Tuesday’s (1/29) Class

Of the six key macroeconomic variables, we finished up looking at all of them in some degree of detail. We talked about: The stock market: We covered the major indices (DJIA and S&P 500), some of the differences between the…

Handout: Forecasting

I’ve posted a handout based on something we were discussing in the last class – forecasting, monkeys throwing darts at the stock pages, and the perils associated with predicting the future. Here’s an excerpt: Many consumers of economic forecasts have,…

What Causes Inflation?

During the last class, one of you asked me what causes inflation. This is an excellent question and, like everything else in (macro)economics there are several theories to explain the process. The classical theory: Assume that the Fed prints more…