Wednesday, August 8, 2007

Reading Challenge XII

Today's selection: Understanding Global Imbalances

Commentary: Well, I didn't previously understand global imbalances. In fact, I really understand very little about trade, monetary policy, securities, or even savings and investment. After reading this paper, I feel like my understanding has not improved.

I'm fairly sure it's not complete, there's no abstract, and I couldn't tell you what the thesis was, though it's basically arguing that demographic reasons constitute a fine explanation for the US current account deficit, and these demographics mean the deficit is sustainable.

Since I can't formulate a cognet position on said deficit, I'm not really qualified to dissect the paper, but it certainly didn't convince me.

Digression: Of course, maybe I'm just depressed. I was looking around in my continuing task to gather information relevant to graduate admissions and stumbled upon Cornell's test for mathematical proficiency. Basically, passing it out of math camp allows one to skip a mathematical economics course in first-year Ph.D. studies. I could not pass it. In fact, I do not feel confident in answering any part of any question therein. (My mathematical economics teacher would crucify me, especially after giving me good marks twice. Not to mention those nine math courses I took.)

Conclusion: Studying for the GRE rots one's brain, and I may have to admit that I need to do an M.A. first.

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