Fall 2016 Christina Romer University of California, Berkeley David Romer

ECONOMICS 210C / ECONOMICS 236A MONETARY HISTORY

SUPPLEMENTAL READINGS

OCTOBER 5 – THE EFFECTS OF CREDIT CONTRACTION AND FINANCIAL CRISES: BALANCE SHEET AND CASH FLOW EFFECTS

Bernanke, Ben S., and Mark Gertler. 1989. “Agency Costs, Net Worth, and Business Fluctuations.” American Economic Review 79 (March): 14–31.

Kiyotaki, Nobuhiro, and John Moore. 1997. “Credit Cycles.” Journal of Political Economy 105 (April): 211–248.

Fisher, Irving. 1933. “The Debt-Deflation Theory of Great Depressions.” Econometrica 1 (October): 337–357.

Mark Gertler and Simon Gilchrist. 1994. “Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms.” Quarterly Journal of Economics 109 (May): 309–340.

Ben S. Bernanke, Mark Gertler, and Simon Gilchrist. 1999. “The Financial Accelerator in a Quantitative Business Cycle Framework.” In John B. Taylor and Michael Woodford, eds., Handbook of Macroeconomics, Volume 1 (Amsterdam: Elsevier): 1341–1393.

Lamont, Owen. 1997. “Cash Flow and Investment: Evidence from Internal Capital Markets.” Journal of Finance 52 (March): 83–109.

Rauh, Joshua D. 2006. “Investment and Financing Constraints: Evidence from the Funding of Corporate Pension Plans.” Journal of Finance 61 (February): 33–71.

Olney, Martha L. 1999. “Avoiding Default: The Role of Credit in the Consumption Collapse of 1930.” Quarterly Journal of Economics 104 (February): 319–335.

Diamond, Douglas W. “Financial Intermediation and Delegated Monitoring.” Review of Economic Studies 51 (July): 393–414.

Richard C. Koo. 2009. The Holy Grail of Macroeconomics: Lessons from Japan’s Great Recession (Singapore: Wiley).

Fazzari, Steven M., R. Glenn Hubbard, and Bruce C. Petersen. 1988. “Financing Constraints and Corporate Investment.” Brookings Papers on Economic Activity, no. 1, 141–195.

Saiz, Albert. 2010. ‘‘The Geographic Determinants of Housing Supply.’’ Quarterly Journal of Economics 125 (August): 1253–1296.

Sinai, Todd, and Nicholas S. Souleles. 2005. ‘‘Owner-Occupied Housing as a Hedge against Rent Risk.’’ Quarterly Journal of Economics 120 (May): 763–789.

Case, Karl, John Quigley, and Robert Shiller. 2005. ‘‘Comparing Wealth Effects: The Stock Market versus the Housing Market.’’ Advances in Macroeconomics 5, Article 1.

Eggertsson, Gauti, and Paul Krugman. 2012. ‘‘Debt, Deleveraging, and the Liquidity Trap.’’ Quarterly Journal of Economics 127 (August): 1469–1513.

Mian, Atif, and Amir Sufi. 2009. ‘‘The Consequences of Mortgage Credit Expansion: Evidence from the U.S. Mortgage Default Crisis.’’ Quarterly Journal of Economics 124 (November): 1449–1496.

Mian, Atif, and Amir Sufi. 2014. “What Explains the 2007-2009 Drop in Employment?” Econometrica 82 (November): 2197–2223.

Di Maggio, Marco, Amir Kermani, and Rodney Ramcharan. 2014. “Monetary Policy Pass-Through: Household Consumption and Voluntary Deleveraging.” Unpublished paper, Columbia University (November).

Auclert, Adrien. 2016. “Monetary Policy and the Redistribution Channel.” Unpublished paper, Stanford University (January).

Cloyne, James, and Patrick Hürtgen. 2016. “The Macroeconomic Effects of Monetary Policy: A New Measure for the United Kingdom.” American Economic Journal: Macroeconomics 8 (October): 75–102.

Cloyne, James, and Paolo Surico. 2013. “.Household Debt and the Dynamic Effects of Income Tax Changes.” Unpublished paper, London Business School (September). Review of Economic Studies, forthcoming.

Kaplan, Greg, and Giovanni L. Violante. 2014. “A Model of the Consumption Response to Fiscal Stimulus Payments.” Econometrica 82 (July): 1199–1239.

Kaplan, Greg, Giovanni L. Violante, and Justin Weidner. 2014. “The Wealthy Hand-to- Mouth.” Brookings Papers on Economic Activity (Spring): 77–138.