Title: Is Macroeconomics Broken? An Analysis of the 2008 Financial Crisis
Abstract: The following paper examines the 2008 financial crisis in the scope of predictive models utilized by central banks, such as the Dynamic Stochastic General Equilibrium (DSGE). The history of macroeconomic forecasting by monetary policymakers is studied as well as the introduction of models post-financial crisis. Common criticisms of DSGE models are discussed while proposing solutions and evaluating current modifications.
Title: The Economic Effects of a Nation Wide Cap and Trade Regulatory System
Abstract: Previous studies lay out the efficiencies of broad based nationwide cap and trade regulatory systems, compared to other regulatory systems. Environmental regulations and cap and trade systems are shown to have a negative impact on economic activity. Building upon this previous literature, the economic effects of a nationwide cap and trade regulatory system, consistent with the emission targets of the Paris Climate accord, are estimated; Gregory Mankiw’s Dynamic Aggregate Supply-Aggregate Demand model estimates the economic effects, through a supply shock. The estimated supply shock reveals a 0.22% to 3.1% decrease in output, resulting from the implementation of a national cap and trade policy. Additionally, this study notes other factors reducing the economic impact a national cap and trade regulatory system.