[cagan_ree] Editorial notes and suggestions

[HumphreyYang]

Comments by @longye-tian

Content

• "Economist call" -> "Economists call"
• "whether it expenditures" -> "whether its expenditures"
• "if its expenditures exceeds it tax collections" -> "if its expenditures exceed its tax collections"
• "it tax" -> "its tax"
• check quotation marks across lectures
• start and stop does not satisfy bold criteria in the style sheet
• $\exp \left(\frac{m_t^d}{p_t}\right)$ -> $\exp (m_t^d-p_t)$
• Explain what $\alpha$ represents
• In (13.3) we can delete $\alpha >0$
• Explain what is a forcing variable
• Explain what is forward-looking behavior
• Setting $\delta =\frac{\alpha }{1+\alpha }$ let’s us represent the preceding equation -> Setting $\delta =\frac{\alpha }{1+\alpha }$, let's represent the preceding equation
• Define $\tilde{\gamma }=1$
• unbold bold words that should use emphasis
• Define ${\theta }_T^{\ast }$.
• Define and discuss Cagan demand function.
• Unbold "upward" "downward" and "falling".
• ${\pi }^1$ -> ${\pi }_{T_1}^1$ ${\pi }^2$ -> ${\pi }_{T_1}^2$.
• "permanent shock to the $\mu$" -> "permanent shock to the ${\mu }_t$"
• Fix the description on the plot positions.
• Change the legend of the last graph to $p_t$ for smooth $m_{T_1}$ and $p_t$ for jumpy $m_{T_1}$

Code

• Add comment to the parameters in the namedtuple and put the default values as the default values for the function.

# parameters
T = 80
T1 = 60
α = 5
m0 = 1

μ0 = 0.5
μ_star = 0

• Merge the two lines and add comments to the code:

model_params = model.m0, model.T, model.π_end, model.μ_seq, model.α, model.δ
m0, T, π_end, μ_seq, α, δ = model_params

• Put the code for visualization into a single for loop.

[HumphreyYang]

Response related to notations in cagan_ree from Tom:

In the section https://intro.quantecon.org/cagan_ree.html#some-quantitative-experiments, at the end, should theta* be pi*?

YES -- IT SHOULD BE \pi^*.

In https://intro.quantecon.org/cagan_ree.html#equation-eq-eqnmoneyjump, eq (13.12), how should we understand the superscripts on pi?

THE SUPERSCRIPTS ON THE PI'S SHOULD REMAIN. BUT ON EACH OF THE PI'S THERE SHOULD BE THE SAME T_1 SUBSCRIPT. WE CAN THEN ADD A SENTENCE BELOW WOULD SAY SOMETHING LIKE ", WHICH DESCRIBES HOW THE GOVERNMENT COULD RESET THE MONEY SUPPLY AT T_1 IN RESPONSE TO THE JUMP IN EXPECTED INFLATION ASSOCIATED WITH THE MONETARY STABILIZATION. DOING THIS WOULD LET THE PRICE LEVEL BE CONTINUOUS AT T_1"

• update formula and descriptions accordingly

[longye-tian]

This issue is now closed by #518.