These questions are each worth 60 points and refer to Mehrling’s book, The New Lombard Street.
In Ch. 4, starting p. 79, Mehrling has a section titled “Brave New World.” The discussion started here runs through the following section, “From Modern Finance to Modern Macroeconomics,” which runs till the end of the chapter on p. 91. These pages in the book are also covered in my slides 140-151. There are also Mehrling videos to accompany linked to for class on March 22.
The assignment here is to explain the financial innovations that Mehrling is discussing and their significance for Modern Finance (e.g., CAPM) and Mehrling’s critique that they’ve ignored liquidity.
In Ch. 6, Mehrling discusses the Fed’s (and Treasury’s) reactions to the financial crisis. You will want to read the entire chapter (much of which will review shadow banking, but incorporate the Fed’s response to the crisis, so it’s useful), but the assignment starts on p. 123 with the section “A Stress Test of Moultin-Martin” and runs through p. 131. My PPTs cover this in slides 195-210. There are Mehrling videos related to this linked to for the class on April 5.
The assignment is to explain Mehrling’s perspective on why the shadow banking system collapsed.
Use essay form (intro/body paragraphs/conclusion)
sources depand on what you used from what i provide so you can go with less than 5 or more
Link to videos
Related to chapter 4 question
• Perry Mehrling
o Lecture 8-7 (4.5 minutes) https://youtu.be/8WBk34CHXKw
o Lecture 8-8 (9 minutes) https://youtu.be/7JXyFsCl4D8
o Lecture 8-9 (3 minutes) https://youtu.be/iLSolU5-CSY
o Lecture 19-2 (8 minutes) https://youtu.be/dlaIO_35Vp8
o Lecture 19-3 (11 minutes) https://youtu.be/snG05OFavjU
o Lecture 19-4 (10.5 minutes) https://youtu.be/nCrxDIuCZ2Y
o Lecture 19-6 (9 minutes) https://youtu.be/HjeQRfq8WE4
o Lecture 19-7 (6 minutes) https://youtu.be/T9TfVmhp3EY
o Lecture 19-8 (5 minutes) https://youtu.be/0WiQpgTIvRo
o Lecture 19-9 (7 minutes) https://youtu.be/RYsIpeGpQms
Related to chapter 6 question
• Perry Mehrling
o Lecture 12-2 (4 minutes) https://youtu.be/5oriNHybOsc
o Lecture 12-3 (7 minutes) https://youtu.be/PZStGPgCWKk
o Lecture 12-4 (7 minutes) https://youtu.be/SJt4soq71HA
o Lecture 12-5 (10 minutes) https://youtu.be/N8r9LGsysjE
o Lecture 12-6 (8 minutes) https://youtu.be/8qGW896JlHg
o Lecture 12-7 (4.5 minutes) https://youtu.be/808nhtHPTac
o Lecture 12-8 (9 minutes) https://youtu.be/L_2FGkdSzgE
o Lecture 12-9 (16 minutes) https://youtu.be/xQ0HUa7FQwE