the yield curve is a good predictor over the entire 30-year sample period, it has become much less accurate over the last decade. The article is a bit technical but quite an interesting reading.


3. INTERNATIONAL INDICATORS

Chapter 8. Economic Report of the President, 1996. The United States in the World Economy
Chapter 8 of the 1996 ERP is a first rate discussion of the international dimensions of US macroeconomic issues.

Olsen & Associates
The Olsen & Associates web site is a good source of forecasts on exchange rates from a leading private forecasting service.

International Economics Gateway
This site offers links to sites with non-U.S. data. These links are broken up into two classifications: international organizations, and national governments. There is an extensive list of links to many developed and developing countries official government sites offering macroeconomic data and information on macroeconomic policies.

Financial Information Services: World Economic Window
This site offers a variety of economic data for 30 countries around the world (mostly industrial but also some developing countries). They offer only graphs of the data but the information can be very useful for country project assignments.


4. PRODUCTIVITY AND GROWTH.

Chapter 7. Economic Report of the President, 1996. Investing in Education and Training.
Chapter 7 of the 1996 ERP presents a good discussion of productivity, technological development and education issues for the US.

Growth Project at the World Bank
A systematic source of information and data on growth and development issues.


LONG-RUN THEORY


5. SAVINGS AND INVESTMENT IN CLOSED AND OPEN ECONOMIES.

Chapter 8. Economic Report of the President, 1996. The United States in the World Economy
Chapter 8 of the 1996 ERP is a first rate discussion of the international dimensions of US macroeconomic issues.

Krugman on Supply Side Economics and Its Decline.
These are two articles by Krugman from Slate (an on-line magazine) on Supply Side Economics and its Its Decline.

Tax Cuts and Growth
This is an analysis of why tax cuts may not increase economic growth, i.e. why supply side economics may be flawed.


6. MONEY, INFLATION AND FINANCIAL ASSETS.

M2 Growth in 1995: A Return to Normalcy
Stability of the demand for monetary aggregates is a crucial condition for using such aggregates as the main instrument of monetary policy. This article written by two Cleveland Fed economists discusses the recent instability of monetary aggregates in the US.

Inflation Targets: The Next Step for Monetary Policy
There has been recently a lot of discussion on whether central banks should follow policies of inflation targeting. This article by a Cleveland Fed economist addresses this important policy question.

Board of Governors of the Federal Reserve System
The Board of Governors of the Fed (whose Chairman is Alan Greenspan) has a WEB site offering a wealth of information, analysis and data on US monetary policy. The other 12 Federal Reserve Banks of the Federal Reserve system have also their WEB sites with information and analysis. Particularly useful and rich in content are the the following ones:

Federal Reserve Bank of New York
Federal Reserve Bank of Chicago
Federal Reserve Bank of Cleveland
Federal Reserve Bank of Minneapolis

Stephen Roach on Inflation
A Wall Street view by the chief economist at Morgan Stanley on the risks of renewed inflation in the near future.

Eisner on Nairu and Inflation
An article by an leading economist on why the risks of renewed inflation are overstated and why the economy can grow faster than current rates without an increase in inflation.


7. EXCHANGE RATES.

Chapter 8. Economic Report of the President, 1996. The United States in the World Economy
Chapter 8 of the 1996 ERP is a first rate discussion of the international dimensions of US macroeconomic issues, with a particular attention to exchange rates, trade deficits and international competitiveness issues.


SHORT-RUN THEORY
 


8. MONEY, INTEREST RATES AND EXCHANGE RATES (FIXED EXCHANGE RATE REGIMES AND THEIR COLLAPSE)

World Bank Page on the Mexican Peso Crisis
The World Bank web site has an excellent page on the Mexican Peso Crisis of 1994-95. You can find here data, analysis and contrasting views on the causes of the Peso crisis.

Mexico Ministry of Finance Web Site
This site offers a wealth of current macro data on the Mexican economy. While the data at this site covers just the last few years, it is rather broad. In addition, various reports and documents on the Mexican economy are available as well. This is an excellent resource for a country study of Mexico.

Frankfurt Money Strategist
This is is a research resource originally conceived in late 1992 to Focus on the German Bundesbank - which continues to set interest rates for most of the European Continent. FMS provides information for global investors seeking a deeper understanding of Deutschmark and DM-linked currency, bond and derivatives markets, and broad analyses of European Monetary Union.



 

9. THE KEYNESIAN THEORY. THE IS/LM MODEL.

Chapter 2. Economic Report of the President, 1996 Macroeconomic Policy and Performance.
Chapter 2 of the 1996 Economic Report of the President is an excellent summary of current US macroeconomic conditions and policies.

Simulations of the Effects of Macro Policies from A Macroeconomic Model
Macroeconomic Advisers LLC, previously "Laurence H. Meyer & Associates, Ltd" is a privately owned corporation that specializes in macroeconomic forecasting and policy analysis. Its founder Lawrence Meyer is now a governor of Board of Governors of the Federal Reserve System. They built, maintain and support the Washington University Macroeconometric model of the United States Economy (WUMM). At this site they offer a fairly detailed description of their model and Simulations of the Effects of Monetary Policy and Fiscal Policy. The responses can be compared to those implied by a IS/LM model.

The Ray Fair Macroeconomic model simulations
FAIRMODEL is another large macroeconometric model developed by Ray Fair, A Yale economist. At its WEB site you can use the model to forecast the economy, do policy analysis, and examine historical episodes. For example, you can change government policy variables and examine the estimated effects of the changes on the economy.


10. THE IS/LM MODEL  IN AN OPEN ECONOMY. MONETARY AND FISCAL POLICY UNDER FIXED AND FLEXIBLE RATES.

Chapter 8. Economic Report of the President, 1996. The United States in the World Economy
Chapter 8 of the 1996 ERP is a first rate discussion of the international dimensions of US macroeconomic issues, with a particular attention to exchange rates, trade deficits and international competitiveness issues.



11. FISCAL POLICY AND BUDGET DEFICITS

Chapter 3. Economic Report of the President, 1996. Making Fiscal Policy Choices within and Across Generations
Chapter 3 of the 1996 ERP presents an analysis of the fiscal and budget problems faced by the US economy.

Simulations of the Effects of Fiscal Policies from A Macroeconomic Model
Macroeconomic Advisers LLC built, maintain and support the Washington University Macroeconometric model of the United States Economy (WUMM). At this site they offer a fairly detailed description of their model and Simulations of the Effects of Fiscal Policy.

A Simple Proposal for Privatizing Social Security
Privitazing the Social Securty System is a hot topic. At the Cleveland Fed site there is an interesting article discussing this issue.

Making Sense of the Federal Budget Impasse
What are the fiscal problems faced by the US economy ? This article by an economist at the Cleveland Fed addresses this issue in detail. 


12. MONETARY POLICY.

Purposes and Functions of the Federal Reserve System
This is an excellent Fed publication describing the goals and functions of Federal Reserve System.

Central Banking Resource Center
At the site you can find an extensive set of links to central banks around the world and WEB sites with central banking information.

Minutes of the Federal Open Market Committee
The Minutes of each meeting of the FOMC are made available a few weeks after the next regularly scheduled meeting .

The Beige Book
Commonly known as the Beige Book, the "Summary of Commentary on Current Economic Conditions by Federal Reserve District" is a report published eight times a year in preparation of the FOMC meetings. Each Federal Reserve Bank gathers anecdotal information on current economic conditions through reports from Bank and Branch directors, interviews with key businessmen, economists, market experts, and other sources.


Author: Nouriel Roubini, Stern School of Business, New York University.