June 09, 2006
The Simple IS-MP Model
We capped the week with an introduction of the Simple IS-MP Model.
Posted by bparke at 12:33 AM | Comments (0)
Monetary Economics
The transactions demand for money and fractional reserve banking (with open market operations) anchor the demand and supply of money.
Posted by bparke at 12:04 AM | Comments (0)
June 07, 2006
Risk - III
We extended our discussion of the mean-variance analysis diagram.
We then discussed hedging and speculating using options.
Posted by bparke at 12:01 AM | Comments (0)
June 06, 2006
Risk - II
We reviewed the concepts of expected value, variance, and standard deviation.
We then went through page 3 in the handout, showing that the utility-based valuation of risk and the statistical view are similar.
We concluded by introducing the mean-variance analysis diagram.
Posted by bparke at 11:53 PM | Comments (0)
June 05, 2006
Risk - I
We began to consider how to analyze asset markets when the outcomes are uncertain.
Posted by bparke at 09:13 PM | Comments (0)
Midterm Answers
Posted by bparke at 09:07 PM | Comments (0)