It is just an exciting time to be taking macroeconomics...

I) Be sure to follow the rise in interest rates in UK, ECB, and US.  We
will be discussing the pros & cons of each region's rise.  Try to decide if
the ECB or the FT editorials (today pp. 12 & 13) are correct on the need
for the ECB rate increase.

II) You might also glance at articles on falling real estate prices in
Japan (p. 4), and the article on Daewoo's bankruptcy (p. 12).

III) Yesterday's FT had a long editorial on markets for the inputs into
global warming (Thurs. 11/4, p. 14).  What are the pros and cons of markets
for controlling externalities of this global sort?

IV) Hint: A typical set of exam questions might be...
Consider one of the following nations that have had special sections in the
FT this term: Ireland, Brazil or Ghana.
1. What is are 1 or 2 of the most serious threats to short-run growth in
GDP for this nation?
2. What short-run fiscal or monetary policies are appropriate?
3. What is are 1 or 2 of the most serious threats to short-run growth in
GDP for this nation?
4. What longer-term policies are appropriate?

These are just the sections of this week, and I do not promise to give a
large selection of nations (although I will give > 1 unless I choose Japan,
Russia, or the EC).

David I. Levine                 Associate professor
Haas School of Business    ph: 510/642-1697
University of California    fax: 510/643-1420
Berkeley CA  94720-1900                            email:
levine@haas.berkeley.edu
http://web.haas.berkeley.edu/www/levine/