126 Essay Topics – Fall 2016

1. Gregory Clark argues that Europe, up to roughly 1800, through the early modern as well as medieval eras, was subject to Malthusian constraints. Others disagree with the applicability of the Malthusian model for all or part of that period. Grantham, for example, maintains that the key constraint on prosperity during European feudalism was not Malthusian, but the prevalence of market incentives. Contrast the views and evidence supplied by Grantham, as opposed to Clark. Which is more persuasive? Is the evidence sufficient to make either point of view persuasive? George Grantham, “The Manse, The Manor and the Market: New Perspectives on the Medieval Agricultural Revolution” John Hatcher and Mark Bailey. Modeling the Middle Ages. Chs. 2, pp. 21-65; ch. 4, pp. 121-174; ch. 5, pp. 182-184, 200-208. Engineering and Science Reserves.

2. According to Kroszner and Strahan, what drove deregulation of branch banking in the US from the 1970s on? How does their view square with that of Krugman?

What have different economists identified as the main problems facing effective banking regulation? What proposals have they offered to deal with these problems and reform banking regulation? What are the criticisms of the different proposals and the prospects for a regulatory regime that is successful in delivering financial and macroeconomic stability?

Randall S. Kroszner and Philip E. Strahan.

“What Drives Deregulation? Economics and Politics of the Relaxation of Bank Branching Restrictions” Quarterly Journal of Economics, Nov. 1999.

Paul Krugman.

The Return of Depression Economics and the Crisis of 2008. Ch. 8.

Andrew G Haldane and Piergiorgio Alessandri. “Banking on the State”. based on a presentation delivered at the Federal Reserve Bank of Chicago twelfth annual International Banking Conference on “The International Financial Crisis: Have the Rules of Finance Changed?”, Chicago, 25 September 2009.

Andrew G Haldane and Robert M. May. Systematic Risk in Banking Ecosystems.” Nature. Jan. 20, 2011.

Martin Hellwig. “Capital Regulation After the Crisis: Business as Usual?” Preprint of the Max Planck Institute for Research on Collective Goods, 2010/31.

Charles A. E. Goodheart. “The Squam Lake Report: Commentary.” Journal of Economic Literature. 2011, 49:I, pp. 114-119.

Takeo Hoshi. “Financial Regulation: Lessons from the Recent Financial Crises.” Journal of Economic Literature. 2011, 49:I, pp. 120-128.

Rubric for Essays

Out of 100 20 points-Having a Thesis. Do you tell the reader in the first few lines of the paper whether Kroszner and Strahan better explain what drove deregulation of branch banking than Krugman, or what have different economists identified as the main problems facing effective banking regulation? 30 points-Do you clearly understand the authors’ views? -Are you attributing views to Kroszner and Strahan or Krugman and others that they do not actually hold? -Do you understand where the differences lie in their theories about why banking was regulated and then deregulated? -Have you succinctly described their views in your paper? 30 points-Do you critically assess the authors’ evidence and use the evidence from the authors to support your thesis? -Do you make it clear why certain evidence given by one author discredits (in your opinion) the evidence given by another author? -Or, if you think none makes a great case do you explain WHY certain evidence does not show what the authors say it shows? 10 points-Conclusion 10 points-Proper citation/referencing. See CANVAS. Note though, that the example there is when the author is talking about a vague topic. Do not say something like “Grantham says ___ “(Grantham 1992, page 1-21). Write down the specific page so we can verify what you are saying. “Grantham says ___” (Grantham 1992, Pg 1)