Good Set Of Paul Krugman Lectures On The Great Recession

You can find links to the slides for a class he taught over at his NY Times blog.

One important chart I found interesting:



It shows the expansion of the Federal Reserve’s balance sheet since the start of the GFC. An increase in a central bank balance sheet is the same thing as an increase in the money supply.

Some people would look at this chart and say “hyperinflation is coming!” but if you look at core inflation in the US there’s not much support for that conclusion.

If you want to save time and only read one of the lectures, “The Spread of the Crisis” is a good look at differences in how the crisis developed in the US and Europe.

The “Euro Crisis” lecture has some good charts showing differences in unit labour costs across different EU countries. One of the key advantages Germany has over France or Italy is lower unit labour costs (wages) and more flexible labour markets.