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Economists Michigan Suggested Reading Syllabus

Michigan. National Income Syllabus. Gardner Ackley, 1958

 

The following syllabus for Gardner Ackley’s 1958 course on Keynesian macroeconomics was found in the Martin Bronfenbrenner Papers at the Economists’ Papers Archive at Duke University. I have added three short biographical items for this midwestern economist who served as chairman of President Johnson’s Council of Economic Advisers from 1964-68. 

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GARDNER ACKLEY
Minute of the College of Literature, Science, and the Arts

On February 12, 1998, University Professor Emeritus Gardner Ackley passed away at the age of 82, and the economics profession lost one of its true stars.

Gardner Ackley.

  • Served as a distinguished member of the Michigan faculty from 1940 until his retirement in 1984,
  • Chaired the department with great distinction from 1954 to 1961,
  • Published the textbook, Macroeconomics Theory (1961), which defined that field for a generation of economics students around the world,
  • Served President Lyndon Johnson as Chairman of his Council of Economic Advisers from 1964 to 1968,
  • Served the nation as American Ambassador to Italy during 1968-69, and,
  • Was rewarded by his profession with election to the Presidency of the American Economic Association in 1982.

These accomplishments and honors distinguish the career of Gardner Ackley as among the most stellar of his generation, and they define a standard worthy to inspire the succeeding generations of professional economists.

No celebration of Gardner Ackley, however, should conclude without mentioning at least the following two of the many significant challenges he shouldered during his distinguished career. His years as Chair of the Michigan Department of Economics included the period of challenge to academic freedom and McCarthyism. Gardner stood solidly in support of students and colleagues in those years in ways that marked him as a man of extraordinary courage and integrity. Later, as Chair of the Council of Economic Advisers, he stood up once again for what he believed, this time challenging the President of the United States to adopt a proper, if unpopular, anti-inflationary policy as the war in Vietnam stretched the economic capacities of an already fully-employed nation.

Those of us who knew Gardner, whether as a colleague, mentor, or teacher, feel privileged to have known him and appreciate the dimension of his loss.

Source:  University of Michigan, Faculty History Project. LSA Minutes, Gardner Ackley.

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From the University of Michigan Alumni Magazine
February 13, 1954

GARDNER ACKLEY, AM. ’37, Ph.D. ’40, who was named Chairman of the Department of Economics effective February 1, has divided his time almost equally since 1940 between the University and the Federal government. He joined the faculty in 1940 as an Instructor, and became a full Professor in 1952. Professor Ackley’s government service has been with the National Resources Planning Board, the wartime OPA, the Office of Strategic Services, the Economic Stabilization Agency, and, during 1951 and 1952, as Economic Advisor and Assistant Director of the Office of Price Stabilization. Professor Ackley earned his A.B. at Western Michigan College; he is a member of the American Economic Association and the Econometric Society. He has served on numerous University committees, including the Board in Control of Intercollegiate Athletics.

Source: Classroom Profile. The Michigan Alumnus (February 13, 1954) p. 214.

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Biography from Guide to Gardner Ackley Papers

(Hugh) Gardner Ackley was born in Indianapolis, Indiana on June 30, 1915. In 1936, Ackley received his baccalaureate degree from Western State Teachers College (now Western Michigan University) in Kalamazoo, Michigan. In 1937, a master’s degree was conferred upon Ackley by the University of Michigan and in 1940 he received a doctoral degree from the same institution.

In 1939 and 1940, Ackley was an instructor at Ohio State University, returning to teach at the University of Michigan in late 1940. Throughout the Second World War he served as a member of the government in Washington. From 1941 to 1942, and again from 1944 to 1946 he worked at the Office of Price Administration. In 1943 and 1944 he was assigned to the Office of Strategic Services. Concluding his wartime service, Mr. Ackley returned to the University of Michigan where he resumed his academic career in the Department of Economics.

Ackley returned to government service in 1951, serving for two years as the assistant director of the Office of Price Stabilization. After completing this assignment he once again returned to Ann Arbor to carry on scholarly pursuits.

Gardner Ackley left Ann Arbor for Washington for the third time in August 1962 when President John Kennedy named him as a member of the Council of Economic Advisors. He served as a member of the council until November 14, 1964, when President Lyndon Johnson named him the new chairman of the CEA. Early in 1968, Mr. Ackley left the council to become ambassador to Italy, a post he held until 1969. After returning from Italy, Ackley again resumed his academic career at the University of Michigan.

From 1969 until 1984 Ackley was the Henry Carter Adams University Professor of Political Economy at the University of Michigan. During this same period, he served on many national commissions and councils devoted to economic issues. He was a member of the Trilateral Commission from 1977 to 1983 and during 1978-1979 he was a member of the Advisory Council on Social Security. He also served as president of the American Economics Association during 1982.

Among his many honors, Ackley received the Distinguished Faculty Achievement Award at the University of Michigan in 1976 and he was also elected a fellow of the American Academy of Arts and Science. Ackley has been professor emeritus since 1984.

Gardner Ackley died February 12, 1998.

Source:  University of Michigan. Bentley Historical Library. Guide to Papers of Gardner Ackley.

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Syllabus 1958

[Handwritten note by Bronfenbrenner: G. Ackley (Michigan)]

Economics 151
NATIONAL INCOME I
Reading List

Second Semester, 1957-58

In the following list selected readings on topics to be covered in the course are arranged under two headings: “Assignments,” which all students should study, and “References,” which usually (but not always) present a more advanced or more specialized treatment, or a conflicting point of view. No effort is made to supply references on topics only lightly touched on in the course. Publisher and date of publication are given only upon first listing. Additional assignments may be made in class.

All students should purchase J. M. Keynes, General Theory of Employment, Interest, and Money, Harcourt-Brace, 1936. (This will be referred to as “Keynes.”) In addition, each student should purchase, at the Cashier’s Office in the Administration Building, a “lab ticket” for this course (price $3.75). This will entitle him to receive a copy of the preliminary edition of G. Ackley, An Introduction to Macroeconomic Theory, which will be distributed in class. (This will be referred to as “Ackley.”)

Modern textbooks which treat the general field covered by this course include the following:

  1. R. and N. Ruggles, National Income and Income Analysis (McGraw-Hill, 2nded., 1956).
  2. T. Schelling, National Income Behavior: An Introduction to Algebraic Analysis (McGraw-Hill, 1951)
  3. A. P. Lerner, Economics of Employment (McGraw-Hill, 1951)
  4. S. Weintraub, Income and Employment Analysis (Pitman, 1951)
  5. R. V. Clemence, Income Analysis (Addison-Wesley, 1951)
  6. J. P. McKenna, Aggregate Economic Analysis (Dryden, 1955)
  7. T. Morgan, Income and Employment (Prentice-Hall, 2nded., 1952)

In this reading list no references are given to these textbooks. The student who wishes to use any of them can, however, easily find the appropriate sections from the table of contents.

Two other books which many students find helpful in understanding Keynes’ General Theory are A. H. Hansen, Guide to Keynes (McGraw-Hill, 1953); and D. Dillard, The Economics of J. M. Keynes (Prentice-Hall, 1948).

There will be one or more written problems which all students will be expected to hand in. Graduate students will be expected to write a paper.

  1. INTRODUCTION (Feb. 6,8)

Assignments:

  1. Ackley, Ch. I.

References:

  1. K. Kurihara, Introduction to Keynesian Dynamics (Columbia University Press, 1956), ch. 1

*  *  *  *  *  *

  1. MEANING AND MEASUREMENT OF NATIONAL INCOME AND PRODUCT  (Feb. 11 – 18)

Assignments:

  1. Ackley, Chs. II and III.
  2. National Income Supplement to the Survey of Current Business, 1954 edition
    (U.S. Dept. of Commerce, 1954), Parts I and II. Every student is urged to purchase this useful volume.)

References:

  1. National Income Supplement, Part III.
  2. A System of National Accounts and Supporting Tables, Studies in Methods, No. 2 (Series F). (United Nations, 1953)
  3. A Simplified System of National Accounts (Organization for European Economic Cooperation, 1952)
  4. H. C. Edey and A.T. Peacock, National Income and Social Accounting, (Hutchinson’s University Library, 1954)
  5. R. and N. Ruggles, National Income Accounts and Income Analysis. (McGraw-Hill, 1956) pp. 3-210.
  6. C. S. Shoup, Principles of National Income Analysis. (Houghton, Mifflin, 1947
  7. S. Kuznets, National Income: A Summary of Findings. (National Bureau of Economic Research, 1946) Especially pp. 111-139.
  8. C. S. Shoup, “Development and Use of National Income Data,” in Survey of Contemporary Economics. (H.S. Ellis, ed., Blakiston, 1949), pp. 288-313.
  9. S. Kuznets, “National Income and Economic Welfare,” in Economic Change. (Norton, 1953), pp. 145-215.
  10. J. R. Hicks, “Valuation of Social Income,” Economica, Vol. VII (new series), May 1940
  11. K. E. Boulding, “Income or Welfare,” Review of Economic Studies, Vol. XVII, 1949-50.
  12. J. P. Powelson, Economic Accounting. (McGraw-Hill, 1955), Chs. 14-20.
  13. Keynes, Ch. 6.
  14. The National Economic Accounts of the United States: Hearings before the Subcommittee on Economic Statistics of the Joint Economic Committee (U.S. Govt. Printing Office, 1957), esp. pp. 101-299.

*  *  *  *  *  *

  1. OUTPUT AND EMPLOYMENT (Feb. 20 – 25)

Assignments:

  1. National Income Supplement, Part IV.
  2. G. Bancroft, “Current Unemployment Statistics of the Census Bureau and Some Alternatives,” in The Measurement and Behavior of Unemployment (Princeton University Press, 1957), pp. 63-119.

References:

  1. Keynes, Ch. 4
  2. M. Gilbert and I.B. Kravis, An International Comparison of National Products and the Purchasing Power of Currencies (Organization for European Economic Cooperation, 1954). Also see references under II, especially items 7 and 9.
  3. Other papers in Measurement and Behavior of Unemployment.

*  *  *  *  *  *

  1. THE “CLASSICAL” ECONOMICS (Feb. 27 – March 8)

Assignments:

  1. Ackley, Chs. V, VI.
  2. Keynes, Ch. 2
  3. A. H. Hansen, Monetary Theory and Fiscal Policy (McGraw-Hill, 1949) Ch. 3
  4. Ackley, Chs. VII, VIII.

References:

  1. F.M. Taylor, Principles of Economics(Ronald, 9thed., 1921), pp. 196-205.
  2. K. Wicksell, Lectures on Political Economy(English translation by L. Robbins, Routledge and Kegan Paul, 1935), Vol. II, especially pp. 159-208.

*  *  *  *  *  *

  1. OBSTACLES TO FULL EMPLOYMENT (March 11 – 15)

Assignments:

  1. Ackley, Ch. IX
  2. Keynes, Chs. 13, 15.

References:

  1. A. H. Hansen, Monetary Theory and Fiscal Policy, Ch. 4.
  2. A. P. Lerner, “Interest Theory,” in The New Economics (S.E. Harris, ed., Knopf, 1947), pp. 655-661.
  3. L. R. Klein, The Keynesian Revolution (Macmillan, 1949), pp. 69 (top), – 73 (Middle), 117-123.
  4. Readings in the Theory of Income Distribution. (Selected by a Committee of the American Economic Association, Blakiston, 1946), articles by Keynes, Robertson, Hicks, Somers, and Lutz.
  5. A. G. Hart, Money, Debt, and Economic Activity. (Prentice-Hall, 1948), Ch. 8.
  6. Keynes, General Theory, Ch. 17.
  7. D. H. Robertson, “Some Notes on the Theory of Interest,” in Money, Trade, and Economic Growth (Macmillan, 1931), pp. 193-209.
  8. S. C. Tsiang, “Liquidity Preference and Loanable Funds Theories, Multiplier and Velocity Analyses: A Synthesis,” American Economic Review, XLVI (Sept. 1956), pp. 539-555.
  9. G. Ackley, “Liquidity Preference and Loanable Funds Theories of Interest: Comment,” ibid., XLVII (Sept. 1957), pp. 662-73.
  10. K. Kurihara, Introduction to Keynesian Dynamics, ch. 4.

*  *  *  *  *  *

  1. HOUR EXAMINATION (March 18)

*  *  *  *  *  *

  1. CONSUMER EXPENDITURES AND THE SIMPLE KEYNESIAN MODEL (March 20 – April 2)

Assignments:

  1. Ackley, Ch. X.
  2. Keynes, Chs. 1, 3, 5, 8, 9.
  3. G. Katona, “The Variability of Consumer Behavior and the Survey Method,” in Contributions of Survey Methods to Economics (L.R. Klein, ed., Columbia Univ. Press, 1945) pp. 49-67, 78-88.

References:

  1. R. Ferber, A Study of Aggregate Consumption Functions. (Technical Paper 8, National Bureau of Economic Research, 1953)
  2. Ruth Mack, “Economics of Consumption,” in A Survey of Contemporary Economics, Vol. II, with comment by J.S. Davis and J. Marschak (ed. B. Haley, Irwin, 1952), Ch. 2.
  3. G. Katona, Psychological Analysis of Economic Behavior. (McGraw-Hill, 1951), pp. 63-192.
  4. G. Katona and E. Mueller, Consumer Attitudes and Demand, 1950-52. (Survey Research Center, 1956).
  5. G. Katona and E. Mueller, Consumer Expectations, 1953-1956. (Survey Research Center, 1956).
  6. Savings in the Modern Economy, ed. W.W. Heller, F.M. Boddy, and C.L. Nelson. (Univ. of Minnesota Press, 1953), Chs. 7, 8, 13.
  7. E. F. Denison, “Saving in the National Economy,”Survey of Current Business, January 1955, pp. 8-24.
  8. I. Friend (with V. Natrella), Individual Saving: Volume and Composition (John Wiley, 1954). Especially pp. 118-154.
  9. R. Klein, ed., Contributions of Survey Methods to Economics.
  10. J. S. Duesenberry, Income, Saving, and the Theory of Consumer Behavior, (Harvard University Press, 1949)
  11. J. S. Duesenberry, “Income-Consumption Relations and their Implications,” in Income, Employment, and Public Policy. (Norton, 1948), pp. 54-81.
  12. J. Tobin, “Relative Income, Absolute Income, and Saving,” in Money, Trade, and Economic Growth. (Macmillan, 1951), pp. 135-156.
  13. J. Tobin, “Asset Holdings and Spending Decisions,” American Economic Review, XLII (May 1952) pp. 109-123.
  14. J. R. Hicks, A Contribution to the Theory of the Trade Cycle (Oxford University Press, 1950), Chs. 2, 3.
  15. R. F. Harrod, Towards a Dynamic Economics, (Macmillan, 1949), pp. 35-62.
  16. A. C. Pigou, Employment and Equilibrium (2ndedition, Macmillan, 1949), pp. 28-46.
  17. M. Friedman, A Theory of the Consumption Function (Princeton University Press, 1957)
  18. K. Kurihara, Introduction to Keynesian Dynamics, ch. 2.
  19. F. Modigliani and R. Brumberg, “Utility Analysis and the Consumption Function: An Interpretation of Cross-Section Data” in K. Kurihara (ed.), Post-Keynesian Economics. (Rutgers University Press, 1954), pp. 388-436.

*  *  *  *  *  *

  1. APPLICATIONS AND EXTENSIONS OF THE SIMPLE KEYNESIAN MODEL (Apr. 3, 5, 15, 17)

Assignments:

  1. Ackley, Ch. XII.
  2. Keynes, Chs. 7, 10.
  3. P. A. Samuelson, “Simple Mathematics of Income Determination,” in Income, Employment, and Public Policy, pp. 133-155.

References:

  1. G. Haberler, “Mr. Keynes’ Theory of the Multiplier,” in Readings in Business Cycle Theory, selected by a committee of the American Economic Association (Blakiston, 1944), pp. 193-202.
  2. F. Machlup, “Period Analysis and Multiplier Theory,” in Readings in Business Cycle Theory, pp. 203-234.
  3. R. M. Goodwin, “The Multiplier,” in The New Economics. (S.E. Harris, ed., Knopf, 1947), pp. 482-499.
  4. G. Ackley, “The Multiplier Time Period,” American Economic Review, June 1951.
  5. R. Turvey, “Some Notes on Multiplier Theory,” American Econ. Review, June 1953
  6. L. A. Metzler, “Three Lags in the Circuit Flow of Income,” in Income, Employment and Public Policy, pp. 11-32.
  7. A. P. Lerner, “Saving Equals Investment,” in The New Economics, pp. 619-626.
  8. L. R. Klein, The Keynesian Revolution, pp. 75 (bottom) – 80 (top), 110-117.
  9. F. A. Lutz, “The Outcome of the Saving-Investment Discussion,” in Readings in Business Cycle Theory, pp. 158-168.
  10. A. P. Lerner, “Saving and Investment,” in Readings in Business Cycle Theory, pp. 158-168. [sic]
  11. A. H. Hansen, Monetary Theory and Fiscal Policy (McGraw-Hill, 1949), pp. 219-225.
  12. A. H. Hansen, Business Cycles and National Income (Norton, 1951), pp. 156-163, 606-616.
  13. K. Kurihara, Introduction to Keynesian System, chs. 5, 6, 7.

*  *  *  *  *  *

  1. THE COMPLETE KEYNESIAN SYSTEM (April 19 – May 1)

Assignments:

  1. Ackley, Chs. XIII, XIV
  2. Keynes, Chs. 14 (Appendix optional), 18, 19 (Appendix optional), 20 (Sec. I optional) 21 (Sec IV optional), 24.
  3. A. P. Lerner, The Economics of Control. (Macmillan, 1944), Chs. 22, 23.

References:

  1. A. H. Hansen, Monetary Theory and Fiscal Policy, Ch. 5, 7, 8, 9.
  2. J. R. Hicks, “Mr. Keynes and the ‘Classics’,” in Readings in the Theory of Income Distribution, pp. 461-476.
  3. O. Lange, “The Rate of Interest and the Optimum Propensity to Consume,” in Readings in Business Cycle Theory, pp. 169-178 (only).
  4. D. Patinkin, “Price Flexibility and Full Employment,” in Readings in Monetary Theory. (eds. F.A. Lutz and L.W. Mintz, Blakiston, 1951), pp. 252-58.
  5. F. Modigliani, “Liquidity Preference and the Theory of Interest and Money,” Readings in Monetary Theory, pp. 186-239.
  6. A. P. Lerner, “Relation of Wage Policies and Price Policies,” in Readings in the Theory of Income Distribution, pp. 314-329.
  7. L. G. Reynolds, “Relations between Wage Rates, Costs, and Prices,” in Readings in the Theory of Income Distribution, pp. 294-313.
  8. J. Tobin, “Money Wage Rates and Employment,” in The New Economics, pp. 572-587.
  9. J. Lintner, “The Theory of Money and Prices,” in The New Economics, pp. 503-537.
  10. L. R. Klein, The Keynesian Revolution, pp. 72-75, 80-90, 106-110, 199-206.
  11. L. R. Klein, “Theories of Effective Demand and Employment,” Journal of Political Economy, April, 1947.
  12. E. S. Mason, “Prices, Costs, and Profits,” in Money, Trade, and Economic Growth, pp. 177-190.
  13. J. R. Schlesinger, “After Twenty Years: The General Theory,” Quarterly Journal of Economics (November 1956), pp. 581-602.
  14. “Keynesian Economics after Twenty Years,” (Papers and comments by W. Fellner, D. Dillard, D. Wright, W.A. Salent, and T. Scitovsky), American Economic Review, XLVII (May 1957), pp. 67-95.
  15. A.C. Pigou, Keynes’ General Theory(Macmillan, 1950).
  16.  K. Kurihara, Introduction to Keynesian Dynamics, ch. 10.

*  *  *  *  *  *

  1. HOUR EXAMINATION (May 3)

*  *  *  *  *  *

  1. INFLATION (May 6, 8)

Assignments:

  1. A. H. Hansen, Monetary Theory and Fiscal Policy, ch. 11
  2. A. P. Lerner, Economics of Employment, chs. 13, 14 (15 and 16 optional).

References:

  1. K. Kurihara, Introduction to Keynesian Dynamics, ch. 8.
  2. A. Smithies, “The Behavior of Money National Income under Inflationary Conditions,” Quarterly Journal of Economics, LVII (1942)
  3. T. Koopmans, “The Dynamics of Inflation,” Review of Economic Statistics, XXIV (1942)
  4. J. Duesenberry, “The Mechanics of Inflation,” and F. Holzman, “Income Determination in Open Inflation,” Review of Economics and Statistics, XXXII (1950).
  5. B. Hansen, A Study in the Theory of Inflation (Allen and Unwin, 1951), especially ch. VII.

*  *  *  *  *  *

  1. THE THEORY OF INVESTMENT (May 10 – 17)

Assignments:

  1. Ackley, Ch. XV.
  2. Keynes, Chs. 11, 12, 16, 22.
  3. J. R. Meyer and E. Kuh, The Investment Decision (Harvard Univ. Press, 1957), Ch. 1.

References:

  1. A. P. Lerner, Economics of Control, Ch. 25
  2. L. R. Klein, Keynesian Revolution, pp. 62-69.
  3. A. Smithies, “Economic Fluctuations and Growth,”Econometrica, 25 (January 1957), pp. 1-52.
  4. K. Kurihara, Introduction to Keynesian Dynamics, ch. 3.

*  *  *  *  *  *

  1. ECONOMIC POLICY AND THE PRESENT SITUATION (May 20 – 27)

Assignments:

  1. Lerner, Economics of Control, Ch. 24.
  2. M. Friedman, “A Monetary and Fiscal Framework for Economic Stability,” in Readings in Monetary Theory, pp. 369-393.
  3. To be announced.

*  *  *  *  *  *

    1. MISCELLANEOUS FURTHER REFERENCES:

  1. J. Robinson, Essays in the Theory of Employment (Macmillan, 1937).
  2. R. F. Harrod, The Life of John Maynard Keynes. (Harcourt-Brace, 1951).
  3. J. A. Schumpeter, “John Maynard Keynes, 1883-1946,” American Economic Review, Sept. 1946 (reprinted in The New Economics, pp. 73-101).
  4. The New Economics, Chs. 1-8, 11-19, 31-35, 39, 41, 42.
  5. A. F. Burns, Economic Research and the Keynesian Thinking of our Times (26thAnnual Report of the National Bureau of Economic Research, Inc., June 1946).

 

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archive. Martin Bronfenbrenner Papers, Box 25, Folder “Macro-Econ, n.d.”.

Image Source:  University of Michigan, Faculty History Project, Gardner Ackley page.