Sunday, April 5, 2009

Intermediate Macro Blog

I've started my Spring teaching. As a byproduct I'm using a blog for the Intermediate Macro class (undergrad). I start off most classes by going over data relevant to the current crisis. While the data is not directly housing related, I'll post links to them since I think most people will find them interesting.

So far I've posted two entries.

The first covers the fall and subsequent (and quite recent) rapid increase in savings. See "The Trainwreck".

The second post covers the changes in Households' wealth and debt from the Fed's Flow of Funds. See "Household Debt Leading up to the Crisis." The data shows quite clearly the folly in the logic a lot of people (myself included) in thinking that the high levels of mortgage debt to income were justified by the high house values--we had seen that story before and high mortgage debt to income leads to high debt to assets, just with a lag.

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