Econ 654 Article Critique Instructions

     Recall that one of the requirements for Econ 654 (worth 30
points) is for you to prepare a written "referee report" (review
and critique) of an article (or articles) in a selected area
related to the topics covered in Econ 654: Financial Markets and
Monetary Economics.

     Your critique should consist of the following five parts,
with the first four parts totalling about ten pages in length:

(1) A short initial summary of what the article is attempting
    to accomplish (its purported contribution to the literature);

(2) a more detailed discussion of what the article actually
    accomplishes;

(3) a critique by you of what has been accomplished;

(4) a list of references to the works of other authors that you
    have made use of in your critique;

(5) an attached copy of the article you are critiquing.

     You should decide on a critique article by the end of March
at the latest.  Please consult with me about this decision to
ensure the article is suitable with regard to both topic and level
of analysis.

     You should plan on having a preliminary version of your
critique ready to hand out and present in class sometime during
the last two weeks of classes.  A final version of your critique
should be handed in for grading by the last day of classes.
Critiques handed in later than this date may result in an
incomplete and/or reduced grade.

    A good place to start researching possible critique articles is
the list of recommended readings on the Econ 654 syllabus as well as
the readings referred to in the assigned survey readings by Gertler,
Bhattacharya and Thakor, Williamson, and Hoover.  [Naturally,
articles assigned as required readings for either Econ 653 or Econ
654 cannot serve as critique articles.]

     For example, appended below is a list of articles that could
serve as a basis for a critique.  [Some of the articles below are
largely expository and would need to be augmented by a second, more
analytically concrete article in the same topic area to be suitable
for a critique.]


SOME SUGGESTED ARTICLES (ALPHABETICALLY BY AUTHOR):

Backus, D. and J. Driffill, "Inflation and Reputation,"
American Economic Review 75 (June 1985), 530-538.

Bernanke, B., and M. Gertler, "Agency Costs, Net Worth, and
Business Fluctuations, American Economic Review (March 1989),
14-31.

Bester, H., "Screening vs. Rationing in Credit Markets with
Imperfect Information," American Economic Review (September
1985), pp. 850-855.

Boyd, J. H., and E. Prescott, "Financial Intermediary-Coalitions,"
Journal of Economic Theory 38 (April 1986), 211-232.

Bullow, J., and K. Rogoff, "Sovereign Debt: Is to Forgive to
Forget?," American Economic Review (March 1989), 43-50.

Cukierman, Alex, #Central Bank Strategy, Credibility, and
Independence#, MIT Press, 1992.

Dean, J. W, and I. H. Giddy, "Old and New Proposals for
International Banking Safety," pp. 342-355 in T. Havrilesky,
R. Schweitzer, and J. T. Boorman, eds., The Dynamics of Banking,
Harlan Davidson, Inc., 1985.

DeLong, J. B., A. Shleifer, L. H. Summers, and R. J. Waldmann,
"Noise Trader Risk in Financial Markets," Journal of Political
Economy 98 (1990), 703-737.

Dewatripont, M., and J. Tirole, #The Prudential Regulation of
Banks#, The MIT Press, Cambridge, MA, 1994.

Dornbusch, R., and A. Giovannini, "Monetary Policy in the Open
Economy," Chapter 23 in the Handbook of Monetary Economics, ed. by
B. M. Friedman and F. H. Hahn, North-Holland, New York, 1990.

Goodhart, C., "Game Theory for Central Bankers: A Report to the
Governor of the Bank of England," Journal of Economic Literature
32 (March 1994), 101-114.

Gorton, G., "Banking Theory and Free Banking History: A Review
Essay," Journal of Monetary Economics 17 (1985), pp. 267-276.

Jacklin, C., "Demand Deposits, Trading Restrictions, and Risk
Sharing," in E. C. Prescott and N. Wallace, eds., Contractual
Arrangements for Intertemporal Trade, Minnesota Studies in
Macroeconomics, Vol. 1, University of Minnesota Press, 1987.

Jacklin, C., and S. Bhattacharya, "Distinguishing Panics and
Information-Based Bank Runs:  Welfare and Policy Implications,"
Journal of Political Economy 96 (June 1988), 568-592.

Kahn, J., "Another Look at Free Banking in the United States,"
American Economic Review 75 (September 1985).

McKinnon, R. I., "Monetary and Exchange Rate Policies for
International Financial Stability: A Proposal," Journal of Economic
Perspectives 2 (Winter 1988), pp. 83-103, followed by comments by
R. Dornbusch, pp. 105-112, and J. Williamson, pp. 113-119.

Pardee, S. E., "Internationalization of Financial Markets," Economic
Review, Federal Reserve Bank of Kansas City, Feb. 1987, pp. 3-7.

Rolnick, A., and W. Weber, "The Causes of Free Bank Failures: A
Detailed Examination," Journal of Monetary Economics 14 (1984),
267-292.

Shubik, M., "The Game Theoretic Approach to the Theory of Money
and Financial Institutions," Chapter 5 in Handbook of Monetary
Economics, ed. by B. M. Friedman and F. H. Hahn, North-Holland,
N.Y., 1990.

Smith, Vernon G. Suchanek, and A. Williams, "Bubbles, Crashes, and
Endogenous Expectations in Experimental Spot Asset Markets,"
Econometrica 56 (1988), 1119-1151.

Stockman, A., "On the Role of International Financial Markets and
Their Relevance for Policy," Journal of Money, Credit, and
Banking 20 (August 1988, Part 2), pp. 531-558, followed by
comments by P. Kehoe and J. David Germany.

Summers, L., "Does the Stock Market Rationally Reflect Fundamental
Values?" Journal of Finance (1986), 591-601.

Weil, P., "Confidence and the Real Value of Money in an
Overlapping Generations Economy," Quarterly Journal of Economics
102 (February 1987), pp. 1-22.

Williamson, S., "Costly Monitoring, Financial Intermediation, and
Equilibrium Credit Rationing," Journal of Monetary Economics 18
(1986), pp. 159-179.

Williamson, S., "Financial Intermediation, Business Failures, and
Real Business Cycles," Journal of Political Economy (December
1987), 1196-1216.

Williamson, S., "Liquidity, Banking, and Bank Failures,"
International Economic Review 29 (1988), pp. 25-43.