write all the 4 answers

 Question A 1.

Mishkin and Rogoff both have ideas about the costs and benefits of financial globalization.  Furthermore, you may be able to make some inferences about what Kling would think of financial globalization.  Given that, consider the following questions: 

·        Why, according to the authors, might an international institution succeed when domestic institutions cannot?

·        What would an international institution do in a crisis?

·        What benefits would an international institution provide to the global financial community?

·        What are the disadvantages of creating a strong international financial institution to help with financial crises?

To get an A on this question, you must try to interject what you THINK Kling would say about these topics on an international level, even though his essay (Not What They Had in Mind) generally focused on the US.

Read Mishkin’s article about global financial instability.

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

Read Rogoff’s article about global financial instability.

http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.13.4.21

http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.13.4.21

Question A5.

Consider Google, Yahoo, Frito Lay, etc.  Using those companies (and the podcasts) as examples, explain how cost structure influences industry structure AND explain how consumer demand influences the behavior of companies.

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?

Read John Taylor’s article about monetary transmission mechanisms.

https://www.aeaweb.org/articles.php?doi=10.1257/jep.9.4.11

Also, to understand traditional monetary policy, listen to this:

http://www.econtalk.org/archives/2008/08/john_taylor_on.html

Read Lucas’ Noble lecture on monetary neutrality.

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

Question B2. 

What, in your opinion, do you think Kling’s main point was in his essay “Not What They Had in Mind?”

What evidence does he present that supports his main point?

Kling’s most basic policy suggestion is that we should have policies that support more equity finance as opposed to more debt finance.  Why does he think that?  What policies can you envision that would support that policy goal.

Read Arnold Kling’s history of the policies that created the great recession

http://mercatus.org/publication/not-what-they-had-mind-history-policies-produced-financial-crisis-2008