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Harvard. Graduate Money and Banking. Williams and Hansen, 1941-42

 

This post adds to the growing stock of course materials for the money and banking field taught in the Harvard economics department.

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Course materials for graduate money and banking taught by John Williams and Alvin Hansen for other years posted at Economics in the Rear-view Mirror.

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Course Enrollment

Economics 141. Professors Williams and Hansen.—Principles of Money and Banking.

Total 37: 24 Graduates, 7 School of Public Administration, 2 Radcliffe, 4 Others.

Source: Harvard University. Report of the President of Harvard College, 1941-42, p. 64.

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ECONOMICS 141
Principles of Money and Banking
1941-1942

  1. Pre-requisite reading. (For those who have not had advanced undergraduate course in Money and Banking.)
    1. Board of Governors, Federal Reserve System: Banking Studies — 1941
    2. Escher, Franklin: Modern Foreign Exchange — Macmillan, 1935
  1. Minimum required Reading (It is recommended to begin with Robertson’s book on Money, and then the chapters indicated in Wicksell’s Interest and Prices and Hawtrey’s A Century of Bank Rate. This may be followed by the chapters required in Keynes’ A Treatise on Money.)
  1. Books:
    1. Angell, James W.: Investment and Business Cycles — McGraw-Hill, 1941
    2. Haberler, Gottfried:  Prosperity and Depression — League of Nations, 1939), Chapter 8.
    3. Hansen, Alvin H.: Fiscal Policy and Business Cycles — Norton, 1941
    4. Hansen, Alvin H.: Full Recovery or Stagnation? — Norton, 1938
    5. Hansen, Alvin H.: Business Cycle Theory — Ginn 1927. Chapter IV.
    6. Hawtrey, R.G.: A Century of Bank Rate — Longmans, 1938
    7. Hayek, F. A.: Prices and Production — Routledge, 1935 (rev. ed.)
    8. Keynes, J. M.: Treatise on Money — Harcourt, Brace, 1930. Chapters 9, 10, 11, 12, 13, 30.
    9. Keynes, J. M.: General Theory of Employment, Interest and Money — Harcourt, Brace, 1936.
    10. Lindahl, Erik: Studies in the Theory of Money and Capital — Allen and Unwin, 1939. Part II. Chapters III, IV, V, VI.
    11. Myrdal, G.: Monetary Equilibrium — Hodge, 1939. Chapters I, II, III
    12. Robertson, D. H.: Money — Harcourt, Brace, 1929. (2nd ed.)
    13. Robertson, D. H.: Essays in Monetary Theory — King, 1940
    14. Schumpeter, J. A.: Business Cycles — McGraw-Hill, 1939. Chapters 14, 15
    15. Wicksell, K.: Interest and Prices — Macmillan, 1936. Introduction by Bertil Ohlin, Author’s Preface, and Chapters 5, 7, 8, 11
  1. Articles:

See articles marked * in general reference list below.

  1. General reference reading

Angell, J.W.: Behavior of Money — McGraw-Hill, 1935

Armstrong, W.E.: Saving and Investment — Routledge, 1936

Beach, W.E.: British International Gold Movements and Banking Policy — Harvard U. Press, 1935

Board of Governors, Federal Reserve System: Twenty-Fifth Annual Report

Bresciani-Turroni, C.: The Economics of Inflation — Allen & Unwin, 1937

Brookings Institution: The Recovery Problem in the United States — 1936

Burgess, W.R.: The Reserve Banks and the Money Market — Harpers, 1936

Cassel, G.: The Downfall of the Gold Standard — Clarendon Press, 1936

Cassel, G.: On Quantitative Thinking in Economics — Clarendon Press, 1935.

Cassel, G.: Money and Foreign Exchange after 1914 — Macmillan, 1923.

Chandler, L.V.: An Introduction to Monetary Theory — Harper, 1940

Clark, Colin: National Income and Outlay — Macmillan, 1938

Clark, J.M.: Economics of Planning Public Works — Gov’t .Printing Office, 1935

Clark, J.M.: Strategic Factors in the Business Cycle — National Bureau of Economic Research, 1934

Cole, G.D.H.: What Everybody Wants to Know about Money — Knopf, 1933

Committee on Finance and Industry: Macmillan Report — H.M.S.O., 1931

Copland, Douglas: Australia in the World Crisis, 1929-1933 — Macmillan, 1934

Coulborn, W, A. L.: An Introduction to Money — Longmans, 1938

Crowther, G.: An Outline of Money — Nelson, 1941

Currie, L.: Supply and Control of Money in the United States — Harvard U. Press, 1934

Durbin, E.F.M.: Purchasing Power and Trade Depressions — Cape, 1933

Durbin, E.F.M.: The Problem of Credit Policy — Van Nostrand, 1935

Economic Essays in Honour of Gustav Cassel — Allen & Unwin, 1933

Economic Reconstruction — Report of Columbia Commission, Columbia U. Press, 1934

Einzig, Paul: World Finance, 1939-40 — Kegan, Paul, 1940

Ellis, H.S.: German Monetary Theory — Harvard U. Press, 1934

Ellsworth, P.T.: International Economics — Macmillan, 1938

Fisher, Irving: Purchasing Power of Money — Macmillan, 1911

Fisher, Irving: Booms and Depressions — Adelphi, 1932

Fisher, Irving. 100 Per Cent Money — Adelphi, 1935

Foster and Catchings: Money — Houghton, Mifflin, 1930

Foster and Catchings: Profits — Houghton, Mifflin, 1925

Gayer, A.D.: Monetary Policy and Economic Stabilization — Macmillan, 1935

Gayer, A.D.: Public Works in Prosperity and Depression — N.B.E.R., 1935

Gilbert, Milton: Currency Depreciation and Monetary Policy — U. of Penn. Press, 1939

Graham, F.D.: Exchange, Prices and Production in Hyper-Inflation: Germany, 1920-1923 — Princeton U. Press, 1930

Graham, F.D. and Whittlesey, C.R.: Golden Avalanche — Princeton U. Press, 1939

Gregory, T.E.: The Gold Standard and its Future — Dutton, 1935

Greidanus, T.: The Development of Keynes’ Economic Theories — King, 1939

Hall, N.F.: The Exchange Equalization Account — Macmillan, 1935

Hamilton, E.J.: American Treasure and the Price Revolution in Spain — Harvard U. Press, 1934

Hansen, Alvin H.: Economic Stabilization in an Unbalanced World — Harcourt, Brace, 1932

Hansen, Alvin H.: International Economic Relations, Part III — Hutchins Commission, U. of Minnesota Press, 1934.

Hardy, C.O. Credit Policies of the Federal Reserve System — Brookings, 1932

Hardy, C.O. Is There Enough Gold? — Brookings, 1936

Harris Institute Lectures: Gold and Monetary Stabilization — U. of Chicago Press, 1932

Harris, S.E.: Assignats — Harvard U. Press, 1930

Harris, S.E.: Monetary Problems of the British Empire-Macmillan, 1931

Harris, S.E.: Twenty Years of Federal Reserve Policy — Harvard U. Press, 1933

Harris, S.E.: Exchange Depreciation — Harvard U. Press, 1936.

Harris, S.E.: Economics of the American Defense Program — Norton, 1941

Harrod, R. F.: The Trade Cycle — Clarendon Press, 1936.

Harrod, R. F.: International Economics — Nisbet, 1939.

Hawtrey, R.G.: Currency and Credit — Longmans, 1928

Hawtrey, R.G.: Art of Central Banking — Longmans, 1932

Hawtrey, R.G.: A Century of Bank Rate — Longmans, 1939

Hayek, F.A.: Monetary Theory and the Trade Cycle — Harcourt, Brace, 1933

Hayek, F.A.: Beiträge zur Geldtheorie — Springer, 1933

Hayek, F.A.: Monetary Nationalism and International Stability — Longmans, 1937

Hayek, F.A.: Profits, Interest and Investment — Routledge, 1939

Hayek, F.A.: The Pure Theory of Capital — Macmillan, 1941

Heilperin, M.A.: International Monetary Economics — Longmans, 1939

Hicks, J.R.: Value and Capital — Oxford U. Press, 1939

Iversen, Carl: International Capital Movements — Oxford U. Press, 1936

Johnson, G.G.: The Treasury and Monetary Policy, 1933-38 — Harvard U. Press, 1939

Kalecki, M.: The Theory of Economic Fluctuations — Farrar and Rinehart, 1939

Kemmerer, E.W.: The A B C of the Federal Reserve System — Princeton U. Press, 1938

Kemmerer, E.W.: The Gold Standard — its Nature and Future — Economists Nat’l Com. On Monetary Policy, 1940

Keynes, J.M.: A Tract on Monetary Reform — Macmillan, 1923

Keynes, J.M.: Unemployment as a World Problem — U. of Chicago, 1931 (pp. 1-42)

Keynes, J.M.: Means to Prosperity — Harcourt, Brace, 1933

Keynes, J.M.: How to Pay for the War — Harcourt, Brace, 1940

King, W.T.C.: History of the London Discount Market — Routledge, 1936

Knight, A.W.: What is Wrong with the Economic System — Longmans, 1939

Kuznets, S.S.: National Income and Capital Formation, 1919-1935 — Nat’l Bureau of Econ. Research, 1937

League of Nations: Final Report on Gold–1932

League of Nations: World Economic Survey (Annual)

League of Nations: Money and Banking; Monetary Review, Commercial and Central Banks (Vols. I and II) Annual

Lester, R.A.: Monetary Experiments — Princeton U. Press, 1939

Lundberg, E.: Economic Expansion — King, 1937

Machlup, Fritz: The Stock Market, Credit, and Capital Formation — Hodge, 1940

Madden, J.R. and Nadler, M.: International Money Markets — Prentice-Hall, 1935

Marget, A.W.: The Theory of Prices — Prentice-Hall, 1938

Marshall: Money, Credit, and Commerce — Macmillan, 1923

Marshall: Official Papers — Macmillan, 1926

Meade, J.E.: An Introduction to Economic Analysis and Policy — Oxford U. Press, 1938

Meade, J.E.: Consumers’ Credits and Unemployment — Oxford U. Press, 1938

Mises, L.: The Theory of Money and Credit — Harcourt, Brace, 1935

Moulton, H.G.: The Formation of Capital — Brookings, 1935

Moulton, H.G.: Income and Economic Progress — Brookings, 1935

Moulton, H.G.: Financial Organization and the Economic System — McGraw-Hill, 1938

Myers, Margaret G.: Paris as a Financial Centre — Columbia U. Press, 1936

National Industrial Conference Board: The Availability of Bank Credit, 1933-38 — 1939

Northrup, Mildred B.: Control Policies of the Reichsbank — Columbia U. Press, 1938

Ohlin, B.: Penningpolitik, Offentliga Arbeiten, etc., — Nordstedt, 1934

Ohlin, B.: Interregional and International Trade — Harvard U. Press, 1933

Ohlin, B.: Editor of issue of The Annals, May 1938 on Some Problems and Policies in Sweden

Paris, J.D.: Monetary Policies of the U.S., 1932-38 — Columbia U. Press, 1938

Phillips, C.A.; McManus, T.F. and Nelson, R.W.: Banking and the Business Cycle — Macmillan, 1939

Pigou, A.C.: The Theory of Unemployment — Macmillan, 1933

Pigou, A.C.: Employment and Equilibrium — Macmillan, 1941

Plumptre, A.F.W.: Central Banking in the British Dominions — U. of Toronto Press, 1940

Prather, C.L.: Money and Banking — Irwin, 1940

Riefler, W.W.: Money Rates and the Money Market — Harper, 1930

Robbins, Lionel: The Great Depression — Macmillan, 1934

Robinson, Joan: Introduction to the Theory of Employment — Macmillan, 1937

Roll, Erich: About Money — Faber and Faber, 1934

Saulnier, R.J.: Contemporary Monetary Theory — Columbia U. Press, 1938

Sayers, R.S.: Modern Banking — Oxford U. Press, 1937

Schumpeter, J.A.: The Theory of Economic Development — Harvard U. Press, 1934

Shackle, G.L.S.: Expectations, Investment and Income — Oxford U. Press, 1938

Shepherd, Henry L.: The Monetary Experience of Belgium, 1914-1936 — Princeton U. Press, 1936

Spahr, Walter E.: The Case for the Gold Standard — Economists’ Nat’l Com. On Monetary Policy, 1940

Thornton, Henry: An Enquiry into the Nature and Effects of the Paper Credit of Great Britain (1802) — Farrar and Rinehart, 1939 (Introduction by Hayek)

Thorp, Willard L.: Economic Problems in a Changing World — Farrar and Rinehart, 1939

Timoshenko, V.: World Agriculture and the Depression — U. of Michigan, Bureau of Business Research, 1933

Turner, R.C.: Member-Bank Borrowing — Ohio State U., 1938

Veblen, T.: Theory of Business Enterprise — Scribner’s, 1904

Veblen, T.: The Engineers and the Price System — Huebsch, 1921

Villard, H.H.: Deficit Spending and the National Income — Farrar and Rinehart, 1941

Vineberg, P.F.: The French Franc and the Gold Standard — McGill U., 1938

Viner, Jacob: Studies in the Theory of International Trade — Harper, 1937

Warren and Pearson: Gold and Prices — Chapman and Hall, 1935

Warren and Pearson: World Prices and the Building Industry — Wiley, 1937

Westerfield, R.B.: Our Silver Debacle — Ronald Press, 1936

Westerfield, R.B.: Money, Credit and Banking — Ronald Press, 1938

Whitaker, A.C.: Foreign Exchange — Appleton-Century, 2nd ed., 1933

White, Horace: Money and Banking — Ginn, 1936 (revised edition by Tippetts and Froman)

Whittlesey, C.R.: International Monetary Issues — McGraw-Hill, 1937

Wicksell, K.: Lectures on Political Economy, Money — Macmillan, 1935

Williams, J.H.: Argentine Trade under Inconvertible Paper — Harvard U. Press, 1920.

Willis, H.P., and Beckhart, B.H.: Foreign Banking System — Holt, 1929

Wood, Elmer: English Theories of Central Banking Control, 1819-1858 — Harvard U. Press, 1939

Articles

Angell, J.W.: “The 100% Reserve Plan” Quarterly Journal of Economics, November 1935

Angell, J.W.: “Foreign Exchange” Encyclopedia of the Social Sciences, Volume 6

Beveridge, W. H.: “Unemployment in the Trade Cycle”, Economic Journal, March, 1939.

Clark, Colin: “The Determination of the Multiplier from National Income Statistics”, Economic Journal, September, 1938.

Currie, L.: “The Failure of Monetary Policy to Prevent the Depression of 1929-32”, Journal of Political Economy, April 1934.

Curtis, Myra: “Is Money Saving Equal to Investment?” Quarterly Journal of Economics, August 1937

Duncan, A.J., and Gilboy, E.W.: “Propensity to Consume” Quarterly Journal of Economics, August 1939

Eddy, George A.: “The Present Status of New Security Issues”, Review of Economic Statistics, August 1939.

Ellis, Howard: “Some Fundamentals in the Theory of Velocity”, Quarterly Journal of Economics, May 1939.

Ellis, Howard: “Notes on Recent Business-Cycle Literature”, Review of Economic Statistics, August, 1938.

Ellis, Howard: “Exchange Control in Austria and Hungary” Quarterly Journal of Economics November 1939. Part II.

Graham, F.D.: “100% Reserves: comment”, American Economic Review, June, 1941.

Haberler, G.: “Mr. Kahn’s Review of ‘Prosperity and Depression’”, with rejoinder by R.F.Kahn, Economic Journal, June 1938

Hansen, Alvin H.: “Progress and Declining Population” American Economic Review, March 1939

Hansen*, Alvin H.: “Gold in a Warring World,” Yale Review, Summer, 1940

Hansen*, Alvin H.: “Monetary and Fiscal Controls in War Time” Yale Review, Winter, 1940

Hansen, Alvin H.: “Income, Consumption, and National Defense” Yale Review, Winter, 1940

Harris*, S.E.: “American Gold Policy and Allied War Economics”, Economic Journal, September, 1940.

Harrod R.F.: “An Essay in Dynamic Theory”, Economic Journal, March, 1939.

Hicks*, J.R.: “Mr. Keynes’ Theory of Employment”, Economic Journal, June, 1936.

Hicks*, J.R.: “Mr. Keynes and the ‘Classics’”: a Suggested Interpretation” Econometrica, April 1937

Hicks*, J.R.: “Mr. Hawtrey on Bank Rate and the Long-Term Rate of Interest,” The Manchester School, Vol. X, no. 1, 1939

Holden, G.R.: “Rationing and Exchange Control in British War Finance” Quarterly Journal of Economics, February 1940

Horsefield, J.K.: “Currency Devaluation and Public Finance, 1929-37” Economica, August 1939

Kaldor, Nicholas: “Capital Intensity and the Trade Cycle”, Economica, February, 1939.

Kaldor*, Nicholas: “Stability and Full Employment”, Economic Journal, December, 1938.

Kalecki, M.: “The Short-Term Rate of Interest and Velocity of Cash Circulation”, Review of Economic Statistics, May, 1941.

Keynes*, J.M.: “Alternative Theories of the Rate of Interest”, Economic Journal, June, 1937.

Keynes*, J.M.: “Relative Movements in Real Wages and Output” Economic Journal, March 1939

Kondratieff, M.D.: “The Long Waves in Economic Life”, Review of Economic Statistics, November, 1935.

Lange*, Oscar: “The Rate of Interest and the Optimum Propensity to Consume”, Economica, February 1938

Langum, J.K.: “The Statement of Supply and Use of Member Bank Reserve Funds”, Review of Economics Statistics, August, 1939.

Lehmann, Fritz: “One Hundred Per Cent Money”, Social Research, February, 1936.

Lerner*, A.P.: “Mr. Keynes’ General Theory of Employment, Interest and Money”, International Labour Review, October 1936 and November 1937.

Lerner, A.P.: “Saving Equals Investment”, Quarterly Journal of Economics, February 1938.

Lerner, A.P.: Alternative Formulations of the Theory of Interest,” Economic Journal, June, 1938.

Lerner*, Lange, Curtis, Lutz: “Saving and Investment”, Quarterly Journal of Economics, August, 1939.

Long, C.D.: “Long Cycles in the Building Industry, 1856-1935”, Quarterly Journal of Economics, May, 1939.

Lutz, F.A.: “The Outcome of the Saving-Investment Discussion”, Quarterly Journal of Economics, August, 1938.

Lutz, F.A.: “Velocity Analysis and the Theory of the Creation of Deposits”, Economica, May 1939.

Machlup*, F.: “Period Analysis and the Multiplier Theory”, Quarterly Journal of Economics, November, 1939.

Machlup, F.: “The Theory of Foreign Exchanges”, Economica, November, 1939.

Marget, A.W.: “The Monetary Aspects of the Walrasian System”, Journal of Political Economy, April 1935.

Marget, A.W.: “Leon Walras and the ‘Cash-Balance’ Approach to the Problem of the Value of Money”, Journal of Political Economy, October, 1931.

Morgenstern, O.: “Professor Hicks on Value and Capital” Journal of Political Economy, June 1941

Ohlin, Robertson, Hawtrey: “Alternative Theories of the Rate of Interest: Three Rejoinders”, Economic Journal, September, 1937.

Ohlin*, B.: Some Notes on the Stockholm Theory of Savings and Investment”, Economic Journal, March 1937, June, 1937.

Ohlin, B.: “Mechanism and Objectives of Exchange Control”, Supplement to American Economic Review, March 1937.

Pigou, A.C.: “Mr. J.M. Keynes’ ‘General Theory of Employment, Interest, and Money” Economica, May 1936

Plumptre, A. F. W.: “Interest Rates and Bank Credit in the British Dominions”, Economic Journal, June, 1939.

Poole, K.H.: “Tax Remission as a Means of Influencing Cyclical Fluctuations” Quarterly Journal of Economics, February 1939

Robinson*, Joan: The Concept of Hoarding”, Economic Journal, June, 1938.

Samuelson*, P.: “Interactions between the Multiplier Analysis and the Principle of Acceleration”, Review of Economic Statistics, May, 1939.

Samuelson, P.: “The Rate of Interest under Ideal Conditions”, Quarterly Journal of Economics, February, 1939.

Schumpeter, J. A.: “An Analysis of Economic Change”, Review of Economic Statistics, May, 1935.

Shirras, G. F.: “The Position and Prospects of Gold,” Economic Journal, June-September, 1940.

Simmons*, E. C.: “Treasury Deposits and Excess Reserves”, Journal of Political Economy, June, 1940.

Simons, H. C.: “Rules versus Authority in Monetary Policy”, Journal of Political Economy, February, 1936.

Somers, H. M.: “Monetary Policy and the Theory of Interest”, Quarterly Journal of Economics, May, 1941.

Viner, Jacob: “Mr. Keynes on the Causes of Unemployment: A Review” Quarterly Journal of Economics, November, 1936.

Watkins, L. L.: “The Expansion Power of the English Banking System,” Quarterly Journal of Economics, November, 1938.

Williams, J.H.: “The Adequacy of Existing Mechanisms under Varying Circumstances” Supplement to American Economic Review, March, 1937.

Williams*, John H.: “Fiscal Policy and Preparedness”, Proceedings, Academy of Political Science, May, 1939.

Williams, John H.: “Economic and Monetary Aspects of the Defense Program”, Federal Reserve Bulletin, February, 1941.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003, Box 3, Folder “Economics, 1941-1942”.

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1941-42
HARVARD UNIVERSITY
ECONOMICS 141
Principles of Money and Banking
Mid-Year Examination

(Three hours)

  1. Choose any three from questions I-IV.
    1. Compare the formulations of (a) Robertson and (b) Keynes (Treatise and General Theory) with respect to the following:
      Equality or inequality of Saving and Investment (give equations and define terms).
      2. The role of investment as a determinant of income and employment.
    2. Develop Keynes’ theory of interest and compare with the theories (a) of the classicals and (b) of Wicksell and others belonging to his school.
      2. What is the role of the rate of interest as a determinant of income and employment?
    3. “The validity of the multiplier theory rests upon the stability of the consumption function.” Explain and evaluate this statement.
    4. Give a compact summary statement describing the most significant monetary events of the two decades 1920-1940, and indicate the lessons to be learned from each.
  1. Choose one from questions V and VI.
    1. According to Angell: (1) what are the inter-relations of (a) anticipations, (b) investment, and (c) income, and what are the determinants of each; (2) what are the determinants and the role of (a) market rates of interest, (b) the money supply, an (c) money hoards?
    2. Critically state and evaluate the central thesis in Hayek’s Prices and Production.

Source: Harvard University Archives. Harvard University Mid-term Examinations, 1852-1943, Box 15. Papers Printed for Mid-Year Examinations [in] History, History of Religions, …, Economics, …,Military Science, Naval Science. January-February, 1942.

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1941-42
HARVARD UNIVERSITY
ECONOMICS 141
Principles of Money and Banking
Final Examination

(Three hours)

Discuss THREE topics.

  1. The relation of consumption to income and its significance for fiscal policy.
  2. The implications of fiscal policy for monetary policy and the banking system.
  3. The ideas of Foster and Catchings and of Hayek regarding the “paradox of savings.”
  4. Fellner’s analysis of the “technological argument of the stagnation thesis.”
  5. Milton Gilbert’s analysis of war expenditures and national production.

Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001, Box 6, Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …,Military Science, Naval Science. June, 1942.

Images Source:  Hansen and Williams from Harvard Classbook 1942.

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Exam Questions Harvard

Harvard. Readings and Final Exam for Business Cycles. Hansen and Haberler, 1942

 

Reading assignments and the final exam for the business cycles course taught at Harvard in 1938 by Alvin Hansen and Gottfried Haberler were posted earlier.

Also posted earlier are the Course outline and exam for 1949 and the course outline for 1950. that were taught by Alvin Hansen.

For 1955-56 we have the course outline and reading assignments again jointly taught by Hansen and Haberler.

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Course Enrollment

Economics 45a 2hf. Professors Hansen and Haberler. — Business Cycles.

Total 59: 2 Graduates, 14 Seniors, 30 Juniors, 11 Sophomores, 1 School of Public Administration, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1941-42, p. 63.

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SPECIFIC READING ASSIGNMENTS
IN ECONOMICS 45a
1941-42

  1. First four weeks:
    1. Haberler: Prosperity and Depression, Chapters 1, 9, 10, 11
    2. Hansen: Fiscal Policy and Business Cycles, Chapters 1, 2
    3. Schumpeter: Business Cycles, pp. 325-351
    4. Schumpeter: “Analysis of Economic Change,” Review of Economic Statistics, May 1935
    5. Kondratieff: “The Long Waves in Economic Life,” Review of Economic Statistics, November 1935
    6. Mitchell: Business Cycles, Chapter 3
    7. Federal Reserve Chart Book (Available at the Coop. 60¢)
  2. Six weeks:
    1. Hansen: Full Recovery or Stagnation? Chapters 1-5
    2. Haberler: Prosperity and Depression, Chapters 2-8; 13
    3. Hansen: Fiscal Policy and Business Cycles, Chapters 11, 12
  3. Last two weeks:
    1. Hansen: Business Cycle Theory, Chapters 4 and 8
    2. Hansen: Full Recovery or Stagnation?, Chapters 16-20
  4. Reading Period (Choose A or B):
    1. 1. Mitchell: “Business Cycles,” Encyclopedia of the Social Sciences, Vol. 3, pp. 92-106
      2. Hansen: Fiscal Policy and Business Cycles, Chapters 3-5: 16-17; 23-24
    2. Clark, J.M.: Strategic Factors in Business Cycles (entire book)

Source: Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003. Box 3, Folder “Economics, 1941-1942”.

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1941-42
HARVARD UNIVERSITY
ECONOMICS 45a
BUSINESS CYCLES
Final Examination

I

(Answer any THREE of the four questions in Part I.)

  1. Enumerate, describe and compare waves of different length suggested in the literature on business cycles. Discuss especially Schumpeter, Kondratieff, and Hansen with respect to the schema they suggest and the analysis they make of these different wave movements.
  2. Discuss the typical behavior of interest rates in the cycle and the role attributed to interest rates in the explanation of the cycle by different theorists.
  3. Compare the downturn in 1929 with that in 1937. How do they differ, and what are the differences in the explanations suggested thereby?
  4. Discuss briefly the essential features of (a) the multiplier principle and (b) the acceleration principle. Discuss their interaction and indicate the various types of movement which may result from their interaction.

II

(Answer EITHER A or B)

A.

(1) Discuss the technique used by Mitchell in the article in the Encyclopedia of the Social Sciences for the analysis of business cycles.

(2) Compare the role of (a) monetary policy, and (b) fiscal policy in the United States in the recovery from 1933 to 1936.

B. Sketch the theoretical skeleton of J.M. Clark’s Strategic Factors in Business Cycles.

 

Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001, Box 6, Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …,Military Science, Naval Science. June, 1942.

Image Source:  Alvin Hansen and Gottfried Haberler in the Harvard Class Album, 1942.

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Economists Harvard Lecture Notes

Harvard. Tobin’s notes to lecture by Alvin Hansen on Keynes’ General Theory, May 1938

 

The following notes were taken by James Tobin at the end of his junior year at Harvard. The notes for this lecture by Alvin H. Hansen on Keynes’ General Theory were “filed” as loose-leaf pages inserted into a bound volume of Tobin’s handwritten course notes for Economics 41 (Money, Banking, and Commercial Crises, taught by John H. Williams and Seymour Harris). Hansen’s lecture might have been a guest lecture for that course since only a recitation section taught by Kenyon Edward Poole was included in the notes for that date.  

Also on that date in history at Harvard: Gunnar Myrdal held the second lecture in his four-lecture Godkin public lecture series “The Population Problem and Social Security”.

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Lecture
5/4/38
Prof. Alvin H. Hansen of Garver & Hansen
Littauer Professor of Political Economy

Keynes’ General Theory.

Not mainly concerned with trade cycle. Ch[apter] on trade cycle not very original. Cycle consists in fluctuation of rate of investment-purchase of capital-goods. Keynes holds that fluctuations in rate of invest[ment] due to fluctuations in the rate of prospective profits, in the marg[inal] efficiency of capital. Keynes emphasizes the rôle of expectations—psychology. Quick shift from prosperity to depression due to violent shifts in expectation from optimism to pessimism.

Mainly concerned with larger problem of full empl[oyment] of labor and the other factors of production. Could still have trade cycle but its booms would hit full employment. But also conceivable is a society in which ceiling of fluctuations is below full empl[oyment]—permanent under-employment. This long-run under-empl[oyment] Keynes mainly concerned with. Modern societies tend to be in a situation of chronic under-employment. He accuses classicals of working on assumption that society has long-run tendency to full empl[oyment]. Classical writers were concerned with pricing system and returns to different factors, and how much labor, etc., was used. R[ate] of int[erest] for example determined amount of saving cped [compared?] to consumption out of given income. This according to K[eynes] only goes with full empl[oyment] assumption. Rise in consumption in condition of under-empl[oyment] will lead to rise in investment as well. These are not alternatives until there is full empl[oyment]. This well realized by bus[isness] cycle theorists. Keynes applies it to long-run analysis.

What determines the volume of employment?

1) Rate of interest
2) Marg[inal] efficiency of capital. (Prospective rate of profit anticipated by bus[iness] man.)
3) Propensity to consume.

Nothing new about introducing rate of int[erest] as a determinant. Wicksell 1898 set forth determinants of expansion as prospective rate of profit on one side and r[ate] of int[erest] on the other side. Keynes adds the propensity to consume. dC/dY >0, <1, decreases. Rich societies have tendency to fail to maintain level of income once achieved. A society which consumes all of its income would have no difficulty in maintaining its level, because no deficiency in income-spending from incomes pd [paid] out to factors. If some part is not spent on consumers’ goods—just saved without a purchase of capital-goods – those who save are not actual investors-entrepreneurs—and there is not an equal amount of new investment, there is a tendency for incomes to fall. If propensity to consume is low, other determinants of employment must be very strong—high prospective rate of profit, low r[ate] of int[erest]—in order to balance saving.

“Classical” relation of r[ate] of int[erest] to saving. Later classical writers qualified argument: if r[ate] of int[erest] is very high, more saving; if low, less. But in between, there are the fixed-income savers. Keynes: determinant is level of incomes. Wouldn’t say no relation of saving to r[ate] of int[erest]. Given r[ate] of int[erest], determinant is level of incomes. There is for K[eynes] then no minimum r[ate] of int[erest], such as Cassel found: if int[erest] falls there because of shortness of human life people will say int[erest] is so low that not much income from it. Hence they will consume capital. At this p[oin]t tendency for saving to decrease, & consumption [to] increase. For K[eynes] there is another minimum point, below which there is not decrease of saving but an increase of hoarding. K[eynes] distinguishes mkt [market] & pure rates of int[erest]. Special risk in buying long-term commitment—risk is that r[ate] of int[erest] will rise a little bit in future, price of bond will drop so as to wipe out all int[erest] gain on it. Hence there is pt[point] where we won’t bother to buy securities but will hold cash. R[ate] of int[erest]not driven down below point of consump[tion] ncrease. What people will do is hold savings in liquid forms.

In rich community, marg[inal] efficiency of capital low; propensity to consume low; but rate of int[erest] can’t keep falling because of liquidity-preference. Hence there is not adequate volume of new invest[ment] to maintain full employment. R[ate] of int[erest] doesn’t drop to point where people stop saving & consume more, & rectify the difficulty; but is held up by liquidity preference.

Emphasizes largely r[ate] of int[erest]; Spiethoff thinks important thing in expansion is marg[ignal] efficiency of capital, which K[eynes] largely takes for granted. Spiethoff’s factors influencing prospective rate of profit on new invest[ment]: expanding market, increasing population, inventions & giant industries. All these associated with a young & growing capitalism, as in 19th.—unique century, conquering the world and revolutionizing the industrial technique and expanding population. Now decline in population, and no new mkts [markets]. K[eynes] assumes this exploitation of opportunities & emphasizes the monetary rate of int[erest], not as Spiethoff on non-monetary influences on marg[inal] efficiency. Risk & uncertainty of modern world decrease the will to invest—and perhaps also the tendency to save w[oul]d be greater. Failure of invest[ment] outlet.

K[eynes]’s solutions:

1) Artificially create a low rate of interest.
2) Stimulate consump[tion] by redistribution of income.
3) Enlarge volume of public investment.

[Qualifications]

1) How far will stimulate invest[ment] doubtful.
2) Effects of taxation for this purpose may hurt private invest[ment]
3) Public invest[ment] may be offset by private invest[ment] decline.

            Economic policies are choice among evils.

 

Source: Yale University Archives. Papers of James Tobin.  Box 6, Loose pages in bound lecture notes for Economics 41 taken by James Tobin during the 1937-38 academic year at Harvard University.

Image Source: James Tobin senior year portrait in Harvard Class Album, 1939.

Categories
Exam Questions Harvard

Harvard. Mid-year exam. Principles of Money and Banking. Hansen and Williams, 1948-49.

 

Syllabi, reading assignments, bibliography and examinations for the Hansen-Williams money and banking course at Harvard have been transcribed and posted earlier for 1947-48; 1949-50. This post helps to fill the gap of course examinations.

____________________________

Enrollment

[Economics] 241 (formerly Economics 141a and 141b). Principles of Money and Banking. Professors Hansen and Williams.

(F) Total 73: 44 Graduates, 18 Public Administration, 1 MIT, 2 Juniors, 6 Radcliffe, 2 Others.
(S) Total 66: 43 Graduates, 15 Public Administration, 1 MIT, 4 Radcliffe, 3 Others.

Source: Harvard University. Report of the President of Harvard College, 1948-49, p. 78.

____________________________

1948-49
HARVARD UNIVERSITY
ECONOMICS 241a
Final Exam. January, 1949

PART I (Required)

Outline and discuss the current problems (relating to monetary and banking policy) disclosed, for example, in the last three Annual Reports of the Board of Governors of the Federal Reserve System. Among other things show why the current problems are different from those of the decades of

(a) the twenties
(b) the thirties.

PART II (Answer ANY THREE questions)

  1. Compare Wicksell and Keynes with respect to their theories of money and prices, showing, among other things, in what respects Keynes draws on the Wicksellian analysis and in what respects Keynes’s contribution is more complete.
  2. Write an essay on the monetary theories of any twoof the following:

(a) Robertson
(b) Hawtrey
(c) Hayek
(d) Fisher
(e) Marshall
(f) Henry Simons
(g) Lerner

  1. Explain by the aid of the modern theory of income determination the conditions under which monetary policy may be

(a) fully effective
(b) a necessary supplement to fiscal policy as means of raising real income and employment.

  1. Explain (by making use of the modern tools of analysis) the role of wages in the theory of price-level determination.

 

Source: Harvard University Archives. Final Examinations, 1853-2001. Box 16, Papers Printed for Final Examinations: History, History of Religions, …,Government, Economics, Anthropology,…, Naval Science. February, 1949.

Image Source: Alvin H. Hansen and John H. Williams in Harvard Class Album 1942.

Categories
Bibliography Harvard Suggested Reading Syllabus

Harvard. Course outlines and reading lists. Business Cycles and Economic Forecasting, Haberler & Hansen, 1955-56

 

The pairing of Gottfried Haberler and Alvin Hansen at Harvard for business cycle teaching spanned decades.

For comparison, the reading list and final exam for the course 17 years earlier:   Haberler and Hansen, 1938.

________________

Economics 245a
Business Cycles

Professor Haberler — Fall Term, 1955

Part I. Basic Facts and Concepts.

Types of economic changes and fluctuations

Definition of business cycles

Constant and varying characteristics

Income, production, employment, unemployment
Prices, wages, interest rates, etc.

Cyclical phases

Amplitude, length

Short cycles, intermediate cycles, long waves

Cycles and crises

Cycle history

Approaches to the study of business fluctuations

Descriptive and historical
Statistical and econometric
Theoretical

Part II. Explanation of Business Cycles

Theory of business cycles and theory of employment

Economic fluctuations and long-term growth

Formal characteristics of cycle theories

Statics-dynamics
Exogenous-endogenous theories

Older Cycle Theories

“Monetary” theories vs. “real” theories
Savings — investment
Inventions, innovations; Schumpeter’s theory
Psychological factors: Pigou, Keynes
Agriculture and the business cycle

Modern Cycle Theories

Keynesian contribution
Multiplier — acceleration models
Harrod, Hansen, Samuelson, Kaldor, Kalecki, Metzler
Hicks’ “Contribution to the Theory of the Trade Cycle”
Inventory cycles
The role of wage and price rigidity in the cycle
Competition and monopoly and the business cycle
Many-cycle hypothesis
Is there still a business cycle?

Part III. Economic Growth

Part IV. Business Cycle Policy

Cycle Policy and Employment Policy

Can and should the Cycle be suppressed?

Have depressions a useful function?

Should business booms be prevented?

Preventive and curative depression policy?

Instruments of Policy

Monetary and credit policies
Fiscal policies
Price and wage policies
The role of business forecasting
Other measures

International aspects of business cycles and business cycle policy

Business cycles in planned economies

 

General Texts and Comprehensive Monographs

A. F. Burns, The Frontiers of Economic Knowledge (National Bureau of Economic Research, 1954)

Hansen, Business Cycles and National Income

Schumpeter, Business Cycles

Achinstein, Introduction to Business Cycles

Mitchell, Business Cycles

Bratt, Business Cycles and Forecasting

Pigou, Industrial Fluctuations (2ndedition, 1929)

Tinbergen and Polak, Dynamics of Business Cycles

Haberler, Prosperity and Depression

Gordon, Business Fluctuations

Readings in Business Cycle Theory (Blakiston)

Hansen-Clemence, Readings in Business Cycles and National Income

Readings in Monetary Theory (Blakiston)

N.B.E.R., Conference on Business Cycles

Speithoff, in International Economic Papers, III

Post Keynesian Economics. Kurihara, editor, Rutgers University Press, 1955.

 

Specific Readings

Part I.

Blakiston, Readings in Business Cycle Theory, Chs. 1, 2, 3.

Haberler, Prosperity and Depression, Ch. 9

Hansen, Business Cycles and National Income, Part I

Hansen-Clemence, Readings, Chs. 2, 3, 4 (for Part II: Chs. 11, 12, 16; for Part III: Chs. 28, 33, 36)

Mitchell, What Happens During Business Cycles? Chs. 2, 3, 4, 8, 10

N.B.E.R., Conference on Business Cycles, Gordon, Klein

Tinbergen-Polak, Dynamics of Business Cycles, Part I

H. L. Beales, “The Great Depression,” Economic History Review, October 1934

Slichter, “The Period 1919-1936….,” RES, 1937

Gordon, R. A., “Investment Behavior and Business Cycles,” RES, (to be published)

Ames, “A Theoretical and Statistical Dilemma—the Contributions of Burns, Mitchell, and Frickey to Business Cycle Theory, Econometrica, October 1948

K. D. Roose, “The Empirical Status of Business Cycle Theory,” Journal of Political Economy, October 1952

K. D. Roose, The Economics of Recession and Revival, New Haven, 1954

Part II.

(1) Haberler, Chs. 3, 8, 13
Hansen, Part III

(2) Schumpeter, Theory of Economic Development, Ch. 6
Frisch, “Propagation Problems and Impulse Problems….,” in Economic Essays in Honor of G. Cassel
Goodwin, “Innovations and Irregularity…,” RES, 1946

(3) Harrod, Toward a Dynamic Economics
Baumol, Economic Dynamics, Ch. 4

(4) Hicks, Trade Cycle
Goodwin, “Secular and Cyclical Aspects of Multiplier and Accelerator” in Income, Employment and Public Policy
Goodwin, “A Nonlinear Theory of the Cycle,” RES, Nov. 1950
Alexander, “Issues of Business Cycle Theory,” AER, Dec. 1951
Duesenberry, “Hicks on the Trade Cycle,” QJE, August 1950
Chenery, “Overcapacity and the Acceleration Principle,” Econometrica, Jan. 1952
Alexander, “Accelerator as a Generator of Steady Growth,” QJE, May 1949
Matthews, “Capital Stock Adjustement—Theories of the Trade cycle and the Problem of Policy” in Post-Keynesian Economics, Kurihara, ed.
Kaldor, “Economic Growth and Cyclical Fluctuations,” Economic Journal, March 1954
Meyer and Kuh, “Acceleration and Related Theories: An Empirical Inquiry,” RES, August 1955

(5) Keynes, General Theory…, Ch. 22
New Economics, Harris, ed., Ch. 36 (Goodwin), Ch. 39 (Smithies), Ch. 40 (Tobin)
Readings, Ch. 5 (Ohlin), Ch. 12 (Samuelson)
Kaldor, “A Model of the Trade Cycle,” Economic Journal, 1940
Kalecki, Essays in Theory of Economic Fluctuations
Fellner, “Employment Theories and Business Cycles,” in Survey of Contemporary Economics, 1948, Vol. I, Ellis, editor.

(6) Metzler, “Nature and Stability of Inventory Cycles,” RES, 1941
Abramovitz, Inventories and Business Cycles (and in Conference, above)
Nurkse, “The Cyclical Pattern of Inventory Investment,” QJE, August 1952

(7) Readings, Part IV, Monetary Theory
Haberler, Ch. 2
Wicksell, Lectures, II, pp. 209 ff.
Fisher, “Debt-Deflation…,” Econometrica, 1933

Part III.

Domar, “Capital Expansion, Rate of Growth and Employment,” Econometrica, April 1946
Harrod, Dynamic Economics
Harrod, “An Essay in Dynamic Theory,” in Harrod, Economic Essays
N.B.E.R., Studies in Income and Wealth, No. 16, Long-Range Economic Projection
L. B Yeager, “Some Questions about Growth Economics,” AER, March 1954
Meier, “Some Questions about Growth Economics—Comment,” and Yeager, “Reply,” AER, December 1954

Part IV.

Bishop, “Alternative Expansionist Fiscal Policies…,” in Income, Employment and Public Policy
Readings in Monetary Theory (Friedman)
Hansen, Part IV
N.B.E.R., Conference on Regularization of Business Investment, 1951
N.B.E.R., Studies in Income and Wealth, No. 17, Short-term Economic Forecasting Readings in Fiscal Policy (Richard Irwin).

*  *  *  *  *  *  *  *

BUSINESS CYCLES AND ECONOMIC FORECASTING
Economics 245b
Spring 1956
Professor Hansen

  1. Archibald, G.C., “Inventory Investment and the Share of Wages”, THE ECONOMIC JOURNAL, June, 1955.
  2. Brems and Ozga, “Economic Growth and the Price Level”, THE ECONOMIC JOURNAL, March, 1955.
  3. Kaldor, N., “The Relation of Economic Growth and Cyclical Fluctuations”, THE ECONOMIC JOURNAL, March, 1954.
  4. Blyth, C.A., “The 1948-49 American Recession”, THE ECONOMIC JOURNAL, September, 1954.
  5. Marris, R.L., “The Position of Economics and Economists in the Government Machine”, THE ECONOMIC JOURNAL, December, 1954.
  6. Gordon, R.A., “Investment Behavior and Business Cycles”, REVIEW OF ECONOMICS AND STATISTICS, February, 1955.
  7. Matthews, R.C.O., “The Saving Function and the Problem of Trend and Cycle”, REVIEW OF ECONOMIC STUDIES, Vol. XXII, 1954-55.
  8. Stigler, George J., “The Early History of Empirical Studies of Consumer Behavior”, THE JOURNAL OF POLITICAL ECONOMY, April, 1954.
  9. Brems, Hans, “Business Cycles and Economic Policy”, THE JOURNAL OF POLITICAL ECONOMY, June, 1954.
  10. Lewis, John P., “The Lull that Came to Stay”, THE JOURNAL OF POLITICAL ECONOMY, February, 1955.
  11. Brown, E. Cary, “The Static Theory of Automatic Fiscal Stabilization”, THE JOURNAL OF POLITICAL ECONOMY, October, 1955.
  12. Nurkse, Ragnar, “Period Analysis and Inventory Cycles”, OXFORD ECONOMIC PAPERS, September, 1954.
  13. Mills, E.S., “Professor Nurkse on Inventory Cycles”, OXFORD ECONOMIC PAPERS, June, 1955.

*  *  *  *  *  *  *  *

BUSINESS CYCLES AND ECONOMIC FORECASTING
Economics 245b
Spring 1956
Professor Hansen

  1. National Bureau of Economic Research, Studies in Income and Wealth, Vol. 16, LONG-RANGE ECONOMIC PROJECTIONS.
  2. Goldsmith, A STUDY OF SAVINGS IN THE U.S. 1955.
  3. Dewhurst, AMERICA’S NEEDS AND RESOURCES, 1955.
  4. Creamer, PERSONAL INCOME DURING BUSINESS CYCLES, (National Bureau of Economic Research), 1956.
  5. Fellner, TRENDS AND CYCLES IN ECONOMIC GROWTH, (Holt), 1956.
  6. Schumpeter, HISTORY OF ECONOMIC ANALYSIS.
  7. Klein, ECONOMIC FLUCTUATIONS IN THE U.S.
  8. Tinbergen, ECONOMETRICS.
  9. Abramovitz, INVENTORIES AND BUSINESS CYCLES.
  10. Baumol, ECONOMIC DYNAMICS.
  11. Harrod, TOWARDS A DYNAMIC ECONOMICS.
  12. Ricardo, Vol. II, NOTES ON MALTHUS, (ed. by Sraffa).
  13. Colean and Newcomb, STABILIZING CONSTRUCTION, (McGraw-Hill).
  14. Smithies, THE BUDGETARY PROCESS IN THE U.S.
  15. Smithies and Butters, READINGS IN FISCAL POLICY.
  16. Colm, ESSAYS IN PUBLIC FINANCE AND FISCAL POLICY.
  17. Burns, THE FRONTIERS OF ECONOMIC KNOWLEDGE.
  18. Hicks, THE TRADE CYCLE.
  19. Kurihara, POST-KEYNESIAN ECONOMICS.
  20. Lundberg, THE BUSINESS CYCLE IN THE POST-WAR WORLD.
  21. Wallich, MAINSPRINGS OF THE GERMAN REVIVAL.
  22. National Bureau of Economic Research, BUSINESS CONCENTRATION AND PRICE POLICY.
  23. Svenniloson, GROWTH AND STAGNATION IN THE EUROPEAN ECONOMY.
  24. Joint Committee on the Economic Report, (Nov. 9, 1955), FEDERAL TAX POLICY FOR ECONOMIC GROWTH AND STABILITY.
  25. PRESIDENT’S ECONOMIC REPORT, 1956.
  26. Lane and Riemersma, ENTERPRISE AND SECULAR CHANGE.

 

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003. Box 6, Folder “Economics, 1955-56 (2 of 2)”.

Image Source:  Hansen (left) and Haberler (right). Harvard Class Album, 1942.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Graduate economic analysis and public policy. Hansen and Slichter, 1946-47

 

While the paired Harvard graduate economic courses Economics 106a and 106b shared a common title “Economic Analysis and Public Policy”, it appears as though Alvin Hansen taught a course in macroeconomic analysis and his colleague Sumner Slichter taught a topics in public policy course (parallel play). Hansen’s course attracted 59 students while Slichter’s course had 25 enrolled students, so the two courses were hardly connected at the hip. For the first term course (Hansen) we have a detailed outline, reading list and exam questions, I could only find a rough outline (more of a course description), a very incomplete set of reading assignments, and the final exam for the second term course (Slichter).

________________

Course Enrollment
Fall term

[Economics] 106a. (fall term) Professor Hansen.—Economic Analysis and Public Policy

Total 59:  22 Graduates, 25 Public Administration, 3 Radcliffe, 9 Others.

Source:  Harvard University. Report of the President of Harvard College for 1946-1947, p. 70.

________________

ECONOMICS 106a
ECONOMIC ANALYSIS AND PUBLIC POLICY
1946-1947

General Outline of Course

  1. Concepts and Statistical Measures of Aggregate Income and Its Component Parts:

    1. Gross National Product.
    2. Net National Product.
    3. National Income.
    4. Income Payments.
    5. Factor Costs.
    6. Component Parts of National Income.

  2. Over-all Determinants of National Income:

    1. Consumption and Savings Functions: Investment and its Determinants; Acceleration and Multiplier Principles; Consumption and Income Distribution.
    2. The Interest Rate and the National Income.
      1. Classical vs. Monetary Interest Rate Theories: Loanable Fund Theory vs. Liquidity Preference.
      2. The Role of the Interest Rate: In Investment, Consumption, Income Distribution, etc.
      3. The Interest Rate and Economic Stability; The Case for
        1. Fluctuating Rates;
        2. Stable Rate;
        3. Declining Rate.
      4. The Interest Rate and Income Velocity of Money.
      5. The Role of Central Bank Credit in Income Formation.
    3. Costs and Profits.
      1. Wage Policy: Wages as Costs, and Wages as Purchasing Power; Wage Rates and Degrees of Utilization of Plant Capacity; Wages and Value of Output at Different Employment Levels.
      2. Price Policy: Profits and the Over-all Economy; Profits and Monopoly; Profits and Income Distribution; Profits and the Inducement to Invest; Profits and the Savings Function.
    4. The Role of the Government in Income Formation.
      1. Monetary Policy: Neutral vs. Positive Program.
      2. Tax Policy.
      3. Borrowing; Public Debt.
      4. Expenditure Policy; Standard Services; Developmental Outlays; Compensatory Spending.

  3. Income, Output, and Prices:

    1. Income Flows and the General Level of Prices.
    2. Income Elasticity and Price Elasticity in Different Industries.
    3. The Effect of Over-all Shifts in Income on Demand in Different Industries; Demand Schedules; Indifference Maps.
    4. The Effect of Over-all Shifts in Income on Supply.
      1. The Economics of the Firm: Marginal, Average, and Total Unit Cost Curves.
      2. The Economics of an Industry: Differential Cost; Increasing, Decreasing, and Constant Cost.
    1. Monopoly and Monopolistic Competition: Marginal Revenue and Marginal Cost; Monopoly and Efficiency; Administrative Prices.
    2. Income Flows, Distributive Shares, and Income Distribution.
    3. Full Employment and the Problems of Wage Inflation.
    4. Planning vs. Automatic Adjustments in a Free Market.

 

Economic 106b: Public Policy Decisions: Analysis of the Effect of Public Policy Decisions Upon the Over-all Economy, Upon Various Producing Groups, and Upon Other Sectors of the Population.

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics. 1895-2003.(HUC 8522.2.1) Box 4, Folder “Economics, 1946-1947 (2 of 2)”.

________________

ECONOMICS 106[a]
READING ASSIGNMENT

  1. Concepts and Statistical Measures of Aggregate Income and Its Component Parts:

    1. Required Reading:
      1. Hicks and Hart—The Social Framework of the American Economy, chapters 13-17.
      2. Livingston, S. Morris—Markets After the War, Bureau of Foreign and Domestic Commerce.
      3. Hansen, Alvin H.—Economic Policy and Full Employment, Chapters III-IV, (McGraw-Hill, 1946).
      4. Hansen and Perloff—State and Local Finance in the National Economy, (Norton, 1944), pp. 223-227.
      5. Basic Facts on Employment and Production, U.S. Senate Committee on Money and Banking, Print No. 4, 79th Congress, First Session.
      6. Survey of Current Business:
        1. May, 1942; pp. 9-13 (Gross National Product, 1929-1941).
        2. February, 1946; pp. 1-32 (The Economy of War and Transition).
      7. British White Paper on War Finance, British Government White Paper (Cmd. 6520) presented to Parliament on April 1944 (Reprinted in Federal Reserve Bulletin, July 1944, pp. 655-669).
      8. Federal Reserve Bulletin, August 1946 (Current Price Developments), pp. 833-843.
    2. Suggestions for Additional Reading:
      1. Clark Colin—The Conditions of Economic Progress, 1940.
      2. Kuznets, Simon—National Income and its Composition, 1919-1938, 1941.
      3. Martin, Robert F.—National Income in the U.S., 1799-1938, National Industrial Conference Board, 1939.
      4. The National Income of Principal Foreign Countries. The Conference Board Economic Record, August 3, 1939, Volume I, No. 4.
      5. Bowley, A. D.—Studies in the National Income, 1924-1938, 1942.
      6. Lindahl, Dahlgren, and Koch—National Income of Sweden, 1861-1930, 1937.
      7. Articles:
        1. Stone, Richard—“National Income in the United Kingdom and the United States”, Review of Economic Studies, Winter 1942-43, Volume X, No. 1.
        2. Kalecki, M.—“The White Paper on the National Income and Expenditure in the Years 1938-43”, Oxford Institute of Statistics Bulletin, July 1, 1944, Volume 6, No. 9.
        3. Dacey, W.M.—“The 1944 White Paper on National Income and Expenditure”, Economic Journal, June-September, 1944.
        4. Gilbert and Jaszi—“The 1945 White Paper on National Income and Expenditure”, Economic Journal, December 1945.

  2. Over-all Determinants of the National Income:

    1. Required Reading:
      1. Keynes, J.M.—General Theory of Employment, Interest and Money, (1936), Chapter 3, pp. 96-106; Chapters 9, 10, 13, 15, 18, 24.
      2. Meade and Hitch—Economic Analysis and Policy, (1938) Part I, Chapters 1-2; 5-9.
      3. Lerner, A. P.—The Economics of Control, (1944), Chapters 22, 23, 24.
      4. Robertson, D. H.—Essays in Monetary Theory, (1940), Chapter 1.
      5. British Government White Paper on Employment Policy, (Reprinted by MacMillan Co. as pamphlet entitled “Employment Policy”), 1944.
      6. Slichter, S. H.—“The Conditions of Expansion”, American Economic Review, March 1942.
      7. Hansen, Alvin H.—Fiscal Policy and Business Cycles, (Norton, 1941), Part III, Chapters 11-15.
    2. Suggestions for Additional Reading
      1. Beveridge, Sir William—Full Employment in a Free Society, (1944).
      2. Haberler, G.—Prosperity and Depression, (1941), Chapters 8, 13.
      3. Cassel, Gustav—On Quantitative Thinking in Economics, (1935), Chapter 4.
      4. Robinson, Joan—Introduction to the Theory of Employment.
      5. Hicks, J. R.—Value and Capital, (1938), Chapters 20, 21, 22.
      6. Hansen and Perloff—State and Local Finance in the National Economy, (1944), Chapters 9, 11.
      7. Hansen, Alvin H.:
        1. Full Recovery or Stagnation, (Norton, 1938), Chapters 1, 2, and Appendix.
        2. Economic Policy and Full Employment, (McGraw-Hill, 1946).
      8. Harris, S. E. (Editor):
        1. Economic Reconstruction, (McGraw-Hill, 1945), Chapters 10-16.
        2. Postwar Economic Problems, (McGraw-Hill, 1943).
      9. Jobs and Markets, de Chazeau, Hart, and Others, Committee on Economic Development, (McGraw-Hill, 1946).
      10. Financing American Prosperity; A Symposium of Economists, Twentieth Century Fund, 1945.

  3. Income, Output and Prices; Economics of the Firm; Economics of an Industry; Monopoly and Monopolistic Competition, etc.

    1. Required Reading:
      1. Meade and Hitch—Economic Analysis and Policy, Part II, Competition and Monopoly, Chapters 1-8; Part III, The Distribution of Income, Chapters 1-5; Part IV, The Supply of the Primary Factors of Production, Chapters 1-4; Appendix on Graphs, pp. 411-424; Charts I, II (end of book).
      2. Boulding, K. E.—Economic Analysis, pp. 421-470; 485-509; 596-634; 658-663; (1941).
      3. Chamberlin, E. H.—The Theory of Monopolistic Competition, 1942, Chapters 4, 5, 8.
      4. Hicks, J.R.—Value and Capital, Chapters 1, 2, 3.
      5. Wicksell, K.—Lectures, Volume I, Part III.
    2. Suggestions for Additional Reading:
      1. Stigler—The Theory of Competitive Price.
      2. Robinson, E.A.G.—Monopoly, (Cambridge Series), Chapters 1-3; 6; 8-9;12.
      3. Burns, Arthur—Decline of Competition.
      4. Walker, E.R.—From Economic Theory to Policy, (University of Chicago Press), Chapters 1, 3, 4, 10, 12.
      5. Purdy, Lindahl, and Carter—Market Organization and Price Policy, Prentice-Hall.
      6. Hitch and Hall—Oxford Economics Papers, Volume I, Business Pricing Policy.

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics. 1895-2003.(HUC 8522.2.1) Box 4, Folder “Economics, 1946-1947 (2 of 2)”.

________________

1946-47
HARVARD UNIVERSITY
ECONOMICS 106a

Final. January, 1947

(Write on any THREE questions)

    1. Explain what is meant by Gross National Product including in your discussion the following:
      1. Distinguish and compare Gross National Product, Net National Product, National Income, Income Payments, Disposable Income.
      2. Outline and discuss the component parts of the Gross National Product from two viewpoints: (a) Income-generation or outlays; (b) Disposal of income.
    2. State the savings-investment problem and show clearly the role of the consumption function (propensity to consume schedule) with respect to this problem. With respect to savings and investment discuss the ideas of Robertson and Keynes.
    3. Give an explanation of cost curves (marginal, variable and total unit costs) and show how this type of cost analysis throws light on the problem of inflation under conditions of full employment.
    4. Write an essay (about one hour) on any one (or two if you prefer) of the following:
      1. Keynes: General Theory of Employment, Interest and Money.
      2. Beveridge: Full Employment in a Free Society.
      3. Lerner: Economics of Control.
      4. Chamberlin: The Theory of Monopolistic Competition.
      5. Hansen: Fiscal Policy and Business Cycles, or Economic Policy and Full Employment.

Source:  Harvard University Archives. Final Examinations, 1853-2001.Box 13, Papers Printed for Final Examinations. History, History of Religions, … , Economics, … , Military Science, Naval Science. January, 1947.

________________

Course Enrollment
Spring term

[Economics] 106b. (spring term) Professor Slichter.—Economic Analysis and Public Policy

Total 25:  10 Graduates, 11 Public Administration, 1 Radcliffe, 3 Others.

Source:  Harvard University. Report of the President of Harvard College for 1946-1947, p. 70.

________________

READING ASSIGNMENT FOR ECONOMICS 106b
February 18, 1947

Pigou—Economics of Welfare

(Second Edition) Part III

Ch. XIV, pp. 520-542
Ch. XVI, pp. 553-566
Ch. XVIII, pp. 572-578

(Third Edition) Part III

Ch. XIV, pp. 548-571
Ch. XVII, pp. 592-604
Ch. XIX, pp. 611-617

(please post on bulletin board)

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics. 1895-2003.(HUC 8522.2.1) Box 4, Folder “Economics, 1946-1947 (2 of 2)”.

________________

March 19, 1947

Please put on reserve for Economics 106

Review of Economic Statistics, May 1938
American Economic Review Proceedings, May 1945
American Economic Review, September 1940
American Economic Review, December 1946

Sumner H. Slichter

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics. 1895-2003.(HUC 8522.2.1) Box 4, Folder “Economics, 1946-1947 (2 of 2)”.

________________

[Final] May 19, 1947
Economics 106[b]
Economic Analysis and Public Policy

(Three Hours)

I

(a) Discuss the effect of increase in employment upon the size of the workforce.

(b) So long as there are substantial amounts of additional resources, increases in expenditures may be counted upon primarily to produce increases in employment rather than increases in prices. Discuss the validity of this statement.

II

“A wage structure based upon ability to pay would prevent the best distribution of men and resources among enterprises and would thus limit the output of industry.” Do you agree? Explain.

III

History shows that the price level has been subject to great fluctuations. The cost of living, for example, has risen 50 percent since 1940. Wholesale prices have risen even farther. Within several years after the First World War there was a substantial drop in the price level. In view of the history of prices, do you regard original cost as a fair guide for determining the rate base for public utilities?

IV

“A progressive income tax tends to reduce the attractiveness of risky ventures to investors more than the attractiveness of less risky ventures.” Do you agree? Can this effect be prevented? How? If two ventures offer an even chance of a return above 5 percent and below 5 percent, how would you determine which is the more risky?

V

It is asserted that import duties fall in part upon the foreigners who consume the goods exported by the country levying the duty. Analyze this proposition and point out its limitations.

 

Source:  Harvard University Archives. Final Examinations, 1853-2001. Box 13, Folder “Final examinations, May 1947 ( 3 of 9)”.

Image Source:  Hansen and Slichter from Harvard Class Album, 1947.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Undergraduate economics course outline and exam for business cycles. Hansen, 1948-49

 

This post provides enrollment data, course outline, reading assignments and final examination questions for Alvin H. Hansen‘s undergraduate economics course on business cycles  for the first semester of the Harvard 1948-49 academic year.

The 1950-51 course outline only differs with respect to a few items. Beginning 1951-52 the material for this course was swept into the second semester of Economics 141. Money, Banking and Economic Fluctuations offered jointly by Alvin Hansen and John H. Williams.

_________________________

Course Enrollment

[Economics] 145a (formerly Economics 45a). Business Cycles (F). Professor Hansen.

Total: 83 of which 48 Seniors, 30 Juniors, 2 Sophomores, 1 Freshman, 1 Radcliffe, 1 Other.

 

Source: Harvard University. Report of the President of Harvard College, 1948-49, p. 77.

_________________________

Economics 145a
Business Cycles                 1948-49                    Professor Hansen

Part I. Descriptive Survey

Haberler, Prosperity and Depression, Ch. 1,9.
Hansen, Fiscal Policy and Business Cycles, Ch. I, II.
Schumpeter, “The Analysis of Economic Change,” in Readings in Business Cycle Theory, Ch. I.
Federal Reserve Chart Book (available at the Coop.)

**********

Suggested Reading:

Mitchell, “Business Cycles,” in Encyclopedia of the Social Sciences, Vol. 3, pp. 92-106.
Kondratieff, “The Long Waves in Economic Life,” in Readings in Business Cycle Theory, Ch. 3.
Frickey, Economic Fluctuations in the United States.
Burns and Mitchell, Measuring Business Cycles.
Beveridge, Full Employment in a Free Society, Part II, Sec. 1 and Appendix A.
Schumpeter, Business Cycles, pp. 161-174; 212-219.
Dewey and Dakin, Cycles, Ch. 1-9.

Part II. The Meaning and Genesis of National Product

Hansen, Economic Policy and Full Employment, Ch. 3, 4.
Gilbert and Jaszi, “National Product and Income as an Aid in Economic Problems,” in Readings in the Theory of Income and Distribution, Ch. 2.
Machlup, “Period Analysis and Multiplier Theory,” in Readings in Business Cycle Theory, Ch. 10, only pp. 210-234.
Morgan, Income and Employment, Ch. I.
Haberler, Prosperity and Depression, Ch. 8, Section 4, pp. 222-232; Ch. 13, Section 1, pp. 455-461.
Hansen, Fiscal Policy and Business Cycles, Ch. XI, XII, XIII, XIV.

**********

Suggested Reading:

National Income, Supplement to Survey of Current Business, July, 1947.
Kuznets, (a) The National Income and its Composition, Ch. 1; (b) National Income, A Summary of Findings.
M. Hoffenberg, “Estimates of National Output, Distributed Income, Consumer Spending, Saving, and Capital Formation,” Review of Economic Statistics, May, 1943.
Polanyi, Full Employment and Free Trade, Ch. I.
Kaldor, “The Quantitative Aspects of the Full Employment Problem in Britain,” Appendix C in Beveridge, Full Employment in a Free Society.
Smithies, “Forecasting Post-War Demand,” Econometrica, January, 1945.
National Planning Association, National Budgets for Full Employment.

Part III. Theory of Cycles and Investment

Haberler, Prosperity and Depression, Ch. 10, 11, and 3; Ch. 13, Section 3, pp. 473-479.
Hansen, (a) Fiscal Policy and Business Cycles, Ch. XVI and XVII; (b) Economic Policy and Full Employment, Ch. 14-16.
Keynes, General Theory, ch. 22.
Lerner, Economics of Control, Ch. 21, 22.
Harris, The New Economics, Ch. 33.
Schumpeter, Business Cycles, Ch. IV, Sections A, B, and C, pp. 130-161; Ch. VII, Section C., pp. 325-351.
Morgan, Income and Employment, Ch. 7-9.

**********

Suggested Reading:

Klein, The Keynesian Revolution, Macmillan, 1947. Ch. 1-4.
Long, Building Cycles and the Theory of Investment, Ch. I, II, VII, VIII, XII.
Haberler, Remainder of Prosperity and Depression, especially Chapter VIII.
Harris, The New Economics, Ch. 8-15; 18-19; 39-40.
Schumpeter, Further reading in Business Cycles, especially Chapters 6 and 7.
Tinbergen, Robertson, Hayek, Hawtrey in Readings in Business Cycle Theory, Ch. 4, 15, 16, 17.
Clark, Strategic Factors in Business Cycles.
Wilson, The Fluctuations in Income and EmploymentCh. 1-10.
Estey, Business Cycles, Ch. 1-16.
Hansen (a) Business Cycle Theory, Ch. 4, 8; (b) Full Recovery or Stagnation, Ch. 3 (Hayek); and Appendix Keynes’ Treatise, pp. 331-343.
Metzler, (a) “The Nature and Stability of Inventory Cycles,” in Review of Economic Statistics, August, 1941; (b) “Business Cycle Theory and the Theory of Employment,” in Am. Econ. Review, June, 1946.
Samuelson, Readings in Business Cycle Theory, Ch. 12.
Samuelson, Chapter II in Harris’ Postwar Economic Problems: Income, Employment and Public Policy (Essays in Honor of Alvin H. Hansen), W.W. Norton, 1948.
E. V. Morgan, Conquest of Unemployment, Samson-Low Co. London, 1948.

Part IV. Policy

Bd. of Gov. of Fed. Res. System, Postwar Studies No. 3, Comar, Public Debt and National Income, pp. 53-68.
Harris, The New Economics, Ch. 16-17; 34-35.
Hansen, (a) Fiscal Policy and Business Cycles, Ch. 9. (b) Economic Policy and Full Employment, Ch. 5-13; 22.
C. E. D., Research Staff, Jobs and Markets, Ch. 8.
Beveridge, Full Employment in a Free Society, Parts IV and V.
C. E. D., Taxes and the Budget, 1947.

**********

Suggested Reading:

Hicks, Ch. 24, in Readings in Income Distribution (Keynes and the Classics; also in Econometrica, Vol. 5, 1937).
Pigou, Lapses from Full Employment.
Kaldor, “Stability and Full Employment,” in the Economic Journal, Dec.1938.
Bd. of Gov. of Fed. Res. System, Postwar Studies, No. 3, Musgrave, “Federal Tax Reform,” pp. 22-52.
Schumpeter, Capitalism, Socialism and Democracy, Ch. XV, XVI, XVII.
Harold Smith, Testimony in Hearings of Senate Committee Banking and Currency on Full Employment Act of 1945, S. 380, pp. 676-696.
Twentieth Century Fund, American Housing, Ch. 12, pp. 311-341.
Financing American Prosperity, Ch. 3, 5, 6, 7 (Clark, Hansen, Slichter and Williams).

 

READING PERIOD ASSIGNMENT

Read one of the following four assignments:

  1. Morgan, Income and Employment, Ch. 10-18.
  2. Kaldor, Appendix C. (pp. 344-400) in Beveridge, Full Emploment in a Free Society.
  3. Polanyi, Free Trade and Full Employment, Ch. 3, 4, 6, 7; and H. Williams, “Free Enterprise and Full Employment,” Chapter 7 in Financing American Prosperity.
  4. Terborgh, George, The Bogey of Economic Maturity (entire book, disregarding appendices) and A. H. Hansen’s review of Terborgh’s book in Appendix B in Economic Policy and Full EmploymentandWright’s review in Review of Economic Statistics, February, 1946, pp. 13-22.

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1), Box 4. Folder: “Economics, 1949-1950 [sic] (2 of 3)”.

_________________________

1948-49
HARVARD UNIVERSITY
ECONOMICS 145a
[Final examination, January 1949]

Part I
(Answer any THREE questions)

  1. Certain theorists believe there is not one “business cycle,” but rather several of different duration and nature. Outline and discuss four types of cycle with particular reference to their interrelationships, if any.
  2. Discuss the factors that bring about a termination of the boom (the upper turning point). Introduce the views of different cycle theorists and critically examine their explanations.
  3. Gross National Product statistics provide an important tool in analyzing the cyclical nature of economic activity. Present the main components on (a) the expenditure side (b) the income (distributive shares) side of Gross National Product.
    Analyze the factors chiefly responsible for determining the level of: (a) investment, (b) consumption, (c) saving, in any period.
  4. (a) Using the Keynesian “instantaneous” analysis and assuming hypothetical values for the consumption function and the level of income, show how an increase of $10 billion in investment would affect income and consumption. Illustrate your answer graphically.
    (b) Show how the above analysis would be changed if the Robertsonian time period approach were used. What is the essential difference between the two forms of analysis, especially with regard to the multiplier.
  5. (a) Discuss the relative merits of fiscal and monetary policies as means of reducing business cycle fluctuations.
    (b) Discuss the proposals for stability and full employment contained in two CED publications: (1) Jobs and Marketsand (2) Taxes and the Budget.

Part II (Required of everyone)

Summarize the salient points in any oneof the following, and critically evaluate the conclusions reached by the author:

(a) Morgan: Income and Employment
(b) Kaldor: (Appendix C) in Beveridge, Full Employment in a Free Society.
(c) Polanyi: Free Trade and Full Employmentand Williams in Financing American Prosperity.
(d) Terborgh: The Bogey of Economic Maturity.

 

Source: Harvard University Archives. Harvard University. Final Examinations, 1853-2001 (HUC 7000.28, Box 16 of 284). Faculty of Arts and Sciences, Papers Printed for Final Examinations: History, History of Religions, … , Economics, … , Military Science, Naval Science, February, 1949.

Image Source:  Harvard Album 1952.

Categories
Economists Harvard Radcliffe Swarthmore

Harvard. Wolfgang Stolper describes his training in letter to Hobart College, 1941

 

This post provides Wolfgang Stolper‘s own description of his academic training, teaching and research interests as of early 1941 in a letter to the President of Hobart College regarding his application for an assistant professorship. Stolper’s Harvard coursework for 1934-37 was transcribed for an earlier post. He was on the job market for the 1941-42 academic year after having taught a wide range of courses at Harvard since completing his Ph.D. in 1938. 

Hobart’s offer ended up being only 73% of the offer he was to receive from  Swarthmore (and which he accepted). From the April 29, 1941 letter from President’s office at Swarthmore:  “I realize that the salary which we are offering you [$3300] is considerably under what you have been receiving this year. It is, however, the equivalent of your combined Harvard and Radcliffe salaries for the past two years…” A follow-up letter from the President of Swarthmore College dated May 7, 1941 confirmed the approval of Stolper’s appointment as Assistant Professor of Economics at Swarthmore for 1941-42 at a salary of $3300 ($900 higher than the Hobart offer).

Also of some interest is the rather casual/modest mention of what ultimately was to become Wolfgang Stolper’s greatest hit: “Right now I am finishing another article on Protection and Real Wages.”

________________

Carbon copy of Wolfgang Stolper’s letter
to President of Hobart College

Wolfgang F. Stolper

19 Ware Street
March 18, 1941

Mr. Brooks Otis
Hobart College
Geneva, N.Y.

 

Dear Mr. Otis,

I am writing this letter to you about my background and training, as you suggested at our meeting on March 17. If you think it desirable either you or I can ask the Harvard appointment office to send you all the documents concerning me.

First about my background. I was born in Vienna in May 1912. There I went to elementary school and through the first three years of high school. We then moved to Berlin where I finished high school (humanistisches Gymnasium) in 1930, and where I also studied law for three semesters. I then went to Bonn, where I studied law and economics in about the same proportions. My economics teachers were Professors Spiethoff, who is now retired, H. v. Beckerath, who is now at Chapel Hill, and Schumpeter who is now in Harvard. From Bonn I went to to Zürich where I wrote a thesis under Professor Eugen Grossmann on the reasons, economic and otherwise, which lead the various nations to defend different economic policies during the World Economic Conference in London in 1933.

In August 1934 I came to Harvard as a Holtzer fellow, and I held a University fellowship during the next year 1935/36. Since 1936 I have been teaching. I took somewhat more than the required eight courses, my main interests within the field of economics being: Theory, Money and Banking, Business Cycles, International Economic Relations, and Building.

In May, 1935 I took my M.A., and in May, 1938 I got my Ph.D.. My thesis was on the British housing boom from 1931-36, and its connection with monetary policy in the widest sense.

My teaching experience has been quite extensive, more so, I believe, than that of most of my colleagues. Besides the usual complement of tutees and the principles course I have been giving half of the lectures in the course on International Economic Relations [Econ 43a,  Report of the President of Harvard College 1938-39, p. 98;  Report of the President of Harvard College 1939-40, p. 99;  Report of the President of Harvard College 1940-41, p. 58,], and I am this year assisting Professors Haberler and Hansen in the course on Business Cycles [Econ 45a, Report of the President of Harvard College 1940-41, p. 58]. In Radcliffe College I am also giving a section of the course on principles, half of the course on International Economic Relations, and also half of the course on Business Cycles [Radcliffe College. Courses of Instruction 1940-41, pp. 43, 45.]. This year I was also asked to give a University Extension course on International Economic Relations [Report of the President of Harvard College 1940-41, p. 347].

The list of my publications does not look too impressive. I have published a number of short book reviews in the American Economic Review, a short theoretical article in the Quarterly Journal. My thesis which I have revised and brought up to date will be published by the Harvard University Press. I also just signed a contract with Blakiston Co. to write a text on International Trade together with my friend, Dr. H.K. Heuser who is Professor at the Fletcher School of Law and Diplomacy. Right now I am finishing another article on Protection and Real Wages.

Perhaps I should add that I am married and have a ten-year old son.

I hope that this information is what you wanted. My teachers and senior colleagues will of course be glad to give you any information about me which you might want. I need hardly add that I am very interested in the position, and that I, therefore, hope very much to hear from you again in the not too distant future.

Yours very sincerely,

________________

Job Offer to Wolfgang Stolper from Hobart College

HOBART COLLEGE
Geneva, New York

April 29, 1941

The President

 

Mr. Wolfgang F. Stolper
19 Ware Street
Cambridge, Massachusetts

 

Dear Mr. Stolper:

I regret to think that more than a month has passed since I talked with you at Cambridge. Doubtless you have gathered that we had entirely lost interest in you in the interim. That is, however, by no means the case. Since we have to appoint three men at this time, a sociologist, a political scientist and an economist we have, necessarily, had to proceed rather slowly. Our major preoccupation so far has not been Economics simply because we have had to concentrate on one thing at a time. We have now, however, reached a point where the Economics appointment is directly concerning us.

I am writing this letter to you to find out more definitely what your expectations would be. The plain fact is that we find that we cannot offer the salary that we should like to. The best thing that we can do for next year in Economics is an Assistant Professorship at twenty-four hundred dollars ($2400.00). I might also add, as I think I said to you personally, that anyone appointed to this position would have considerable freedom in the choice of courses and in the teaching, and a considerable opportunity to influence the operation and planning of the whole Social Science curriculum here in cooperation with his colleagues in Sociology and Political Science,–that is, of course, if he cared to do so.

If it is not too much trouble, would you drop me a line stating whether you would still be interested in the job as outlined above?

Very truly yours,
[signed]
Brooks Otis

BO/bg

________________

Carbon copy of Stolper letter
declining Hobart offer

Wolfgang F. Stolper

19 Ware Street
May 2, 1941

Mr. Brooks Otis
Hobart College
Geneva, N.Y.

 

Dear Mr. Otis,

Thank you very much for your letter of April 29. I regret very much that I have to reject your offer to come to Hobart next year since I have just accepted a position as Assistant Professor at Swarthmore College.

I was very glad to have had a chance of meeting you, and I hope very much that this letter will not be the end of our relationship.

Very truly yours,

 

Source:Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archive. Wolfgang F. Stolper Papers, Box 23, Folder “[illegibly marked]”

Image Source: Wolfgang F. Stolper from  John Simon Guggenheim Memorial Foundation (Fellow, 1947).

Categories
Exam Questions Harvard

Harvard. Year-end exams. Money, Banking, Commercial Crises. Young, 1921-27

 

Today’s artifacts come from the roaring ’20s. Besides his courses in economic theory, Allyn A. Young taught a year long course at Harvard, “Money, Banking and Commercial Crises”. Before presenting enrollment figures and the exams for Young’s Economics 3, I have assembled a chronology that identifies the course instructors over the entire period 1911-1946. Links are provided to the related artifacts that have been transcribed here at Economics in the Rear-view Mirror. 

The chronology is followed by Young’s course description for 1924-25. Presumably there was a mid-year exam for the course, but these were not included in the printed collection of final course examinations. It is possible that the questions have been limited to the second-semester’s course content. This is something that definitely deserves checking.

___________________

Chronology of the Harvard economics course
“Money, Banking and Commercial Crises”

This two semester course was the product of merging the one semester course “Commercial Crises and Cycles of Trade” (Economics 12) with the two semester sequence “Money” and “Banking and Foreign Exchange” (Economics 8a and 8b, respectively).

The new course “Money, Banking, and Commercial Crises” (Economics 8, then 3, and later 41) was a staple of economics course offerings for the next 35 years.

Economics 8

1911-12 taught by E.E. Day

Economics 3

1912-13, 1913-14 taught by E.E. Day.

Money, Banking, and Commercial Crises (1914-15) taught by Benjamin M. Anderson.

1915-16 taught by Norman John Silberling

Money, Banking, and Commercial Crises (1917-18) taught by Benjamin M. Anderson.

1918-19, 1919-20 taught by A. E. Monroe.

1920-21 through 1926-27 taught by Allyn A. Young. Year-end exams transcribed below.

1927-28 through 1931-32 taught by John H. Williams

1932-33 taught by John H. Williams, Joseph Schumpeter and Lauchlin Currie.

1933-34 [course title: Money, Banking, and Cycles] Seymour Harris

1934-35, 1935-36 taught by John H. Williams and Seymour Harris

Economics 41

1936-37  taught by John H. Williams and Seymour Harris

Money, Banking, and Commercial Crises (1937-38) John H. Williams and Richard V. Gilbert.

1938-39 to 1941-42 taught by John H. Williams and Seymour Harris

1942-43, 1943-44 taught by Alvin Hansen and John H. Williams

1944-45 first semester taught by Schumpeter, second semester by Hansen and Williams

1945-46 Economics 41 morphed back into a two semester course “Money and Banking” taught by John H. Williams with a new one term course “Business Cycles” taught by Alvin Hansen.

________________________

Course Description, 1924-25

[Economics] 3. Money, Banking, and Commercial Crises. Mon., Wed., Fri., at 2. Professor Young.

In this course money and credit will be studied with special reference to the part they play in the present economic system. The principal problems of public policy with respect to the control of money and banking will be discussed. Foreign exchange, organized speculation in its relation to the money market, and the characteristic phenomena of commercial crises will be considered in some detail. The course will be conducted by means of lectures, discussions, frequent short reports or exercises on assigned topics, and (in the second half-year) a thesis based on work in the library. Certain subjects, such as the monetary and banking history of the United States, will be covered almost wholly by assigned reading, tested by written papers.

Source:  Division of History, Government and Economics 1924-25 published in Official Register of Harvard University, Vol. 21, No. 22 (April 30, 1924), p. 67.

_______________________

Enrollment, 1920-21

[Economics] 3. Professor Young —Money, Banking, and Commercial Crises.

Total 148: 6 Graduates, 34 Seniors, 67 Juniors, 26 Sophomores, 3 Freshmen, 30 Others.

Source:  Harvard University. Report of the President of Harvard College 1920-21, p. 19.

 

Year-end examination, 1920-21
HARVARD UNIVERSITY
ECONOMICS 3

  1. What is a dollar?
  2. In what manner and why were bank reserves inelastic under the national banking system? What were the consequences?
  3. Discuss the relation of overproduction to crises, distinguishing carefully different types of overproduction.
  4. Outline the sequence of events in a typical business cycle.
  5. Define: federal reserve bank note, gold-exchange standard, “value of money.”
  6. In what different ways may federal reserve notes be issued?
  7. Explain and discuss the “equation of exchange.”
  8. Describe and explain the dominating position the London money market held before the war.

 

Source:  Harvard University Archives. Examination Papers 1921 (HUC 7000.28, No. 63), Papers Set for Final Examinations [in] History, Church History,…,Economics,…, Fine Arts, Music. June, 1921, p. 56.

________________________

Course announcement, 1921-22

[Economics] 3. Money, Banking, and Commercial Crises

Mon., Wed., Fri., at 1.30. Professor Young.

Source:  Harvard University, Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences for the Academic Year, 1921-22 (Third Edition),p. 109.


Year-end examination, 1921-22
HARVARD UNIVERSITY
ECONOMICS 3

  1. Draw up a statement showing the condition of a national bank. Explain the meaning of the various items.
  2. Under what conditions is a large surplus an indication of a bank’s strength? How may it be an indication of weakness?
  3. To what classes of persons are rising prices advantageous? To what classes are they disadvantageous?
  4. Define: gold exchange standard, banker’s acceptance, finance bill, bimetallism, index number.
  5. What do you take to have been the causes of the fall of prices between 1874 and 1896?
  6. Why were “surplus reserves” under the national banking system normally exceedingly small?
  7. State and explain the Ricardian theory of gold movements. Are the recent movements of gold from Europe to the United States explainable by the Ricardian principle?
  8. What relation was there between the Bank Act of 1844 and the controversies of the restriction period?
  9. If the weight of the gold dollar were reduced by half would prices be doubled? Explain your reasoning.
  10. “The bulk of the acceptance business arising out of the foreign trade of the entire world has for many years been conducted in London.” Explain what this statement means and why it is true.

Final. 1922

 

Source:  Harvard University Archives. Examination Papers 1922 (HUC 7000.28, No. 64), Papers Set for Final Examinations[in] History, Church History,…,Economics,…, Social Ethics, Education. June, 1922.

________________________

Enrollment, 1922-23

[Economics] 3. Professor Young—Money, Banking, and Commercial Crises.

Total 129: 6 Graduates, 33 Seniors, 75 Juniors, 11 Sophomores, 1 Freshman, 3 Others.

Source:  Harvard University. Report of the President of Harvard College 1922-23, p. 92.


Year-end examination, 1922-23
HARVARD UNIVERSITY
ECONOMICS 3

  1. Define: money of account, standard of deferred payments, inflation, gold-exchange standard, discounting.
  2. Give an account of the life-history of a typical commercial long bill of exchange, as used in international trade.
  3. Discuss the nature and significance of the par of exchange between two countries when one has a gold standard and the other has (a) a gold standard, (b) a silver standard, (c) inconvertible paper.
  4. Is New York City likely to become the center of the world’s foreign exchange markets? Discuss.
  5. In what ways are federal reserve notes and clearing-house loan certificates alike? In what ways are they unlike?
  6. Professor W. C. Mitchell holds that prosperity breeds a crisis because of (a) the gradual increase in the costs of doing business, and (b) the accumulating tension of the investment and money markets. Explain and discuss.
  7. Was the federal reserve system responsible for the rise of prices between 1917 and 1920 and for the subsequent drop? Discuss.
  8. In what ways do the federal reserve banks effect (a) regional and (b) national clearings?
  9. On what grounds is it generally held that a larger use of bank acceptances in this country is desirable?

Final. 1923.

 

Source:  Harvard University Archives. Examination Papers 1923 (HUC 7000.28, No. 65), Papers Printed for Final Examinations [in] History, History of Religions,…,Economics,…, Social Ethics, Anthropology. June, 1923.

________________________

Enrollment, 1923-24

[Economics] 3. Professor Young—Money, Banking, and Commercial Crises.

Total 119: 2 Graduates, 25 Seniors, 81 Juniors, 5 Sophomores, 1 Freshman, 5 Others.

Source:  Harvard University. Report of the President of Harvard College 1923-24, p. 106.

 

Year-end examination, 1923-24
HARVARD UNIVERSITY
ECONOMICS 3

Answer nine questions.

  1. Explain the first and either the second or the third of these theories of the business cycle: (1) the “banking theory”; (2) Hobson’s theory of over-saving; (3) Fisher’s theory of the lagging adjustment of interest.
  2. “It thus appears that the Bank of England’s official rate is often through long periods a mere empty symbol, leaving no actual relation to the real price of money in London; and only becomes effective, and a factor in the monetary position when…” When?
  3. Draw up a statement showing the principal items which enter into the balance of payments.
  4. What conditions must be fulfilled if New York is to become the center of the world’s foreign exchange markets?
  5. State and discuss the doctrine of purchasing-power parity.
  6. Discuss the open-market operations of the federal reserve banks, with special reference to (a) the provisions of the law, (b) the purposes of such operations, (c) their relation to possible changes in prevalent types of commercial paper.
  7. Why did national bank notes constitute an inelastic currency? in just what manner do federal reserve notes constitute an elastic currency?
  8. Discuss the effect of organized speculation on prices, taking account of the fact that different types of price variations cover different periods of time.
  9. G. Moulton lists as “fallacies,” (1) the notion that a nation’s capacity to pay a foreign debt (such as reparations) is measured by the excess of its annual production over its annual consumption, and (2) the notion that a country can pay such a debt by selling securities to other countries. Do you agree? Explain.
  10. “In the main, banks do not lend their deposits, but rather, by their own extensions of credit, create the deposits.” Explain.

Final. 1924.

 

Source:  Harvard University Archives. Examination Papers 1924 (HUC 7000.28, No. 66), Papers Printed for Final Examinations [in] History, History of Religions,…, Economics,…, Psychology, Social Ethics. June, 1924.

________________________

Enrollment, 1924-25

[Economics] 3. Professor Young—Money, Banking, and Commercial Crises.

Total 111: 1 Graduate, 22 Seniors, 72 Juniors, 12 Sophomores, 1 Freshman, 3 Others.

Source:  Harvard University. Report of the President of Harvard College 1924-25, p. 75.

 

Year-end examination, 1924-25
HARVARD UNIVERSITY
ECONOMICS 3

Answer eight questions.

  1. Some writers hold that business cycles are caused by the expansion and contraction of bank credit. Why and how, in their view, does bank credit expand and contract?
  2. “A country can pay a foreign debt only by exporting more than it imports.” Explain and discuss critically.
  3. What was the major defect of the old national banking system?
  4. Define: rediscount, trust company, par collections, gold standard, purchasing power parity.
  5. “The Bank of England has power to exert a decisive influence over the magnitude of the gold movements to and from England.”—Furniss.
  6. What are the distinguishing characteristics (economic or legal, not physical characteristics) of the following types of money: silver dollars, United States notes, national bank notes, federal reserve notes?
  7. What are the prerequisites to the stabilizing of a depreciated paper currency?
  8. In what measure was the federal reserve system responsible for the rapid rise of prices in 1919 and 1920 and for the subsequent collapse?
  9. The federal reserve banks hold nearly $3,000,000,000 in gold, amounting to about 75 per cent of their liability on account of deposits and note issues combined, and constituting a large idle investment. Under what conditions would a considerable part of this gold be exported to other countries?

Final. 1925.

 

Source:  Harvard University Archives. Examination Papers 1925 (HUC 7000.28, No. 67), Papers Printed for Final Examinations [in] History of Science, History, …, Economics,…, Anthropology, Military Science. June, 1925.

________________________

Enrollment, 1925-26

[Economics] 3. Professor Young—Money, Banking, and Commercial Crises.

Total 110: 31 Seniors, 64 Juniors, 8 Sophomores, 1 Freshman, 6 Others.

Source:  Harvard University. Report of the President of Harvard College 1925-26, p. 77.

 

Year-end examination, 1925-26
HARVARD UNIVERSITY
ECONOMICS 3

Answer eight questions.

  1. Define deposits, discount, monetary standard, bimetallism.
  2. Formulate the “quantity theory” in any way that you prefer, and discuss it critically.
  3. A Brazilian firm draws a 90-day bill upon a London banker on account of a shipment of coffee to Boston.

(1) Why should the London bill be preferred to a bill upon New York or Boston?
(2) What is done with the bill after it reaches London?
(3) How is the bill finally settled?

  1. Some writers hold that when a government issues inconvertible paper money it obtains what is virtually a “forced loan.” Others hold that such an issue is more like taxation. What is your opinion, and why?
  2. Give an account of one of the following:

The socialist theory of crises.
Hobson’s theory of over-saving.
The “banking theory” of crises.

  1. Explain briefly the meaning of any two of the following phrases:

Par-collections controversy.
Open market policy.
Gold settlement fund.
Rediscounting

  1. Compare the Bank of England and either the Bank of France or the Reichsbank with respect to

(a) restrictions on note issue;
(b) discount policy.

  1. Was the federal reserve system responsible for the inflation of 1919-20 and the ensuing collapse? Explain.
  2. Just why, in your opinion, did the mark (or the franc, or the greenback) depreciate?

Final. 1926.

 

Source:  Harvard University Archives. Examination Papers 1926 (HUC 7000.28, No. 68), Papers Printed for Final Examinations [in] History, History of Religions, …, Economics,…, Social Ethics, Military Science. June, 1926.

________________________

Enrollment, 1926-27

[Economics] 3. Professor Young and Mr. Marget.—Money, Banking, and Commercial Crises.

Total 125: 2 Graduates, 27 Seniors, 74 Juniors, 14 Sophomores, 2 Freshmen, 6 Others.

Source:  Harvard University. Report of the President of Harvard College 1926-27, p. 74.

 

Year-end examination, 1926-27
HARVARD UNIVERSITY
ECONOMICS 3

Answer eight questions.

  1. Explain and discuss critically some form of the “banking” or “credit” theory of business cycles.
  2. “If prices are rising” Hawtrey observes, “the mere holding of commodities in stock yields an additional profit over and above the usual dealer’s percentage on the turn-over. If traders are to be deterred from borrowing money to buy commodities, the rate of discount must be high enough to offset the additional profit. But, it may be asked, how is this possible when prices are rising at the rate of 30 per cent per annum?” Hawtrey’s answer? Your own?
  3. Discuss critically either (a) Fisher’s proposals for stabilizing the price level, or (b) proposals for attaining the same end by controlling the supply of bank credit.
  4. Select two of the following and discuss their significance as “causes” of the depreciation of inconvertible paper money: (1) excessive quantity; (2) ultimate redemption uncertain; (3) unbalanced budget; (4) adverse balance of foreign payments; (5) speculation.
  5. Define: rediscounts, purchasing-power parity, invisible exports, monetary standard, par collections.
  6. Compare the note-issue system of the Bank of England (as established by the Act of 1844) with the note-issue system of the federal reserve banks, with particular reference to (a) separation of “banking” and “issue” departments, and (b) the type of assets by which the notes are “covered.”
  7. In what way or ways do purchases and sales of government securities in the New York money market by the federal reserve banks affect the state of that market?
  8. If you were Dictator of France, and took account of considerations of justice as well as of expediency, would you plan to stabilize the franc at its present (gold) value? Or would you plan for a gradual recovery of its pre-war value? Why?
  9. Discuss the relation of international gold movements to changes of (a) relative price levels, (b) relative discount rates.

Final. 1927.

 

Source:  Harvard University Archives. Examination Papers 1927 (HUC 7000.28, No. 69), Papers Printed for Final Examinations [in] History, History of Religions, …, Economics,…, Social Ethics, Military Science. June, 1927.

Image Source: Allyn Young in Harvard Classbook 1925.

 

 

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Principles of Money and Banking. Reading lists and semester exams. Williams and Hansen, 1949-50

 

Money and Banking was a graduate field that John H. Williams and Alvin Hansen dominated for over a decade at mid-20th century Harvard. Reading lists and exams for other years (e.g. 1946-47) have been posted, allowing us gradually to get a real time sense of the evolution of that field. This post was updated March 27, 2020 to include the final exam from the second semester.

Most recently course materials for 1941-42 have been posted as well.

_____________________

Course Enrollment

[Economics] 241 (formerly Economics 141a and 141b). Principles of Money and Banking.

(F) Professor J. H. Williams; (Sp) Professor Hansen.

(F) Total 61:  33 Graduates, 1 Senior, 21 Public Administration, 5 Radcliffe, 1 Other.
(S) Total 54: 31 Graduates, 18 Public Administration, 2 Radcliffe, 3 Others.

 

Source:  Report of the President of Harvard College, 1949-50, p. 75.

 

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PRINCIPLES OF MONEY AND BANKING
Economics 241
Fall Term—1949-1950

I. International Monetary Theory and Policy

Books

  1. American Economic Association (H. S. Ellis and L. A. Metzler, eds.): Readings in the Theory of International Trade.Philadelphia, Blakiston, 1948.
  2. Graham, Frank D.: The Theory of International Values. Princeton, Princeton University Press, 1948.
  3. Harris, S. E. (ed.): Foreign Economic Policy for the United States. Cambridge, Harvard University Press, 1948.
  4. Harris, S. E. (ed.): The New Economics. New York, Knopf, 1947.
    1. Bloomfield, A. I., “Foreign Exchange Rate Theory and Policy,” Chapter XXII; and
    2. Nurkse, Ragnar, “Domestic and International Equilibrium,” Chapter XXI.
  5. Harrod, Roy F.: Are These Hardships Necessary?London, Rupert Hart-Davis, 2nd, 1947.
  6. Keynes, J. M.: A Treatise on Money. New York, Harcourt, Brace, 1930, Vol. I, Chapter 21; Vol. II, Chapters 34-38.
  7. Nurkse, Ragnar: International Currency Experience. Geneva, League of Nations, 1944.
  8. Organisation for European Economic Co-operation:Interim Report on the European Recovery Programme.Paris, December 1948.
  9. United Nations, Economic Commission for Europe:
    1. Survey of Economic Situation and Prospects in Europe. Geneva, March 1948.
    2. Economic Survey of Europe in 1948. Geneva, 1949.
  10. Williams, John H.: Post-War Monetary Plans and Other Essays.English edition. Oxford, Basil Blackwell, 4th, 1949 (American edition. New York, Knopf, 3rded., 1947).

Articles

  1. Balogh, T.: “The Concept of a Dollar Shortage,” The Manchester School, XVII, May 1949, pp. 186-201.
  2. _______________ “Britain’s Economic Problem,” Quarterly Journal of Economics, LXIII, Feb. 1949, pp. 32-67.
  3. _______________ “Britain, O.E.E.C., and the Restoration of a World Economy,” Bulletinof the Oxford Institute of Statistics, XI, Feb.-March 1949.
  4. _______________ “Exchange Depreciation and Economic Readjustment,” Review of Economics and Statistics, XXX, Nov. 1948, pp. 276-285.
  5. _______________ “The United States and the World Economy,” Bulletinof the Oxford Institute of Statistics, VIII, Oct. 1946.
  6. Ellis, H. S.: “The Dollar Shortage in Theory and Fact,” Canadian Journal of Economics and Political Science, XIV, Aug. 1948, pp. 358-372.
  7. Graham, F. D.: “The Cause and Cure of ‘Dollar Shortages’,” (Essays in International Finance, No. 10). Princeton, Princeton University Press, Jan. 1949.
  8. Haberler, G.: “Some Economic Problems of the European Recovery Program,” American Economic Review, XXXVIII, Sept. 1948, pp. 495-525.
  9. Hawtrey, R. G.: “The Function of Exchange Rates,” Oxford Economic Papers, I, June 1949, pp. 145-56, and “A Comment” by Sir H. D. Henderson, Ibid., pp. 157-158.
  10. Henderson, Sir Hubert D.: “The International Problem,” (Stamp Memorial Lecture). London, Oxford University Press, 1946.
  11. _______________ “The Function of Exchange Rates,” Oxford Economic Papers, I, January 1949.
  12. _______________ “A Criticism of the Havana Charter,” American Economic Review, XXXIX, June 1949, pp. 605-17.
  13. Keynes, J. M.:“The Balance of Payments of the United States,” Economic Journal, LVI, June 1946, pp. 172-87.
  14. _______________ “National Self-sufficiency,” The Yale Review, XXII, Summer 1933.
  15. MacDougall, D. A.: “Further Notes on Britain’s Bargaining Power,” Oxford Economic Papers, I, Jan. 1949.
  16. _______________ “Britain’s Foreign Trade Problem,” Economic Journal, LVII, March 1947, pp. 69-113; and “A Reply (to T. Balogh), Ibid., LVIII, March 1948, pp. 96-98.
  17. _______________“Britain’s Bargaining Power,” Economic Journal, LVI, March 1946.
  18. _______________ “Notes on Non-discrimination,” Bulletinof the Oxford Institute of Statistics, IX, Nov. 1947.
  19. Meade, J. E.: “National Income, National Expenditure and the Balance of Payments,” Parts I-II, Economic Journal, LVII, Dec. 1948, and LVIII, March 1949.
  20. Metzler, L. A.:“The Theory of International Trade,” Chap. 6 in A Survey of Contemporary Economics(ed. by H. S. Ellis) Philadelphia, Blakiston, 1948.
  21. Mikesell, R. F.: “International Disequilibrium,” ,” American Economic Review, XXXIX, June 1949, ppp. 618-45
  22. Nurkse, Ragnar: “International Monetary Policy and the Search for economic Stability,” American Economic Review, XXXVII, May 1947, pp. 560-80.
  23. Polak, J. J.: “Exchange Depreciation and International Monetary Stability,” Review of Economics and Statistics, XXIX, Aug. 1947, pp. 173-83.
  24. Robertson, D. H.: “Britain and European Recovery,” Lloyds Bank Review, July 1949, pp. 1-13.
  25. Triffin, Robert: “National Central Banking and the International Economy,”; see also comments by G. Haberler and L. A. Metzler, Postwar Economic Studies, No. 7. Washington, D. C. 1947; and further comments by H. D. Henderson, T. Balogh, R. Harrod, and Joan Robinson, Review of Economic Studies, XIV, 1946-47, pp. 53-97.
  26. Williams, J. H.: “The Task of Economic Recovery,” Foreign Affairs, July 1948.
  27. _______________ “Europe After 1952: The Long-term Problem,” Foreign Affairs, April 1949.
  28. _______________ “The British Crisis. A Problem in Economic Statesmanship,” Foreign Affairs, October 1949.

 

II. Monetary and Fiscal Theory and Policy

Books

  1. American Economic Association (H. S. Ellis, ed.): A Survey of Contemporary Economics. Philadelphia, Blakiston, 1948.
  2. _______________ (W. Fellner and B. F. Haley, eds.): Readings in the Theory of Income Distribution.Philadelphia, Blakiston, 1946.
  3. _______________ (G. Haberler, ed.): Readings in Business Cycle Theory. Philadelphia, Blakiston, 1944.
  4. Fellner, William: Monetary Policies and Full Employment. Berkeley, University of California Press, 2nd, 1947.
  5. Haberler, G.: Prosperity and Depression. Geneva, United Nations, rev. ed., 1946.
  6. Hansen, A. H.: Fiscal Policy and Business Cycles. New York, Norton, 1941.
  7. _______________ Monetary Theory and Fiscal Policy, New York, McGraw Hill, 1949.
  8. Harris, S. E. (ed.): The New Economics, New York, Knopf, 1947.
  9. Harrod, R. F.: Towards a Dynamic Econmics, London, Macmillan, 1948.
  10. Hawtrey, R. O.: Currency and Credit, London, Longmans, 3rd, 1928.
  11. _______________ Capital and Employment, London, Longmans, 2nd
  12. _______________ The Art of Central Banking, London, Longmans, 1932.
  13. Hayek, F. A. von: Prices and Production. London, Routledge, 1935.
  14. Keynes, J. M.: A Tract on Monetary Reform, New York, Harcourt, Brace, 1924.
  15. _______________ A Treatise on Money(2 vols.). New York, Harcourt, Brace, 1930.
  16. _______________ The General Theory of Employment, Interest, and Money.New York, Harcourt, Brace, 1936.
  17. Klein, L. R.: The Keynesian Revolution. New York, Macmillan, 1946.
  18. Robertson, D. H.: Essays in Monetary Theroy.London, King, 1940.
  19. _______________ Money. London, Nisbet, rev. ed., 1948.
  20. Simons, H. C.: Economic Policy for a Free Society, Chicago, University of Chicago Press, 1948.
  21. Terborgh, George: The Bogey of Economic Maturity. Chicago, Machinery and Allied Products Institute, 1945.
  22. Wicksell, Knut: Interest and Prices. London, Macmillan, 1936.
  23. Wright, D. M. The Economics of Disturbance. New York, Macmillan, 1946.

Articles

  1. Burns, Arthur F.: “Economic Research and the Keynesian Thinking of Our Times,” (26thAnnual Report). New York, National Bureau of Economic Research, 1947.
  2. _______________ “Keynesian Economics Once Again,” Review of Economics and Statistics, XXIX, Nov. 1947, pp. 252-265.
  3. Clark, Colin: “Public Finance and Changes in the Value of Money,” Economic Journal, LV, Dec. 1945, pp. 371-89.
  4. Hayek, F. A. von: “The ‘Paradox’ of Saving,” Economica, XI, March 1931, pp. 125-69. (Reprinted as an Appendix in Profits, Interest and Investment, London, Routledge, 1939).
  5. Hicks, J. R.: “Mr. Keynes and the Classics: A Suggested Interpretation,” Econometrica, V, 1937 (Reprinted in Readings in the Theory of Income Distribution. Philadelphia, Blakiston, 1946).
  6. Kuznets, Simon: Book Review: “Fiscal Policy and Business Cycles” by A. H. Hansen, Review of Economics and Statistics, Feb. 1942, pp. 31-36.
  7. _______________ “Capital Formation, 1879-1938,” in Studies in Economics and Industrial Relations. Philadelphia, University of Pennsylvania Press, 1941.
  8. Mints, L. W. and others: “A Symposium on Fiscal and Monetary Policy,” Review of Economics and Statistics, XXVIII, May 1946, pp. 60-84.
  9. Modigliani, F.: “Liquidity Preference and the Theory of Interest,” Econometrica, XII, Jan. 1944, pp. 45-88.
  10. _______________ “Fluctuations in the Saving-income Ratio: A Problem in Economic Forecasting,” Studies in Income and Wealth, XI. New York, National Bureau of Economic Research, 1949.
  11. Tobin, James: “Liquidity Preference and Monetary Policy,” Review of Economics and Statistics, XXIX, May 1947, pp. 124-31.
  12. Wallich, H. C.: “Public Debt and Income Flow,” in Postwar Economic Studies, No. 3. Washington, D.C., Board of Governors of the Federal Reserve System, Dec. 1945, pp. 84-100.
  13. _______________ “The Changing Significance of the Interest Rate,” American Economic Review, XXXVI, Dec. 1946, pp. 761-87.
  14. Williams, John H.: “An Appraisal of Keynesian Economics,” American Economic Review, Supplement, XXXVIII, May 1948.
  15. Wright, D. M.: “The Future of Keynesian Economics,” American Economic Review, XXXV, June 1945, pp. 284-307.

 

III. Current Problems and Policies—Federal Reserve Policy and Debt Management

Book

  1. Homan, P. T. and F. Machlup (eds.): Financing American Prosperity. New York, Twentieth Century Fund, 1945.

Articles

  1. Carr, Hobart C.: “The Problem of Bank-held Government Debt,” American Economic Review, XXXVI, Dec. 1946, pp. 833-42.
  2. Chandler, L. V.: “Federal Reserve Policy and the Federal Debt,” American Economic Review, XXXIX, March 1949.
  3. Federal Reserve Board:
    1. Annual Reports for the years 1945-48.
    2. Postwar Economic Studies, No. 8, Nov. 1947.
  4. Ratchford, B. U. “The Economic and Monetary Effects of Public Debts,” Public Finance, [sic, “The Monetary Effects of Public Debts,” Openbare Financiën] No. 4, 1948 and No. 1, 1949.
  5. Seltzer, L. H.: “The Changed Environment of Monetary-banking Policy,” American Economic Review, XXXVI, May 1946.
  6. _______________ “Is a Rise in Interest Rates Desirable or Inevitable?” American Economic Review, XXXV, Dec. 1945, pp. 831-50.
  7. Sproul, Allan: “Monetary Management and Credit Control,” American Economic Review, XXXVII, June 1947, pp. 339-50.
  8. Symposium: “How to Manage the National Debt,” Review of Economics and Statistics, XXXI, Feb. 1949.
  9. Whittlesey, C. R.: “Federal Reserve Policy in Transition,” Quarterly Journal of Economics, LX, May 1946, pp. 340-50.

 

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003, Box 5, Folder “Economics, 1949-50 (3 of 3)”.

_____________________

1949-50
HARVARD UNIVERSITY
ECONOMICS 241
PRINCIPLES OF MONEY AND BANKING

Mid-Year Examination. January, 1950.

(Three Hours)

Discuss ONE question in EACH group.

I

(1) “Hawtrey was never a Keynesian, but Keynes was formerly a Hawtreyan.”
(2) The relation of Keynes’ income theory to the quantity theory of money.
(3) The propensity to consume.

 

II

(1) Fixed versus flexible exchange rates.
(2) Classical international trade theory and the problems of the postwar world.

 

III

(1) The sterling problem since the war.
(2) “Chronic dollar shortage.”
(3) Western European “integration.”
(4) Devaluation and European recovery.
(5) The Intra-European Payments Plan.
(6) Europe after 1952: the long-term recovery problem.

 

Source:  Harvard University Archives. Final Exams—Social Sciences, etc. Feb. 1950. (HUC 7000.38, 81 of 284).

_____________________

[PRINCIPLES OF MONEY AND BANKING]
Reading List
[Economics 241, Spring 1949-50]
[Professor Hansen]

  1. The Role of Money in Current World Developments
    1. Books
      1. Balogh, T., Dollar Crisis: Causes and Cure, (Blackwell), 1949.
      2. Busschau, W. J., The Measure of Gold, (Central New Agency, Ltd.) South Africa, 1949.
      3. Goldenweiser, E. A., Monetary Management, (McGraw-Hill), N.Y., 1949. Chapters IV and VIII.
      4. Harris, S. E., The New Economics, (Knopf), N.Y. 1947. Chapters 20-29.
      5. Harris, S. E., Foreign Economics Policy of the United States, (Harvard University Press), 1948, Chapters 18-25.
      6. Williams, John H., Postwar Monetary Plans, (Knopf), 1947 or English edition (Blackwell), 1949.
    2. Pamphlets
      1. Inflationary and Deflationary Tendencies, 1946-48(United Nations), Department of Economic Affairs, 1949.
      2. International Capital Movements during the Inter-war Period, (United Nations), Department of Economic Affairs, 1949.
    3. Articles
      1. Burns, A. R., Lutz, F. A., and Clough, S. B., “The European Program in Operation,” Proceedings of the Academy of Political Science, January 1950.
      2. Robbins, Lionel, “The Sterling Problem,” Lloyds Bank Review, October, 1949.
      3. Robertson, D. H., “Britain and European Recovery,” Lloydds Bank Review, July, 1949.
      4. Sayers, R. S. “Central Banking in the Light of Recent British and American Experience,”Quarterly Journal of Economics, May, 1949.
  2. Theory of Money, Liquidity Preference, Interest, Wages and Prices
    1. Books
      1. Clark, Kaldor, Smithies, et al., National and International Measures for Full Employment, (United Nations), Department of Economic Affairs, December 1949.
      2. Ellis, H. S., (ed.), Survey of Contemporary Economics, (Blakiston), Philadelphia, 1948, Chapter 2 “Employment Theory”, by Fellner.
      3. Fellner, William, Monetary Policies and Full Employment, Berkeley, 1946. Chapter 6, (pp. 174-209).
      4. Hansen, Alvin H.
        1. Economic Policy and Full Employment, (McGraw-Hill), 1947. Chapters 18, 19, and 22, (pp. 202-232, 261-287).
        2. Fiscal Policy and Business Cycles, (Norton), 1941. Chapters 1-5; 11-15; (pp. 13-105; 225-338).
        3. Monetary Theory and Fiscal Policy, (McGraw-Hill), 1949.
      5. Harris, S. E., (ed.), The New Economics, (Knopf), 1947. Part III (The General Theory: Five Views; Chapters XI-XV).
      6. Keynes, J. M., Monetary Reform, (Harcourt), 1924, pp. 81-95; pp. 152-191.
      7. Keynes, J. M., A Treatise on Money, (Harcourt), 1930, Chapters 9-13 and 30 (Volume I, pp. 123-220; Volume II, pp. 148-208).
      8. Keynes, J. M., General Theory of Employment, Interest and Money, (Harcourt), 1936, pp. 3-45; 61-65; 74-221; 245-271; 292-332; 372-384.
      9. Klein, Lawrence, The Keynesian Revolution, Chapters 1-3, (pp. 1-90) Macmillan, 1947.
      10. Marshall, Alfred, Money, Credit and Commerce, (Macmillan), 1923. Book I, Chapter IX, pp. 38-50.
      11. Robertson, D. H. Essays in Monetary Theory(King), 1940. Chapters 1, 6, 11; (pp. 1-38; 92-97; 113-153).
      12. Wicksell, K., Interest and Prices(Macmillan), 1936; Introduction by Bertil Ohlin; also Author’s Preface; Chapters 5, 7-8, 11; (pp. 38-50; 81-121; 165-177).
      13. Wicksell, K., Money: Lectures on Political Economy, Volume II, (Macmillan), 1935, Chapter IV (pp. 127-222).
      14. Income, Employment and Public Policy, (Norton), 1948, Chapter VI, “The Simple Mathematics of Income Determination,” by Paul Samuelson.
      15. Macmillan Report, Royal Commission on Finance and Industry, Cmd., 3897 (1931), Part I, Chapter 11, (pp. 92-105).
      16. The Economic Report of the President, January 1950.
    2. Articles
      1. Hansen, A. H., and Burns, Arthur F., “Keynesian Economics Once Again,” Review of Economics Statistics, Nov. 1947.
      2. Hansen, A. H., “The Robertsonian and Swedish Systems of Period Analysis,” Review of Economics and Statistics, Feb. 1950.
      3. Hicks, J. R., “Mr. Keynes and the Classics: A Suggested Interpretation,” Econometrica, April 1937.
      4. Lerner, A. P., “Interest and Theory: Supply and Demand for Loans or Supply and Demand for Cash,” Review of Economics and Statistics, May 1944.
      5. Modigliani, F., “Liquidity Preferences and the Theory of Interest and Money,” Econometrica, January 1944.
      6. Mints, Hansen, Ellis, Lerner, Kalecki, “A Symposium on Fiscal and Monetary Policy,” Review of Economic Statistics, May 1946.
      7. Scott, Ira O. Jr., “Professor Leontief on Lord Keynes,” and “Comments” by Professors Leontief and Haberler, Quarterly Journal of Economics, November, 1949.
      8. Simons, H. C., “Debt Policy and Banking Policy,” Review of Economic Statistics, May 1946.
      9. Tobin, James, “Liquidity Preference and Monetary Policy,” The Review of Economic Statistics, May 1947.
      10. Williams, John H., “An Appraisal of Keynesian Economics,” American Economic Review, Papers and Proceedings, May 1948, pp. 273-290.

 

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003, Box 5, Folder “Economics, 1949-50 (3 of 3)”.

_____________________

1949-50
HARVARD UNIVERSITY
ECONOMICS 241

Principles of Money and Banking
Final Examination (June, 1950)

(Three Hours)

Answer any FOUR questions.

I.

Discuss:

(a) the causes of the increase in the quantity of money (currency and deposits) in:

(1) the Thirties,
(2) the Second World War; and

(b) appraise the role of this increase:

(1) in the rise in income from 1933 to 1937; and
(2) in war-time financing.

II.

Compare the monetary theories of Wicksell and Marshall (or more broadly the Cambridge cash-balance approach).

III.

“An increase in the quantity of money is a necessary but not sufficient condition for the expansion of income and employment.” Show carefully why you agree, partially agree, or disagree in whole or in part with this statement. Give a technical discussion in terms of modern monetary theory.

IV.

Discuss and evaluate Treasury and Federal Reserve policies after 1945 with respect to

(a) inflation,
(b) interest rates,
(c) debt management,
(d) full employment.

V.

Discuss the changing role of Central Banking:

(a) in the 19th century,
(b) in the nineteen-twenties, and
(c) following the Second World War.

Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001, Bound Volume Final Exams—Social Sciences June 1940 (HUC 7000.28, 84 of 284), Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …,Military Science, Naval Science. June, 1950.

Image Source: Alvin H. Hansen and John H. Williams in Harvard Class Album 1942.