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Greg Mankiw

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Greg Mankiw
21st Chair of theCouncil of Economic Advisers
In office
May 29, 2003 – February 18, 2005
PresidentGeorge W. Bush
Preceded byGlenn Hubbard
Succeeded byHarvey Rosen
Personal details
Born
Nicholas Gregory Mankiw

(1958-02-03)February 3, 1958(age 66)
Trenton,New Jersey,U.S.
Political partyRepublican(Before 2019)
Independent(2019–present)
SpouseDeb Roloff
EducationPrinceton University(BA)
Massachusetts Institute of Technology(MA,PhD)
Harvard University
Academic career
FieldMacroeconomics
School or
tradition
New Keynesian economics[1]
Doctoral
advisor
Stanley Fischer[2]
Doctoral
students
Miles Kimball
Xavier Sala-i-Martin[3]
Karen Dynan
Jason Furman
Ricardo Reis
InformationatIDEAS / RePEc

Nicholas Gregory Mankiw(/ˈmænkj/;born February 3, 1958) is an Americanmacroeconomistwho is currently the Robert M. Beren Professor ofEconomicsatHarvard University.[4]Mankiw is best known in academia for his work onNew Keynesian economics.[5]

Mankiw has written widely on economics and economic policy. As of February 2020,theRePEcoverall ranking based on academic publications, citations, and related metrics put him as the 45th most influential economist in the world, out of nearly 50,000 registered authors.[6]He was the 11th most cited economist and the 9th most productive research economist as measured by theh-index.[7]In addition, Mankiw is the author of several best-selling textbooks, writes a popular blog,[8]and has since 2007 written approximately monthly for the Sunday business section ofThe New York Times.[9]According to theOpen Syllabus Project,Mankiw is the most frequently cited author on college syllabi for economics courses.[10]

Mankiw is a conservative,[11][12][13][14]and has been an economic adviser to severalRepublicanpoliticians. From 2003 to 2005, Mankiw was Chairman of theCouncil of Economic Advisersunder PresidentGeorge W. Bush.In 2006, he became an economic adviser toMitt Romney,and worked with Romney during his presidential campaigns in 2008 and 2012. In October 2019, he announced that he was no longer a Republican because of his discontent with PresidentDonald Trumpand theRepublican Party.[15]

Early life and education[edit]

Mankiw was born inTrenton, New Jersey.His grandparents were allUkrainians.[16][17][18][19]He grew up inCranford, New Jersey,where he worked in Republican politics,[20]and graduated from thePingry Schoolin 1976.[21]In 1975, he studiedastrophysicsat theSummer Science Program.[22]He graduated fromPrinceton Universitysumma cum laudein 1980 with aBachelor of Artsineconomics.[23]Mankiw completed a 72-page long senior thesis titled "Understanding Employment Fluctuation".[24]At Princeton, Mankiw was classmates with the economistDavid Romer,who would later become one of his coauthors, and was roommates with the playwrightRichard Greenberg.

After college, Mankiw spent a year working on hisdoctoral degreeat theMassachusetts Institute of Technology(MIT) and a subsequent year studying atHarvard Law School.He worked as a staff economist for theCouncil of Economic Advisersfrom 1982 to 1983, which he went on to chair two decades later. After leaving the council, he earned his PhD in economics from MIT in 1984 under the supervision ofStanley Fischer.He returned to Harvard Law School for a year, but having completed his PhD and realizing that he was better at economics,[25]he left to teach at MIT for a year, and then became anassistant professorof economics atHarvard Universityin 1985. He was promoted toprofessorin 1987, at the age of 29.

Academic writings[edit]

Mankiw is considered aNew Keynesian economist,[26][27]though at least one financial journalist states that he resists such easy categorisation.[28]Mankiw did important work onmenu costs,which are a source ofprice stickiness.His paper "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly", which was published in theQuarterly Journal of Economicsin 1985, compared a firm's private incentive to adjust prices because of a shock to nominal aggregate demand to that decision's the social welfare implications. The paper concluded that expansion in aggregate demand may either increase welfare or reduce it, but the welfare reduction is never greater than the menu cost. A contraction in aggregate demand, however, reduces welfare, possibly in an amount much larger than the menu cost. In other words, from a social planner's point of view, prices may be stuck too high but never too low.[29]The paper was a building block for work byOlivier BlanchardandNobuhiro Kiyotaki[30]on aggregate-demand externalities and for work byLaurence M. Balland David Romer[31]on the interaction between real and nominal rigidities.

In 2002, Mankiw andRicardo Reisproposed an alternative to the widely-used New KeynesianPhillips curvethat is based on the slow diffusion of information among the population of price setters. Their sticky-information model displays three related properties that are more consistent with accepted views about the effects of monetary policy. Firstly, disinflations are always contractionary, though announced disinflations are less contractionary than surprise ones. Secondly, monetary policy shocks have their maximum impact on inflation with a substantial delay. Thirdly, the change in inflation is positively correlated with the level of economic activity.[32]

A related 2003 article by Mankiw, Reis, andJustin Wolfersanalyzed data on inflation expectations and documented substantial disagreement among both consumers and professional economists about expected future inflation. That disagreement is shown to vary over time and to move with inflation, the absolute value of the change in inflation, and relative price variability. The paper argues that a satisfactory model of economic dynamics must address those business-cycle moments. Noting that most macroeconomic models do not endogenously generate disagreement, they show that a sticky-information model broadly matches many of those facts. The model is also consistent with other observed departures of inflation expectations from full rationality, including autocorrelated forecast errors and insufficient sensitivity to recent macroeconomic news.[33]

Mankiw has also written several papers on the empirical analysis of consumer behavior, often emphasizing the role of heterogeneity. An article with John Campbell in 1989 found that the aggregate consumption data are best described by a model in which about half of consumers obey thepermanent income hypothesis,and half simply consume their current income, which is sometimes called hand-to-mouth behavior.[34]An article with Stephen Zeldes in 1991 found the consumption of stockholders to covary more strongly with the stock market than the consumption of nonstockholders did. That provided a possible explanation for theequity premium puzzle.[35]

Mankiw's most widely-cited paper is "A Contribution to the Empirics of Economic Growth", which was coauthored withDavid Romerand David Weil and published in theQuarterly Journal of Economicsin 1992. The paper argues that theSolow growth model,once augmented to include a role for human capital, explains reasonably well international differences in standards of living. According toGoogle Scholar,it has been cited more than 25,000 times, which makes it one of the most cited articles in the field of economics.

Beyond his work in macroeconomics, Mankiw has also written several other notable papers. In 1989, he coauthored a paper with David Weil that examined the demographic determinants of housing demand and predicted that the aging ofbaby boomerswould undermine the housing market in the 1990s and 2000s.[36]In 1986, he coauthored a paper withMichael Whinstonin microeconomic theory that showed that under imperfect competition, entry tends to be excessive in homogeneous-goods industries because entrants fail to take into account the business-stealing externality that they impose on their rivals. When goods are heterogeneous, it is ambiguous whether free entry produces too many or too few firms because of offsetting business-stealing and product-variety externalities.[37]

Textbooks[edit]

Mankiw has written two popular college-level textbooks: the intermediate-levelMacroeconomics(now in its 12th edition, published byWorth Publishers) and the more famous introductory textPrinciples of Economics(now in its 10th edition, published byCengage). Subsets of chapters from the latter book are sold under the titlesPrinciples of Microeconomics,Principles of Macroeconomics,Brief Principles of Macroeconomics,andEssentials of Economics.The book was signed for a record advance.The New York Timesreported in 1995 that Mankiw "was offered a $1.4 million advance by Harcourt Brace in Fort Worth to write a basic economics textbook. That's about three times as big as any other in the college textbook market and rivals those of all but a few celebrity authors."[38]

When the first edition of thePrinciplesbook was published in 1997,The Economistmagazine stated,[39]

Mr. Mankiw has produced something long overdue: an accessible introduction to modern economics. By writing more in the style of a magazine than a stodgy textbook and explaining even complex ideas in an intuitive, concise way, he will leave few students bored or bewildered.... Most refreshing, though, is the book's even-handedness. Mr Mankiw seems to revel in setting out how different schools of thought have contributed to economists' current state of knowledge.

Since then, more than one million copies have been sold, and Mankiw has received an estimated $42 million in royalties from the book, which is priced at $280 per copy.[40]

Other career activities[edit]

In May 2003, PresidentGeorge W. Bushappointed Mankiw as Chairman of theCouncil of Economic Advisers.Mankiw served in that post from 2003 to 2005 and was followed byHarvey S. Rosenand thenBen Bernanke.As chairman, Mankiw was part of aGeorge W. Bush administrationeffort seeking greater oversight of twogovernment-sponsored enterprises:Fannie MaeandFreddie Mac.In a November 2003 speech to a conference of bank supervisors,[41]he said:

The enormous size of the mortgage-backed securities market means that any problems at the GSEs matter for the financial system as a whole. This risk is a systemic issue also because the debt obligations of the housing GSEs are widely held by other financial institutions. The importance of GSE debt in the portfolios of other financial entities means that even a small mistake in GSE risk management could have ripple effects throughout the financial system.

The proposed regulatory reforms were passed into law only years later, when thefinancial crisis of 2007–2008was well underway.

After leaving the CEA, Mankiw resumed teaching at Harvard and took over one of the most popular classes atHarvard College,the introductory economics course Ec 10, fromMartin Feldstein.[42]He has become an influential figure in theblogosphereand online journalism since launching his eponymousblog.The blog,[8]which was originally designed to assist his Ec10 students, has gained a readership that extends far beyond students of introductory economics.[43]Subtitled "Random Observations for Students of Economics," it was ranked the top economics blog by US economics professors in a 2011 survey.[44]

In November 2006, Mankiw became an official economic adviser toMassachusettsGovernorMitt Romney'spolitical action committee,Commonwealth PAC.[45]In 2007, he signed on as an economic adviser toRomney's presidential campaign.[46]He continued in that role duringRomey's 2012 presidential bid.[47][48]

From 2012 to 2015, Mankiw served as chairman of the Harvard economics department.[49]

In February 2013, Mankiw publicly supportedsame-sex marriage in the United Statesin anamicus briefsubmitted to theUS Supreme Court.[50]

Mankiw is a trustee of theUrban Institute.[51]In 2016, he became a member of the US Partnership on Mobility from Poverty, an effort funded by theBill and Melinda Gates Foundationand run by the Urban Institute. The group of 24 scholars and activists is "a new collaborative aimed at discovering permanent ladders of mobility for the poor. The partnership will identify breakthrough solutions that can be put into action by philanthropy, practitioners, and the public and private sectors."[52]

2004 Economic Report of the President[edit]

Several controversies arose from CEA's February 2004 Economic Report of the President. In a press conference, Mankiw spoke of the gains fromfree tradeand noted that theoutsourcingof jobs by US companies is "probably a plus for the economy in the long run."[53][54]This reflected mainstream economic analysis, but was criticized by many politicians,[55][56]who drew a link between outsourcing and the slow recovery of the US labor market in early 2004.[56]

Controversy also arose from a rhetorical question posed by the report and repeated by Mankiw in a speech about the report:[57]"when a fast-food restaurant sells a hamburger, is it providing a service or combining inputs to manufacture a product?" He intended to point out that the distinction between manufacturing jobs and service industry jobs is somewhat arbitrary and so is a poor basis for policy. Even though the issue was not raised in the report, a news account led to criticism that the administration was seeking to cover up job losses in manufacturing by redefining jobs like cooking hamburgers as manufacturing.[58]

2011 student walkout[edit]

On November 2, 2011, a number of students in Mankiw's Economics 10 class walked out of his lecture. Several dozen of the 750 students participated.[59][60]Before leaving, they handed Mankiw an open letter critical of his course that stated in part:

we found a course that espouses a specific—and limited—view of economics that we believe perpetuates problematic and inefficient systems of economic inequality in our society today.... Economics 10 makes it difficult for subsequent economics courses to teach effectively as it offers only one heavily skewed perspective rather than a solid grounding on which other courses can expand.... Harvard graduates play major roles in the financial institutions and in shaping public policy around the world. If Harvard fails to equip its students with a broad and critical understanding of economics, their actions are likely to harm theglobal financial system.The last five years of economic turmoil have been proof enough of this.[61]

The students concluded their letter by stating that they would instead be attending the underwayOccupy Bostondemonstration. Counterprotesters showed up in that class, and Mankiw replied to his students in an article inThe New York Times.[62]An editorial in the student-runHarvard Crimsoncondemned the protest[63]by stating:

The truth is that Ec 10, a requirement for economics concentrators, provides a necessary academic grounding for the study of economics as a social science. Professor Mankiw's curriculum sticks to the basics of economic theory without straying into partisan debate. We struggle to believe that we must defend his textbook, much maligned by the protesters, which is both peer reviewed and widely used.... Supply-and-demand economics is a popular idea of how society is organized, and Mankiw's Ec 10 never presents itself as more than that.

2016 opposition to Donald Trump[edit]

In August 2016, Mankiw expressed opposition to the election ofDonald Trumpto the presidency.[64]On his blog, he wrote:[65]

Mr. Trump has not laid out a coherent economic worldview, but one recurrent theme is hostility to a free and open system of international trade. From my perspective as an economics policy wonk, that by itself is disqualifying. And then there are issues of temperament.... he does not show the admirable disposition that I saw in previous presidents and presidential candidates I have had the honor to work for.

2019 departure from Republican Party[edit]

On October 28, 2019, Mankiw left the Republican Party and registered as an independent. He cited his disappointment in the party's overlooking of President Trump's misdeeds and a wish to vote in either primary in his home state, Massachusetts.[15]

Advocacy of Pigovian taxation[edit]

Throughout his career, Mankiw has advocated the implementation ofPigovian taxes,such as a revenue-neutralcarbon tax,to correct forexternalities.[66][67][68][69]Toward that end, he founded on his blog the informalPigou Club.[70]In 2016, he had a part in theLeonardo DiCapriofilmBefore the Flood,a documentary about global climate change, and was interviewed in the film on carbon taxation.[71]In 2017, Mankiw was one of eight "Republican elder statesmen" to propose for conservatives embrace of a policy of carbon taxes, with all revenue rebated as lump-sum dividends. The group also includedJames A. Baker III,Martin S. Feldstein,Henry M. Paulson Jr.,andGeorge P. Shultz.[72][73]

Honors and awards[edit]

In popular culture[edit]

Mankiw is referenced in the 2011 filmElles,which shows an episode in the life of Anne (Juliette Binoche), a journalist writing an article about female student prostitution. When asked about her classes, one of the students, thePolishimmigrant Alicja (Joanna Kulig), replies that she has been studying theneoliberaleconomist Greg Mankiw.[82]

In addition, Mankiw is briefly mentioned in the novelsNineteen MinutesbyJodi Picoult[83]andThe Female PersuasionbyMeg Wolitzer.[84]

On February 18, 2019, Mankiw was mentioned in a clue on the television showJeopardy!:[85]"N. Gregory Mankiw has penned texts on these 'large' and 'small' fields, relating to how governments spend & how you do."

Personal life[edit]

Mankiw lives in Massachusetts with his wife Deborah, to whom he has been married since 1984.[86]They have three children, Catherine, Nicholas and Peter, and a dog, Tobin.

Selected bibliography[edit]

  • N. Gregory Mankiw (1985). "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly".Quarterly Journal of Economics.100(2): 529–537.doi:10.2307/1885395.JSTOR1885395.
  • N. Gregory Mankiw; David Romer; David Weil (1992). "A Contribution to the Empirics of Economic Growth".Quarterly Journal of Economics.107(2): 407–437.CiteSeerX10.1.1.335.6159.doi:10.2307/2118477.JSTOR2118477.S2CID1369978.
  • N. Gregory Mankiw (1998).Principles of Economics(1st ed.). Fort Worth, Texas:Dryden Press.ISBN978-0-03098238-5.
  • N. Gregory Mankiw (2010).Macroeconomics(7th ed.). Worth Publishers.ISBN978-1-4292-1887-0.

References[edit]

  1. ^"Stanley Fischer saved Israel from the Great Recession. Now Janet Yellen wants to help him save the U.S."The Washington Post.13 January 2014.Retrieved9 September2023.
  2. ^"A Profile of Stanley Fischer".GREG MANKIW'S BLOG. September 19, 2016.
  3. ^"Greg Mankiw's Blog: A Profile of Stanley Fischer".
  4. ^"Biography: N. Gregory Mankiw".Harvard University.Retrieved30 September2021.
  5. ^Mankiw, N. Gregory."New Keynesian Economics".Econlib.Retrieved30 September2021.
  6. ^"Economist Rankings | IDEAS/RePEc".ideas.repec.org.Retrieved2020-03-16.
  7. ^"Economist Rankings at IDEAS".ideas.repec.org.
  8. ^abFor Greg Mankiw's blog, see"GREG MANKIW'S BLOG / Random Observations for Students of Economics".
  9. ^"Columns and Talks".
  10. ^"Open Syllabus: Explorer".Archived fromthe originalon 2022-09-21.Retrieved2020-01-24.
  11. ^"Let's pick on Greg Mankiw".The Economist.March 10, 2009.
  12. ^Rampell, Catherine(August 29, 2011). "Alan Krueger's New White House Job".The New York Times.
  13. ^Chandler, Clay (October 2, 1994). "From the GOP, Old Lines for New Times; On Tax Cuts, Capital Gains, the Budget and Other Issues, Republicans Return to an '80s Hit".The Washington Post.
  14. ^Maggs, John (October 11, 2003). "Deconstructing the Deficit".National Journal.
  15. ^ab"I am no longer a Republican".Greg Mankiw’s Blog.
  16. ^"N. Gregory Mankiw: America's Economy and the Case for Free Markets".
  17. ^"N. Gregory Mankiw Transcript - Conversations with Bill Kristol".
  18. ^"Greg Mankiw's Blog: My Family's Flatware".gregmankiw.blogspot.ca.
  19. ^http://scholar.harvard.edu/files/mankiw/files/confirm.pdf[bare URL PDF]
  20. ^Andrews, Edmund L."Economics Adviser Learns the Principles of Politics",The New York Times,February 26, 2004. Accessed September 19, 2019. "He describes himself as a lifelong Republican, which sets him apart from many Harvard colleagues. He distributed campaign literature for Richard Nixon in the early 1970's, and he grew up in Cranford, a fairly affluent suburb in New Jersey, the son of an engineer and a teacher."
  21. ^CV for N. Gregory Mankiw,National Bureau of Economic Research.Accessed September 19, 2019. "The Pingry School. Graduated, 1976."
  22. ^"New Mexico Tech News".New Mexico Tech. June 17, 2004. Archived fromthe originalon May 28, 2010.RetrievedNovember 29,2010.
  23. ^Andres, Edmund L."A Salesman for Bush's Tax Plan Who Has Belittled Similar Ideas",The New York Times,February 28, 2003.
  24. ^Mankiw, Nicholas Gregory. Princeton University. Department of Economics (ed.)."Understanding Employment Fluctuation".{{cite journal}}:Cite journal requires|journal=(help)
  25. ^"Greg Mankiw's Blog: JD vs PhD: My Story".
  26. ^Mankiw, N. Gregory (1989-08-01)."Real Business Cycles: A New Keynesian Perspective".Journal of Economic Perspectives.3(3): 79–90.doi:10.1257/jep.3.3.79.ISSN0895-3309.
  27. ^Matthews, Dylan (January 13, 2014)."Stanley Fischer saved Israel from the Great Recession. Now Janet Yellen wants to help him save the U.S."The Washington Post.
  28. ^Smith, Noah (13 January 2017). "Tribal warfare in economics a thing of the past".The Australian Financial Review.Fairfax Media.Bloomberg.[Joseph] Stiglitz is a hero to the left, while [Greg] Mankiw is a small-government conservative.
  29. ^"Mankiw's menu cost model - Policonomics".policonomics.4 October 2012.
  30. ^Blanchard, Olivier Jean; Kiyotaki, Nobuhiro (1987). "Monopolistic Competition and the Effects of Aggregate Demand".The American Economic Review.77(4): 647–666.JSTOR1814537.
  31. ^Ball, Laurence; Romer, David (1990)."Real Rigidities and the Non-Neutrality of Money"(PDF).The Review of Economic Studies.57(2): 183–203.doi:10.2307/2297377.JSTOR2297377.
  32. ^Mankiw, N. Gregory; Reis, Ricardo (1 November 2002)."Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve"(PDF).The Quarterly Journal of Economics.117(4): 1295–1328.doi:10.1162/003355302320935034.S2CID1146949.
  33. ^https:// nber.org/chapters/c11444.pdf[bare URL PDF]
  34. ^https:// nber.org/chapters/c10965.pdf[bare URL PDF]
  35. ^Mankiw, N. Gregory; Zeldes, Stephen P. (1991). "The consumption of stockholders and nonstockholders".Journal of Financial Economics.29(1): 97–112.CiteSeerX10.1.1.364.2730.doi:10.1016/0304-405X(91)90015-C.S2CID3084416.
  36. ^Mankiw, N. Gregory; Weil, David N. (1990)."The Baby Boom, The Baby Bust, and the Housing Market"(PDF).NBER Working Paper.W2794 (2): 235–58.doi:10.1016/0166-0462(89)90005-7.PMID12283640.SSRN245837.
  37. ^http:// nuff.ox.ac.uk/users/klemperer/IO_Files/free%20entry%20%20Mankiw%20and%20Whinston.pdf[bare URL PDF]
  38. ^Nasar, Sylvia (14 March 1995)."A Hard Act to Follow? Here Goes".The New York Times.
  39. ^"Play it again, Samuelson".The Economist.1997-08-21.
  40. ^Read, Richard (February 12, 2015)."A $280 college textbook busts budgets, but Harvard author Gregory Mankiw defends royalties".OregonLive.Retrieved2015-12-17.
  41. ^"Remarks at the Conference of State Bank Supervisors (Text Only)".whitehouse.gov– viaNational Archives.
  42. ^"Harvard Course Catalog".Archived fromthe originalon 29 May 2014.Retrieved18 February2013.
  43. ^"The invisible hand on the keyboard".The Economist.August 3, 2006.
  44. ^Davis, William L, Bob Figgins, David Hedengren, and Daniel B. Klein. "Economic Professors' Favorite Economic Thinkers, Journals, and Blogs,"Econ Journal Watch 8(2): 126–146,May 2011.econjwatch.org
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  50. ^Avlon, John (28 February 2013)."The Pro-Freedom Republicans Are Coming: 131 Sign Gay Marriage Brief".The Daily Beast– via thedailybeast.
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  55. ^"Bush Econ Advisor: Outsourcing OK".cbsnews.13 February 2004.
  56. ^ab"CNN - Bush adviser backs off pro-outsourcing comment - Feb. 12, 2004".cnn.
  57. ^Remarks on the 2004 Economic Report of the President to the National Economists Club and Society of Government EconomistsArchived2010-06-04 at theWayback Machine
  58. ^"In the New Economics: Fast-Food Factories?",The New York Times,February 20, 2004. Retrieved March 28, 2008.
  59. ^Oremus, Will (November 8, 2011)."Harvard Students Stage Walkout in OWS-Like Protest".Slate.Archived fromthe originalon December 18, 2011.where some 70 students walked out of an introductory economics class last week to protest what they saw as biased teachings.
  60. ^Isidore, Chris (November 2, 2011)."O.W.S. stages walk-out of Harvard econ class".CNN.Jose DelReal, a reporter with The Harvard Crimson, the student newspaper, said about 60 students participated in the walk-out.
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  66. ^"Gas Tax Now!".
  67. ^Mankiw, N. Gregory (16 September 2007)."One Answer to Global Warming: A New Tax".The New York Times.
  68. ^Mankiw, N. Gregory (31 August 2013)."A Carbon Tax That America Could Live With".The New York Times.
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  82. ^"Elles".25 April 2012.
  83. ^Picoult, Jodi (2008-02-05).Nineteen Minutes.Simon and Schuster. p.449.ISBN9780743496735.mankiw picoult.
  84. ^Wolitzer, Meg (2018-04-03).The Female Persuasion: A Novel.Penguin.ISBN9780525533221.
  85. ^"Greg Mankiw's Blog: A Clue in Today's Jeopardy!".
  86. ^"Miss Roloff Has Nuptials".The New York Times.17 June 1984.

External links[edit]

Political offices
Preceded by Chair of theCouncil of Economic Advisers
2003–2005
Succeeded by