Midterm Review Cards For Int Macro- Papers

Front 1

Who says that the economic shocks in 2008 were as great as 1929?

Back 1

Christina Romer

Front 2

What are the 3 parts of the proposed regulatory reform by Christina Romer?

Back 2

1) Give the Federal Reserve authority over all financial entities, whether or not they are a "bank"
2) Council of regulators that will identify risky financial innovations
3) Resolution Authority- similar powers as the FDIC for non-bank financial institutions
4) Consumer Financial Protection Agency

Front 3

Christina Romer argues that ________ reform is needed to recover from the 2008 crisis.

Back 3

regulatory

Front 4

"Concentrating responsibility in one place guarantees the American people that accountability will be centered in one place as well." - who is this?

Back 4

Christina Romer

Front 5

Who said this: "But there are also strong forces for stagnation:a quarterof the 60 countries with initial per capita GDP of less than $1000 in 1960 have had growth rates less than zero, and a third have had growth rates less than .05 percent.

Back 5

This is from the "Divergence, Big Time" essay by Lant Pritchett.

Front 6

What is argued about inequality in regards to education and technology in the United States by Katz?

Back 6

“In the first half of the century,” the authors summarize, “education raced ahead of technology, but later in the century technology raced ahead of educational gains.” Katz argues that we need to improve access to education for those in the innercity in order to improve quality of life for these folks.

Front 7

What's the big "kicker" for Katz in the article about education and technology?

Back 7

And here’s the kicker: the big variable appears to be changes in the pace of educational attainment rather than changes in technological progress. Stripped to essentials, the ebb and flow of wage inequality is all about education and technology. The bottom line here is that labor-market- based efforts to reduce inequality depend on increasing the supply of educated workers.

Front 8

What is the "kleenex contract"?

Back 8

A hotly debated french law known as the First Employment Contract that allows employers to fire new workers under the age of 26 without cause for two years.

Front 9

What is the current US unemployment rate?

Back 9

9.6%

Front 10

What is the Bank Crisis in Afghanistan?

Back 10

Afghan and American officials say the two men presided over the bank in a reckless and freewheeling manner, doling out millions to allies of President Hamid Karzai and pouring money into risky investments that crashed. Depositors have pulled out hundreds of millions in a matter of days.

Front 11

What is Obama's new tax break plan?

Back 11

Obama will propose that companies be allowed to more quickly write off 100% of their new investment in plants and equipment through 2011.

Front 12

What are the 4 main main points from the Krugman response to the Obama's proposed $50 billion in new spending on infrastructure?

Back 12

$50 billion in new spending:

1. It’s a good idea
2. It’s much too small
3. It won’t pass anyway — which makes you wonder why the administration didn’t propose a bigger plan, so as to at least make the point that the other party is standing in the way of much needed repair to our roads, ports, sewers, and more– not to mention creating jobs.

Front 13

What is the response from Mankiw to the $50 billion in tax cuts and spending on infrastructure?

Back 13

This policy proposal is a step in the right direction, but it is too small and modest. Put another way, this policy can be seen as giving firms a zero-interest loan if they invest in equipment. But with interest rates near zero anyway, the value of the loan is not that great.

Front 14

What happened to real wages in the manufacturing sector during the first 2 years of the great depression?

Back 14

Among the manufacturing sector, nominal wage did not decrease but the price level dropped, so the real wage increased significantly for those that did hold on to their jobs.

Front 15

How did firms during the great depression benefit by not cutting wages?

Back 15

wages would maintain the purchasing power of workers.6By the late 1920s the popular and business presses almost uniformly included high wages as a cornerstone of prosperity.

Many employers were involved in the governments efforts to stem deflations.

Front 16

Why did manufacturers such as steel manufactures, that do not rely on consumer demand, not cut wages and free ride on the other manufacturing sectors?

Back 16

1) It would have been a PR nightmare because wage regulations were an encouraged practice in all media & trade journals.

Front 17

What reasons are there for wage maintenance during the great depression?

Back 17

1) Multi-year union contracts
2) Internal labor markets where wages are attached to jobs rather than workers
3) Contracts negotiated on nominal not real wages

Front 18

What are the three groups of people that Krugman say stand in the way of extending unemployment benefits?

Back 18

The heartless (republicans blocking anything Obama tries), the clueless (people that think that people are choosing to stay jobless), and the confused (people that think that is it is a disincentive to seek work).

Front 19

"One main reason there aren’t enough jobs right now is weak consumer demand. Helping the unemployed, by putting money in the pockets of people who badly need it, helps support consumer spending." What is this a statement in support of?

Back 19

Krugman is saying this in support of extending unemployment benefits.

Front 20

Where is there currently hyperinflation?

Back 20

Zimbabwe!