Readings Keyed to the Macroeconomic Speeds

Thinking about distinct macroeconomic speeds is an approximation method that is alluded to even in undergraduate macro when we talk about the “short run” and the “long run.” (Note that what is there called the “long run” is here called the “medium run” because “long run” is reserved for the long-run growth steady state in which capital has adjusted.)

Chris House and I are working on a paper with a formal development of this as an approximation method. Also in that spirit of dynamic Taylor approximations, you might be interested in this paper:

• “The Effect of Uncertainty on Optimal Control Models in the Neighbourhood of a Steady State,” Miles Kimball

One general economic issue I emphasize is imperfect information processing. This paper and this tweetstorm turned into a blog post are relevant to that:

• “Cognitive Economics,” Miles Kimball

• Slides for “Cognitive Economics”

• A Tweetstorm on Imperfect Information Processing

I also emphasize that partial equilibrium analysis is an important part of macro as well as general equilibrium analysis:

• In Praise of Partial Equilibrium

Many things below are available on my ancient University of Michigan websites:

https://websites.umich.edu/~mkimball/

Ultra Short Run

• “Investment Planning Costs and the Effects of Fiscal and Monetary Policy,” by Susanto Basu and Miles Kimball

• Slides for “Investment Planning Costs and the Effects of Fiscal and Monetary Policy”

Fiscal Policy:

• “Getting the Biggest Bang for the Buck in Fiscal Policy,” Miles Kimball

• “Costly Capital Reallocation and the Effects of Government Spending,” Valerie Ramey and Matthew Shapiro

• “Identifying Government Spending Shocks: It’s All in the the Timing,” Valerie Ramey

Short Run

• Sticky Prices vs. Sticky Wages: A Debate Between Miles Kimball and Matthew Rognlie

• The Medium-Run Natural Interest Rate and the Short-Run Natural Interest Rate

• On the Great Recession

• Optimal Monetary Policy: Could the Next Big Idea Come from the Blogosphere?

• “Next Generation Monetary Policy,” Miles Kimball

• Video of Miles’s presentation on “Next Generation Monetary Policy”

• A chapter of Business Cycle Analytics (Miles’s textbook draft)

• Graphs for Business Cycle Analytics

• “The Quantitative Analytics of the Basic Neomonetarist Model,” Miles Kimball

• “Sticky-Price Models and Durable Goods,” Robert Barsky, Chris House and Miles Kimball

• “Are Technology Improvements Contractionary?”

Negative Interest Rate Policy:

Firm Entry and Exit

• There Is No Such Thing as Decreasing Returns to Scale

• Returns to Scale and Imperfect Competition in Market Equilibrium

Medium Run

• “Q-Theory and Real Business Cycle Analytics,” Miles Kimball

• Business Cycle Analytics (Miles’s textbook draft)

• Graphs for Business Cycle Analytics

• “Long-Run Labor Supply and the Elasticity of Intertemporal Substitution for Consumption,” Susanto Basu and Miles Kimball

• “Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?” Miles Kimball and Matthew Shapiro

• In Praise of Partial Equilibrium