Booms and Busts: The Economics of Inequality, Stagnation, and Crises

(3 Credit Hours) · Undergraduate

This course introduces students to the key theories of income distribution within the context of macroeconomics. It allows students to derive basic distributional insights from macroeconomic accounting identities, e.g. Y = C + I. Moreover, students learn how to derive Piketty's Fundamental Law of Capitalism (r > g) from a simple macro model. Further, the various theories of income distribution are taken to data through a survey of empirical evidence. Finally, the course introduces students to the key debates: 1. Fiscal austerity and income distribution, 2. Income inequality and aggregate demand, and 3. Drivers and consequences of distributive cycles, among others.