Category: Macro Economic Theory

Length: 5-6 typed double-spaced pages (approximately 1250-1500 words)
Due date: May 14
Your paper can be on any topic of your choosing relevant to macroeconomics–that is, the
economics of whole-economy outcomes (like economic growth, unemployment, inflation, or
income distribution at the level of an entire national economy). No matter what you choose to
write on, it is important to not only summarize what others have said about the issue, but also
to give your own perspectives and conclusions (based on reasoned argument and supporting
evidence).
Examples of different possible approaches to the paper:
Economic theory: Focus on an important idea in macroeconomics. (During the course, we have
discussed ideas associated with major figures in the history of economic thought including JeanBaptiste Say, Karl Marx, John Maynard Keynes, Milton Friedman, Robert Samuelson, and Robert
Solow. Any of them, and many others, would be worthy subjects.) Describe the theory you are
interested in, its context in economic theory (what previous ideas did it build from or react
against), its context in economic history (what issues of the time was it addressing), and its later
impacts (how did it affect economic institutions, policymaking, etc.).
Economic history: Focus on an important macroeconomic event. (During the course, we have
already discussed events such as the Great Depression, the “stagflation” crisis of the 1970s, and
the global economic crisis starting in 2007. These kinds of events–relatively short in duration
but highly impactful–would certainly be appropriate subjects. Alternatively, a paper could focus
on “events” that play out over the course of decades. Examples include the rising income
inequality in the United States since the 1980s or the decades of rapid economic growth in
China.) Describe the event, economic theories that help explain why these events happened in
the way they did, and responses (theory, policy, etc.) to these events.
Economic policy: Focus on some aspect of macroeconomic policy or institutions. (During the
course, we have already discussed fiscal policy (government spending and taxation, how
governments use these to affect output, employment, and inflation); monetary policy (money
supply and interest rate policy; how central banks carry out monetary policy; historical changes
in monetary policy priorities); social “safety net” policies and labor regulation (impacts on
employment and on NAIRU, impacts on bargaining relationship between workers and
employers); government regulation of industrial competition (impacts on NAIRU, distribution of
income); economic planning and markets (impacts on economic growth and development.)
Describe the policy or institutional issue you are interested in, debates among economists
about the issue, etc.
This is not a major research paper, so you do not have to study a dozen books to write it.
However, this paper should not be written mainly on the basis of what we have studied in the
Blanchard textbook. Your main source material for the paper should be one or more nonrequired readings–academic books or articles, government reports or data, “think tank”
reports, economic journalism, etc. There are many recommended readings in the weekly
folders on Blackboard that can be suitable sources for the paper. If you are interested in a
particular topic but unsure of appropriate sources, feel free to contact the professor for
suggestions.