The test has two sets of questions, set A and set B

The test has two sets of questions, set A and set B. Answer two questions from set A and two from set B. (For a total of four questions.)

Question A2.

Munger discussed the nature of the firm, while Kling discussed the nature of progress. First, carefully discuss Munger’s view on why firms exist. Then discuss Kling’s view on progress.

Then discuss how these two fit together. How, in other words, have firms been able to keep up with progress? (In other words, how has managing a firm (especially it personnel) changed in the last 100 years.)

http://www.econtalk.org/archives/2009/12/kling_on_prospe.html

http://www.econtalk.org/archives/2008/01/munger_on_the_n.html

Question A3.

Tyler Cowen and Joel Mokyr take (at least in some ways) different views of the future of the economy.

What is Cowen’s hypothesis in the Great Stagnation? What evidence does he cite that supports his claim?

What is Mokyr’s hypothesis about the medium term future of the US economy? What evidence does he cite that supports his claim?

What are the main similarities and differences in Cowen and Mokyr?

http://www.econtalk.org/archives/2013/11/joel_mokyr_on_g.html

http://www.econtalk.org/archives/2011/02/cowen_on_the_gr.html

Question B1.

Both Lucas and Taylor believe that monetary stimulus can influence the real economy in the short run. However, they explain the way that money achieves this in very different ways. What is similar and different about Lucas and Taylor’s transmission mechanism?

Lucas’ Noble lecture on monetary neutrality.

http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1995/lucas-lecture.pdf

John Taylor’s article about monetary transmission mechanisms.

http://web.econ.unito.it/bagliano/ecmon_readings/taylor_jep95.pdf

Question B3.

Mishkin gives a good explanation of what banks do. So, what do banks do? (Bank=financial system.) What happens when banks can’t do what they do? In your answer, be sure to discuss asymmetric information.

Mishkin’s article about global financial instability

http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.13.4.3