An investigation of the financial aspects of the process of economic growth, with an emphasis on monetary theory and policy. Institutional material provides the backdrop for a discussion of the connection between prescriptions for monetary policy and monetary theories. The class covers both orthodox and heterodox approaches to money. In particular, the course examines “modern money theory” as an alternative to the mainstream approach. While the focus of the course is primarily theoretical, it also examines banking and the coordination of monetary operations among the central bank, the Treasury, and private banks and other financial institutions. Prerequisite: Intermediate Macro.

This course centers on the contributions made by the late financial economist Hyman P. Minsky, beginning with his early work on investment and business cycles, his research on employment and poverty, his critique of the Johnson administration’s War on Poverty, and his employer-of-last-resort proposal. Minsky’s development and extension of the financial instability hypothesis, the policy proposals advanced in his book Stabilizing an Unstable Economy, and his reinterpretation of Keynes’s General Theory are explored. The course also examines Minsky’s work at the Levy Institute in the 1990s, which represented a major advance over his earlier research and includes his manuscript for a planned book on “reconstituting the financial system.” Students apply Minsky’s work to a study of the 2007–09 global financial crisis.
Prerequisite: Intermediate Macro.

This course uses the lens of Hyman Minsky’s work to examine the nature of economic instability and financial crises in modern history. Students are introduced to Minsky’s interpretation of John Maynard Keynes’s investment theory of the business cycle and to Minsky’s own financial theory of investment, as well as his work on specific policies dealing with poverty and unemployment. The controversial question of government intervention is addressed, including the theoretical justifications for and against intervention, the optimal level of intervention, and the effect of no intervention at all. The relative effectiveness of monetary and fiscal policies is also discussed.

In this course students acquire the econometric and analytical skills needed to design and apply economic models to the study of income distribution, gender disparities, and macroeconomic issues. First, students master the concepts of linear and nonlinear regression, time series, fixed effects, random effects, dynamic panel data models, and limited dependent variables. Second, they develop the skills needed to apply their econometric knowledge, replicating the results from key studies.

This course covers the key types and sources of data used for economic analysis and provides insights into key technical areas of applied economic analysis at both the macro and micro levels. Core data sources: national income and social accounts, international trade and financial flows, and survey data, including labor force, income and expenditure, wealth, and time-use surveys. Analytical methods employed include time-series econometric analysis, forecasting at the macro level, and distributional analysis and policy simulation at the micro level.

Focuses on the analysis of contemporary economic problems, viewed on a macroeconomic scale. The course begins with an overview of long-term structural patterns in developed economies, including the intrinsic nature of growth, the historical dynamics of unemployment, and the surprising recurrence of structural economic crises over long intervals. Students then follow the systematic development of different approaches to the fundamental issues in economic analysis. The second half of the course centers on developing a stock-flow accounting framework and demonstrating its connection to the “three balances approach” that underlies the Levy Institute’s macro model.

This course examines the role of the state in modern capitalist economies. Students are introduced to alternative theories of state and government intervention. Mainstream approaches are discussed and contrasted with alternative approaches that emphasize social, historical, and institutional factors. Taxation is examined within the standard theory of value and distribution as well as within the classical and Kaleckian approaches, and public expenditures, including the provision of education and health care, are analyzed. Topics in the theory of redistribution and the welfare state form the final portion of the course. Readings include a mix of “classic” works, authoritative surveys, and recent work on specialized topics.

An introduction to gender perspectives in economic analysis and policy development. The course provides a gender-informed review of conventional frameworks, including analytical categories and measurement indicators used. Students are introduced to gender-aware theory and learn to apply it in the construction of formal models and empirical investigations. The course explores how gendered structures of production and distribution interact with economic growth, international trade, labor market segmentation, poverty, and income distribution, and how a range of public policy options can potentially ameliorate or inadvertently reinforce gender-based inequalities. Examples are drawn from a variety of developing and developed countries, including the United States, with a focus on both past and present-day policy debates.

This course explores the various strategies for measuring poverty and inequality in the United States and globally, touching on recent debates about poverty measurement and comparisons across countries as well as alternative measures developed at the Levy Institute. Both mainstream and heterodox theoretical approaches are covered. Students consider characteristics of the distribution of income, consumption, and wealth, and their relative usefulness in terms of assessing the inequality of economic well-being. Topics include the disparate experiences of poverty and inequality by race and gender, both within and across global regions, and the impact of economic structures, policy, and development on poverty and inequality.

An examination of social policy issues concerning women, minorities, and the disabled. The primary focus is on theories and evidence on gender, racial, and health differences in labor market outcomes; discrimination in credit and housing markets; education opportunities and human capital; labor supply; the effect of human capital and discrimination on earnings; and the role of government policies on well-being. Students discuss alternative policies to address challenges associated with discrimination in different markets, including international comparisons of social policy. Topics include the gender wage gap and occupational segregation; racial gaps in income, savings, and wealth; labor force participation of the disabled, and disability policy. Students address the economic theories that explain these differences, look at empirical studies, and analyze data from selected countries.

Gender-based wage differentials and occupational segregation continue to characterize the division of labor among men and women in paid work, yet unpaid work in social reproduction, subsistence production, family businesses, and the community is often ignored. When taken into account, it is usually done in a very limited way, equating unpaid work to the traditional roles women play in raising children and performing maintenance chores. Yet, in addition to the obvious gender inequalities characterizing household production, unpaid work constitutes an integral part of any functioning economy and is intimately linked to paid work. Using the intersections of paid and unpaid work as a starting point, this course addresses three issues: (1) time-use data collection that allows for the measurement of unpaid work, which can be effectively employed for empirical analysis ranging from poverty to the more accurate measurement of GDP and growth; (2) modeling of micro and macro impacts of public investment in activities that reduce unpaid care work through public service provisioning; and (3) social protection and social security options that address the fact that many women devote substantial amounts of time on unpaid work activities

The world is home to some 6.5 billion people, or about twice the number living in 1965. The size and composition of the global population have changed dramatically, with increased immigration, declining fertility and mortality, and an aging demographic. This course focuses on the reasons behind these changes, their consequences for the future health and well-being of the population, and potential policy alternatives to address global population challenges. Topics include the relationship between economic development, environmental change, and population growth; social and economic determinants of fertility levels; public policy challenges associated with an aging population; and social and economic determinants of immigration and immigration policy. Both developing countries and industrialized nations are studied.

An exposition of the analytical foundations of the classical (“surplus”) and neoclassical (“marginalist”) traditions in the theory of value and distribution. Given its dominance in contemporary economics, the latter tradition is emphasized in this course. The historical development of the marginalist theory of value is considered, as are critiques that focus on its internal coherence and methodological difficulties. The remainder of the course examines the measurement of economic well-being and deprivation, including the substantive issues related to the determinants of standard of living. Topics: Lorenz curves, social welfare functions, inequality indices, and poverty indices.

The primary objective of macroeconomic analysis is to explain the phenomena of aggregate movements in output, employment, and the price level. This course examines the intellectual influences that have shaped the development of macroeconomic theory and policy since the beginning of the 20th century. Students acquire the skills needed to (1) identify the main theoretical and methodological differences among competing approaches, (2) discuss the empirical evidence supporting each approach, and (3) explain why particular policy instruments are considered appropriate (or inappropriate) to achieve macroeconomic stability.
Prerequisite: Intermediate Macro.

This course centers on the contributions made by the late financial economist Hyman P. Minsky, beginning with his early work on investment and business cycles, his research on employment and poverty, his critique of the Johnson administration’s War on Poverty, and his employer-of-last-resort proposal. Minsky’s development and extension of the financial instability hypothesis, the policy proposals advanced in his book Stabilizing an Unstable Economy, and his reinterpretation of Keynes’s General Theory are explored. The course also examines Minsky’s work at the Levy Institute in the 1990s, which represented a major advance over his earlier research and includes his manuscript for a planned book on “reconstituting the financial system.” Students apply Minsky’s work to a study of the 2007–09 global financial crisis, and to recommendations for reform.
Prerequisites: Financial Structure and Instability; Advanced Macro

An exploration of advanced topics in monetary theory and policy, including recent debates and current research practices as well as classic issues. Students consider international policy issues by examining global financial institutions, modernization, and regulation. The global financial crisis of 2007–09, and the role played by financial institutions and monetary policy in precipitating (and attenuating) the crisis, is also examined.
Prerequisites: Monetary Theory and Policy; Advanced Macro