In class on Tuesday we looked at a lot of pictures from the IMF World Economic Outlook report. We’ll look at some more today. The report is a big document, painstakingly put together, and 250 pages long. If you’re interested in glancing through it, the link above will take you to the WEO webpage. The entire report can be downloaded as a pdf, or you can download individual chapters, tables and figures.
Also, posted are:
- A new assignment (due next week). I’ll post answers on Wednesday so you have a chance to evaluate where you went wrong, before the exam. Obviously, some of you will blindly copy the answers, but hopefully, most of you won’t.
- Answers for last week’s assignment.
- Today’s lecture notes (includes what you’re responsible for on the exam, and a note on grading).
- A handout (the last one for the semester) on fiscal stimulus by James Suriwiecki of the New Yorker. An excerpt:
Popular as Keynesian fiscal policy may be, many economists are skeptical that it works. They argue that fine-tuning the economy is a virtually impossible task, and that fiscal-stimulus programs are usually too small, and arrive too late, to make a difference. And since the money to pay for fiscal programs has to be borrowed and paid back in taxes, it’s a wash for the economy as a whole. If the government gives you six hundred dollars but you know you’re eventually going to have to pay six hundred dollars back in taxes, it may not feel like much of a gift. The economist Russell Roberts argues that using fiscal policy to get the economy going is like “taking a bucket of water from the deep end of a pool and dumping it into the shallow end.” [link]
See you in class shortly.