Tom's March 19 morning edits of some lectures

Author: thomassargent30

lectures/french_rev.md

@@ -101,7 +101,7 @@ in payment, they were to be burned.
 The appendix to {cite}`sargent_velde1995` describes  the
 auction rules in detail.
 ```
-) The Estates available for sale were thought to be worth about 2,400
+The Estates available for sale were thought to be worth about 2,400
 million, while the exactable debt (essentially fixed-term loans, unpaid arrears,
 and liquidated offices) stood at about 2,000 million. The value of the land was
 sufficient to let the Assembly retire all of the exactable debt and thereby eliminate
@@ -114,12 +114,12 @@ aspects of monetary theory help in thinking about the assignat plan. First, a sy
 beginning with a commodity standard typically has room for a once-and-for-all emission
 of (an unbacked) paper currency that can replace the commodity money without generating
 inflation. \citet{Sargent/Wallace:1983} describe models with this property. That
-commodity money systems are wasteful underlies Milton \possessivecite{Friedman1960} preference
+commodity money systems are wasteful underlies Milton Friedman's (1960) TOM:ADD REFERENCE preference
 for a fiat money regime over a commodity money. Second, in a small country on a
 commodity money system that starts with restrictions on intermediation, those restrictions
 can be relaxed by letting the government issue bank notes on the security of safe
 private indebtedness, while leaving bank notes convertible into gold at par. See
-Adam \citet{Smith:1776} and \citet{Sargent_Wallace_1982} for expressions of this idea.
+Adam Smith  and Sargent and Wallace (1982) for expressions of this idea. TOM: ADD REFERENCES HEREAND IN BIBTEX FILE.
 ```
 
 
@@ -401,17 +401,15 @@ with the Terror. It is marked by high real balances, around 2,500 millions, and
 roughly stable prices. The fall of Robespierre in late July 1794 begins the third
 of our episodes, in which real balances decline and prices rise rapidly. We interpret
 these three episodes in terms of three separate theories about money: a ``backing''
-or ''real bills'' theory (the text is Adam Smith [1776],
-a legal restrictions theory,%
-\footnote{\citet{Keynes:1940} urged a forced saving
-program for war finance. \citet{Bryant/Wallace:1984} and \citet{Villamil:1988} have formalized aspects
-of Keynes's analysis.}
+or ''real bills'' theory (the text is Adam Smith (1776)),
+a legal restrictions theory (TOM: HERE PLEASE CITE 
+Keynes,1940, AS WELL AS  Bryant/Wallace:1984 and Villamil:1988) 
 and a classical hyperinflation theory.%
 ```{note}
-According to \possessivecite{Cagan:1956} definition of hyperinflation,
+According to the empirical  definition of hyperinflation adopted by {cite}`Cagan`,
 beginning in the month that inflation exceeds 50 percent
 per month and ending in the month before inflation drops below 50 percent per month
-for at least a year, the \emph{assignat} experienced a hyperinflation from May to December
+for at least a year, the *assignat*  experienced a hyperinflation from May to December
 1795.
 ```
 We view these

lectures/laffer_adaptive.md

@@ -17,9 +17,9 @@ kernelspec:
 
 ## Overview
 
-This lecture studies stationary and dynamic **Laffer curves** in the inflation tax rate in a non-linear version of the model studied in this XXXX lecture.
+This lecture studies stationary and dynamic **Laffer curves** in the inflation tax rate in a non-linear version of the model studied in this  lecture {doc}`money_inflation`.
 
-As in lecture XXXXX, this lecture uses the log-linear version of the demand function for money that Cagan {cite}`Cagan` used in his classic paper in place of the linear demand function used in this XXXX lecture.
+As in the lecture {doc}`money_inflation`, this lecture uses the log-linear version of the demand function for money that Cagan {cite}`Cagan` used in his classic paper in place of the linear demand function used in this  lecture {doc}`money_inflation`.
 
 But now, instead of assuming  ''rational expectations'' in the form of ''perfect foresight'',
 we'll adopt the ''adaptive expectations'' assumption used by Cagan {cite}`Cagan`.

lectures/money_inflation.md

@@ -19,7 +19,10 @@ kernelspec:
 
 ## Overview
 
-This lecture describes a theory of price level variations that consists of two components
+This lecture extends and modifies the model in this lecture {doc}`cagan_ree` by modifying the
+law of motion that governed the supply of money.  
+
+In particular, this lecture describes a theory of price level variations that consists of two components
 
  * a demand function for money 
  * a law of motion for the supply of money
@@ -31,30 +34,42 @@ The law of motion for the supply of money assumes that the government prints mon
 Our model equates the demand for money to the supply at each time $t \geq 0$.
 
 Equality between those demands and supply gives in a **dynamic** model in which   money supply
-and  price level **sequences** are simultaneously determined by a special  set of simultaneous linear  
-equations.
+and  price level **sequences** are simultaneously determined by a special  set of simultaneous linear  equations.
 
 These equations take the form of what are often called vector linear **difference equations**.  
 
 In this lecture, we'll roll up our sleeves and solve those equations in a couple of different ways.
 
 As we'll see, Python is good at solving them.
 
+
+(One of the methods for solving vector linear  difference equations will take advantage of a decomposition of a matrix that is studied in this lecture {doc}`eigen_I`.)
+
+In this lecture we will encounter these concepts
+
+* an **inflation tax** that a government gathers by printing paper or electronic money
+* a dynamic **Laffer curve** in the inflation tax rate that has two stationary equilibria
+* perverse dynamics under rational expectations in which the system converges to the higher stationary inflation tax rate
+* a peculiar comparative stationary-state analysis connected with that stationary inflation rate that assert that inflation can be **reduced** by running **higher**  government deficits 
+
+The same qualitive outcomes prevail in this lecture {doc}`money_inflation_nonlinear` that studies a nonlinear version of the model in this lecture.  
+
+These outcomes will set the stage for the analysis of this lecture {doc}`laffer_adaptive` that studies a version of the present model that  uses a version of "adaptive expectations" instead of rational expectations.
+
+That lecture will show that 
+
+* replacing rational expectations with adaptive expectations leaves the two stationary inflation rates unchanged, but that $\ldots$ 
+* it reverse the pervese dynamics by making the **lower** stationary inflation rate the one to which the system typically converges
+* a more plausible comparative dynamic outcome emerges in which now inflation can be **reduced** by running **lower**  government deficits
+
+This outcome will be used to justify a selection of a stationary inflation rate that underlies the analysis of unpleasant monetarist arithmetic to be studies in this lecture {doc}`unpleasant`.
+
 We'll use theses tools from linear algebra:
 
  * matrix multiplication
  * matrix inversion
  * eigenvalues and eigenvectors of a matrix
 
-Let's start with some imports:
-
-```{code-cell} ipython3
-import numpy as np
-import matplotlib.pyplot as plt
-from matplotlib.ticker import MaxNLocator
-plt.rcParams['figure.dpi'] = 300
-from collections import namedtuple
-```
 
 ## Demand  for and Supply of Money
 
@@ -244,6 +259,21 @@ A steady state gross rate of return  $\bar R$ solves quadratic equation {eq}`eq:
 So two steady states typically exist. 
 
 
+
+## Some Code
+
+
+Let's start with some imports:
+
+```{code-cell} ipython3
+import numpy as np
+import matplotlib.pyplot as plt
+from matplotlib.ticker import MaxNLocator
+plt.rcParams['figure.dpi'] = 300
+from collections import namedtuple
+```
+
+
 Let's set some parameter values and compute possible steady state rates of return on currency $\bar R$, the  seigniorage maximizing rate of return on currency, and an object that we'll discuss later, namely, an initial price level $p_0$ associated with the maximum steady state rate of return on currency.
 
 +++

lectures/money_inflation_nonlinear.md

@@ -17,10 +17,10 @@ kernelspec:
 
 ## Overview
 
-This lecture studies stationary and dynamic **Laffer curves** in the inflation tax rate in a non-linear version of the model studied in this XXXX lecture.
+This lecture studies stationary and dynamic **Laffer curves** in the inflation tax rate in a non-linear version of the model studied in this lecture {doc}`money_inflation`.
 
 This lecture uses the log-linear version of the demand function for money that Cagan {cite}`Cagan`
-used in his classic paper in place of the linear demand function used in this XXXX lecture. 
+used in his classic paper in place of the linear demand function used in this lecture {doc}`money_inflation`. 
 
 That change requires that we modify parts of our analysis.