• Can not build Airfield.
• Can not build Combat Support Airfield.
• Call for Transport available after a Command Post is built

• Missile Silo replaces Ion Cannon: Sponsored by United Republic of Korea, these things make NOD green with envy. It can launch a tactical nuclear strike delivered by an ICBM with 5 tactical nuclear MIRV warheads at the target location anywhere on the map. If this is not enough, J-KDI commanders can purchase additional warheads at the Silo. Each warheads cost 1500$ and each ICBM can carry 10 warheads at most.

• Riot Squad replaces Riflemen Squad: Basic infantry/policeman armed with mini assault rifles, riot shield and flash bang. They are studier but slower than their counterpart and trained to clear garrisoned building. On the flip side, they can throw flash bang at enemies infantry, which stunned for a while.
• Dragonfly Drone: Flying scout drones armed with EMP Immobilizer, which can disable ground vehicle. It can ordered to charge and self-destruct in an EMP explosion, hopefully damaging anything around it. Require Command Post.
• Service Drone: Flying support drone with timed life that can repair or heal adjacent allies units. Can only summoned through Instant Service support power.

• Cannot build Rig and Mammoth Tank.
• Assault APC: Troop transport vehicle armed with weapon jammer and fire ports. Weapon Jammer can render enemies weapons to useless, even infantry weapons. Can upgraded to deploy smoke screen to support friendly units.
• Robo Tengu replaces Guardian APC: Anti-infantry hover walker, first designed for security, then converted for military use. It can upgrade to transform into the Jet Tengu, a VTOL air superiority fighter. Can detect stealth.
• Striker-VX: Anti-air walker that can spew out surface-to-air missiles into air. It can upgraded to transform into the Chopper-VX, to combat incoming ground targets with air-to-surface missiles. Require Command Post.
• Megalodon: Powerful assault walker designed for melee combat with plasma blade, excellence durability and quite fast (for a heavy tank). It also immune to hijacking, mind control and only slowed down by EMP effects. Commandos, however, can plant charges on it legs to bring it down. It leaves behind a husk when destroyed, which can be captured or destroyed. Require Tech Center.

• Cannot build any "traditional" aircraft.

• Cannot purchase Sensor Pods, Hardpoints, Stratofighter and Railgun Upgrade.
• AP Ammo upgrade benefit Riot Squad and Tengu
• Transform Modules: Allow Robo Tengu to transform into the Jet Tengu and Striker-VX transform to Chopper-VX. Purchase at War Factory.
• Smoke Launcher: Allow Assault APC and Predator Tank launch smoke grenades at targeted area, creating a smokescreen that lasts for 6 seconds and greatly reduce sight range and attack range of units caught within. It can also force garrisoned infantry out of buildings. Purchase at Command Post.
• Expanded Missile Pods: Expands the Missile Pods for Pitbull and Striker-VX, allowing more missiles per salvo. Purchase at Tech Center.
• Hydrogen Fuel Cells: Increase Robo Tengu, Striker-VX and Megalodon speed by 33%. Megalodon also gain immunity from EMP effect. Purchase at Tech Center.

• Cannot use Orca Strike and Bloodhounds.
• GDI Airborne summon two Riot Squads and two Missile Squads instead of two Rifle Squads and two Missile Squads.
• Drone Strike: Call in kamikaze drone which crashes itself onto targeted area, explode and causing high damage. Summon 3 drones initially but every GDI War Factory present on the battlefield will release an additional Hunter-Seeker drone upon activation. Require Command Post.
• Instant Service: Call in a flock of 3 Service Drones with timed life anywhere on the map that can heal and repair adjacent allies units. Require War Factory.

1. Clear House. Location: Kobe, Japan. After the Firestorm Crisis, Empire of Japan and the United Republic of Korea, designated as Blue Zones B-6 and B-7, entered a decade of rapid development thanks to geography locations, efficient governments and technological advances. But shadows of previous conflicts still remained and now, they stir once again. Dr. Liang, a newly appointed chief scientist of J-KDI, accompanied by Battle Commander Sato in a riot control mission in Kobe. The investigators discovered that riots incited by the local Yakuza and backed by NOD. A MCV with escort arrived and quelled the riots by destroyed all hidden NOD infrastructures around the city. At one of the base, J-KDI found documents about a large operation in nearby Osaka Port.
2. Hand of Darkness. Location: Osaka, Japan. From the documents J-KDI discovered NOD had secretly taken control of Osaka Port operations through several Yakuza shell companies. There, they established a base, hidden by Disruption Towers to wait for a "special shipment" arrive. J-KDI sent a Commando task force to intercept the cargo. As the Commando arrived, he cut through NOD patrols and secured the cargo ship. With the cargo carried away by a V-35 Ox, J-KDI sent in their MCV to build a base and proceed to eliminate NOD presence in the port.
3. Hidden Vipers. Location: Ningbo, China. The cargo contained parts of a liquid Tiberium base explosive device and from NOD captives and documents, they intended stage a "test" in Tokyo area. This information raised concern for both J-KDI and GDI alike as such attack will cause massive casualties. Doctor Liang traced back the device is manufactured in Ningbo, China and had signatures of his sister, Jade Liang, now a defector. GDI Council authorized a joined assault on China Yellow Zone and put a stop to these devices production. After a bombardment, Steel Talon vanguards landed at the port while J-KDI mech wings escort Hovercraft upstream Yong Jiang river to strike at the rear. However, the city is defended by Emerald Vipers, a NOD faction specialized in toxic and liquid-T weapon. The Vipers led by Jade resisted fiercely to defend their facilities but crushed eventually. Jade escaped with only a handful of troops and GDI claimed their victory.
4. Incoming Storm. Location: Tumangang, North Korea. Several years passed since NOD Incursion and GDI slowly diminished their military forces. But J-KDI still maintained their semi-independent status and continued to developed new weapons. Recently, there words of a huge NOD armored column pushed down from Siberia toward the Korean Peninsula. Commander Sato had been mobilized to Tumangang in the Russia-North Korea border to intercept NOD advance. He arrived and begin fortified river crossing just before NOD first wave arrived. After the first wave intercepted, second wave arrived and set up shops at the opposite river bank. From there, NOD aircraft and infantry can support the third and fourth wave directly, giving Sato a hard time, however, no vehicle crossed the river. Just before the last wave, Sato receive information about the attacks on GDSS Philadelphia and Japan. He quickly finished the last wave and returned to Japan.
5. Day at the bay. Location: Yokohama, Japan. NOD attacked a GDI Council's installations in Yokohama and J-KDI called in as reinforcement to take back Ion Cannon Control Centers there. However, there early reports that another GDI force already there. Feeling something amiss, Commander Sato send a Commando and a Sniper Team to investigate the situation. Turned out, a GDI Insurgent, the Dark Eyes Insurgency (D.E.I) had taken control of the Ion Control Centers there and in process of stealing an Ion Cannon for there usage. After a brief skirmish, Sato cannot stop the D.E.I from finished taking control an Ion Cannon. At this point, the D.E.I commander propose a deal with Sato, as they willingly to help him take back the vital port of Yokohama in exchange for a blind eye, as GDI Council not giving J-KDI access to Ion Cannon Network either. Having no better choice, Sato agreed and the combined GDI wiped out remaining NOD foothold in Yokohama. Before leaving, the D.E.I generously provide Sato a shocking new: Dr. Liang life is under threat by his little sister, as she going to attack at San Diego Conference, where Dr. Liang and many GDI top scientist currently in.
6. Santa Coming, Too. Location: San Diego, California. Dr. Liang and San Diego base had been warned about the coming of NOD forces. However, the defense of the base fall in local GDI hands, as Dr. Liang forces are only a handful of guards and mechs. As the Vipers approached, they were caught surprised by J-KDI transform mechs and Vipers aircraft soon removed out the sky as their home Air Tower destroyed. This angered Jade and she soon send in more troops to the meat grinder. In the moment the base about to fall, an APCOM reinforcement wing arrived and bombed NOD forces to oblivion. Jade herself forced to abandoned the battle, leaving behind many Vipers casualties behind.
7. Relics of the Past. Location: Point Hope, Alaska. Having stabilized the Blue Zones, GDI High Command planned for a retaliation strike at NOD. J-KDI Command didn't sit still either, as they're dangerously close to the China Yellow Zone. However, to J-KDI also lack the capability to strike deep into China mainland where NOD headquarter is. Dr. Liang proposed a bold idea: by using an old experimental device Allied forces used during the Third World War, they can teleport a limited number of vehicle directly at NOD headquarter and destroy NOD from inside out. However, this device currently mothballed in a abandoned base in Alaska, with rumors of NOD activities in the region. As the plan when through by GDI High Command, Dr. Liang and Sato lead and expedition to dig out the old Chronosphere and charged it to full. While Dr. Liang busy restore and recharge the Chronosphere, Commander Sato take charge of a naval battle with two NOD Battleships and their escort.
8. Chrono You Didn't. Location: Nanchang, China. With the old Chronosphere device fully charged, J-KDI begin their raid on NOD Asian Headquarter in China. After clear out a NOD outpost, a MCV with some mech teleported and begin set up shops at the west bank of the river. Local Black Hand alerted of J-KDI presence and sent a Purifier with a few Scorpions to intercept GDI but soon torn to shed by mech reinforcement. This, however, do not deter the Black Hand and NOD from sending in more troop and vehicles at the J-KDI base, stalling J-KDI advance for a time. After a few round of reinforcements, Dr. Liang inform commander Sato that the Chronosphere will reach it limit soon, but a ZOCOM commander volunteer to arrived at a last batch reinforcement. A ZOCOM MCV with some vehicle and two MARVs soon teleported in was the last reinforcement, but they are more than enough. Together with ZOCOM, J-KDI pushed forward and even destroyed a Black Hand Redeemer, forcing them to retreat. The main NOD base soon followed suit and fall to the combined might of the two MARVs. With their Command Headquarter destroyed, NOD forces in China soon fall to disarray. This mission is a total victory.
9. Doomsday Countdown. Location: Incheon, South Korea. The situation in the Far East is stabled and only minor NOD resistances remained but a large number of NOD had escaped their demise. Peace finally there, but it is short lived, as the Earth under attack by an unknown Aliens. There crafts landed across the globe and their forces strike in every Blue and Yellow Zones. A Drone Platform had landed in Incheon and Commander Sato sent to deal with it. A strike team arrived from sea and encountered heavy Alien patrols. Battleship called for bombards to clear a landing zone for an J-KDI outpost. The alien deployed their Rift Generator, intend using it to wipe out any humans resistant. In face such mass destruction weapons, J-KDI authorized the use of Tactical Nukes and a Silo is deployed. With the help of a EMP Control Center, J-KDI disrupt the Rift Generator long enough for their forces to destroyed the Rift Generator and nuked the Drone Platform along with any remained Aliens to oblivion.
10. Under the Sacred Mountain. Location: Mt. Fuji, Japan. When Commander Sato busy dealing with the aliens in Hiroshima, Dr. Liang received distress signals from a GDI facility in Mt. Fuji. Apparently, his little sister, Jade attacked the facility to eliminate a high ranking NOD defector sheltered there. But the Aliens arrival foiled her plan and now she caught in the crossfire between GDI and Aliens. This opportunity cannot be missed but J-KDI had given order to prioritized the defector safety first, thus Dr. Liang led reinforcements to Mt. Fuji. He arrived from the north to the final GDI base there while Jade three base besieging them. As for the Aliens, there coming from the South, keep hammering Jade from behind. J-KDI first recaptured the Power Plant to reactivate the remain defend system, which temporally push Jade forces back. Afterward, they begin to hammer Jade bases while she fend off the Aliens. Cannot withstand any further, Jade flee again, abandoned remaining forces to their fate. The Aliens also dealt with afterward and the defector escorted to safety.
11. Shipwright. Location: Naval Base White Beach, Okinawa. A ZOCOM aircraft carrier task force arrived in Okinawa for emergency repair and refuel. The carrier carried with it a special cargo and under attack by the Reaper-17 pursuers. J-KDI sent Commander Sato to unsured the cargo safety. When be Carrier under repaired, all sirens sounded as Alien Storm Riders approached, but all shot down. Soon, more Aliens ground forces arrived along the north beach while more Storm Riders flied in from the sea. J-KDI and ZOCOM hold off the Aliens long enough for the Carrier Task force to repair and refuel, then escort the task force to high sea, after destroyed the Alien foothold in the region, of course.
12. Race of Arms. Location: Threshold 14, Guangdong, China. The cargo had reached safety in the high sea while the Aliens pursuer retreated. GDI High Command, alerted of Alien's Towers in the Red Zone, planned to destroyed them before they finished constructing. J-KDI had been assigned to bring down the Tower in China Red Zone, code name Threshold 14. When the vanguard arrived, they found themself not only facing Alien but also NODs. Under pressure from both side, J-KDI hold on to their footholds while withering down Alien and NOD forces. Soon, Dr. Liang informed that a special Chrono delivery is coming. Commander Sato send the signal for three warheads to teleported near the Phase Generators and denotate them, reduced a huge chunk of Alien base to dust. With the Phase Generators outed, the Tower is now vulnerable and a nuclear strike later, it blew to smithereens.
13. Of Brother and Sister. Location: Giraud-Moebius Tiberium Crater. Five years after the Third Tiberium War, GDI now stand victorious and the Brotherhood back to it shadows once more, J-KDI busying rebuild their city and society when Dr. Liang receive a shocking news, his sister, Jade Liang had betrayed Kane and now withdrawn to her final stronghold deep within Central Asia Red Zone. Dr. Liang asked for permission to finish business with his sister and authorized by GDI High Command. As Jade stronghold is hard to breached, J-KDI use a more bold approach, drop a MCV dropped from orbit inside her compound and destroy it from within. As J-KDI about to attack, the Marked of Kane already begun their assault. This created distraction needed for the MCV to make land fall and how can Dr. Liang refuse such a chance. A MCV task force dropped behind Jade lines and start to set up shops while Jade busy fighting cyborgs. Only when she realized her defend line pincered by both mechs and cyborgs then it is already too late. Not willing give up, Jade activated four Cloning Vats, devices left behind from Soviet-era that can clones every infantry Jade forces have trained. Fortunately, the Kenan Corp reinforcements arrived and together, the three forces pushed toward Jade headquarter. Jade in her madness, denotate a Liquid-T Bomb, intended to take the attacker down but ultimately failed and captured by J-KDI troops. After a brief conversation, Dr. Liang bid farewell to his sister and handed her to a cyborg, then a gunshot rang ....

• Lecture Video

Slide 2: Two traditions (0:00 – 0:18)

“There were, at the least, two strands in classical economics. There was one (represented, roughly speaking, by Ricardo and his followers) which maintained that all would be well if by some device credit money could be made to behave like metallic money; there was another (represented, so far as I have taken the story, by Thornton and Mill) which held that credit money must be managed, even though (as was admitted) it is difficult to manage it. This is a major difference, and it has outlasted Keynes.” Hicks 1967, “Monetary Theory and History”

Slide 3: Drivers (0:18 – 5:18)

• World Wars, World Depression, Rise of Welfare State, Stabilization Policy
• Rise of the United States (1913 Fed, 1944 Bretton Woods), from sterling to dollar reserve
• Professionalization of Economics, Formal Turn in Economics, Econometric Movement
• De-colonization, Independence, Financial Crisis
• Emerging Markets, Financial Globalization, Global Financial Crisis

Slide 4: The Money View (5:18 – 6:41)

• Banking as a Payments System
  • Copeland (1952): A Moneyflow Economy
  • Minsky (1957): The Survival Constraint
• Banking as a Market Making System
  • Hawtrey (1919): Hierarchy of Money and Credit
  • Hicks (1989): Centrality of the Dealer Function
  • Bagehot (1873): Dealer of Last Resort

Slide 5: The Economics/Finance View (6:41 – 8:12)

• MV=PT, money as means of exchange
• IS-LM (nominal interest rate), money as store of value
• Purchasing Power Parity, P=sP* (FX), money as measure of value
• DSGE with Taylor Rule (inflation targeting)

Slide 6: Finance and Macroeconomics (8:12 – 10:36)

Finance: “consumption CAPM” Economics: “Real Business Cycles”

Slide 7: Fatal Abstractions (10:36 – 13:06)

• No “Banking as a Payment System”
  • No Money Flow, NIPA
  • No Survival Constraint, Budget Constraint
• No “Banking as a Market-Making System”
  • No Hierarchy, Money as n+1th market
  • No Dealers, Price equilibrates, supply and demand
  • No Dealer of Last Resort, Central Bank operates on inflation expectations

Slide 8: Monetary Thought, 1913 (13:06 – 18:15)

Slide 9: Political Thought, 1913 (18:15 – 21:53)

• Three Bogeymen
  • Big Finance Memory of 1907 Crisis (JP Morgan)
    • And 1910 (Jekyll Island)
  • Big Government Memory of 1862 (Greenbacks)
  • Big Wide World Actuality of Sterling System
• Political Solution
  • Real Bills Language (vs. Finance and Government)
  • Gold Convertibility (vs. Wide World)
  • Board of Governors, democratic oversight
• Funding Liquidity vs. Market Liquidity

Slide 10: Language vs. Reality (21:53 – 26:21)

• Funding liquidity versus market liquidity
  • Real bills doctrine, self-liquidating bills
  • Shiftability doctrine, Moulton 1918
    • Primitive repo, Primitive shadow banking!
• Wartime transformation
  • Centrality of government debt (Bogey #2)
  • Centrality of government debt dealers (Bogey #1)
• Tenth Annual Report (1923)
  • Invention of open market operations

Slide 11: Great Depression Transformation (26:21 – 28:21)

• Federal Reserve failure
  • 1931 lender of last resort but not dealer of last resort (funding liquidity, not market liquidity)
• Federal Reserve transformation
  • Banking Act of 1935, “apotheosis of shiftability”
  • Banking Act of 1937, “orderly conditions” tantamount to dealer of last resort, essential hybridity

Slide 12: Emerging Norms of Management (28:21 – 33:53)

• Keynes 1930 Treatise, normal backwardation
  • Keynes 1936 GT, liquidity preference
  • Hicks 1939, V&C, forward rate bias
• Wartime hiatus, and more transformation
  • From war finance to Bretton Woods 1944 (Bogey #3)
  • From war finance to Fed-Treasury Accord 1951
• FOMC “Report of the Ad Hoc Subcommittee on the Government Securities Market” (1952)
  • Level of interest rates
  • “Tone” of the money market, centrality of private dealers

Slide 13: Capital Finance, indirect (33:53 – 36:04)

Slide 14: International Dollar, indirect (36:04 – 37:16)

Slide 15: Origins of Macroeconomics? (37:16 – 38:28)

• Alvin Hansen
  • Continental Business Cycles (Schumpeter) + American Institutionalism (Burns/Mitchell)
• John Maynard Keynes
  • English Banking Traditions (Tooke, Bagehot, Marshall, Hawtrey)
• James Tobin: neoclassical synthesis
  • Irving Fisher (Walrasianism) + Cambridge Quantity equation

Slide 16: Evolution of Macro? (38:28 – 40:11)

• Internal Inconsistency, Monetarist Challenge
  • Phelps (1968), Friedman (1968), Muth (1961)
• New Classical Theory (Lucas 1975, 1976, 1977)
  • “Equilibrium Model of the Business Cycle”
  • “Econometric Policy Evaluation”
  • “Understanding Business Cycles”
• Real Business Cycles
  • Kydland and Prescott (1982)
  • Long and Plosser (1983)

Slide 17: The Lucas Link: Macro vs. Finance (40:11 – 42:52)

“On the one hand, it is easy to postulate agents and market institutions which ignore or foolishly waste information: the result is a theory which seriously understates agents’ abilities to vary their decision rules with changes in the environment (such as, for example, the theory underlying the major econometric forecasting models). It is equally easy to postulate ‘efficient’ securities markets which rapidly transmit all information to all traders: the result is a static general equilibrium model. To observe that one must avoid both extremes to understand the business cycle does not take one very far in discovering the correct ‘centrist’ model, but it seems nonetheless an essential point of departure.” (Lucas 1975, 1138).

Slide 18: Rise of the Academics (42:52 – 46:34)

Slide 19: Modigliani (46:34 – 47:22)

• “Liquidity Preference and the Theory of Interest and Money” (1944)

Slide 20: Samuelson (1947 [1937]) (47:22 – 50:04)

• Robertson’s Money (1922)
• Monetary Walrasianism
  • Hicks 1935 “A suggestion for simplifying…”
  • Marschak 1938 “Money and the theory of assets”
• M = M(p1,….,pn,pm,I,r)
  • Monetary theory of the rate of interest? NO
  • Liquidity preference theory of term structure? NO
• Neoclassical Synthesis (1955, 1967)

Slide 21: An Aside on Hicks (50:04 – 51:20)

• Repudiation of 1937 “Keynes and the Classics”, but not 1935 “Simplifying”
• 1962 Presidential Address “Liquidity” restarts his monetary inquiry, culminating in 1989 Market Theory of Money
• Not monetary Walrasianism, rather completion of Keynes Treatise on Money
• Hicks and the money view

Slide 22: Emerging Norms of Management (51:20 – 53:09)

Slide 23: State of Debate circa 1975 (53:09 – 55:12)

Slide 24: Can Monetary Policy Work? (55:12 – 56:52)

“If the interest rate on money, as well as the rates on all other financial assets, were flexible and endogenous, then ….there would be no room for monetary policy to affect aggregate demand.” Tobin (1969, 26)

Slide 25: Monetarism Mark I (56:52 – 57:14)

• “One can see why the initial monetarist tide was so successful – no one had thought of building any dykes.”
  • Hahn on neoclassical “synthesis” (1983, 51) in Paul Samuelson and Modern Economic Theory

Slide 26: The "Hahn Problem" (57:14 – 58:15)

Slide 27: The Problem of Time (58:15 – 1:00:25)

Slide 28: Rise of Finance (1:00:25 – 1:01:00)

• CAPM Origins [Marschak 1938]
  • Markowitz (1956) to Sharpe (1964)
  • Modigliani-Miller (1958) to Treynor (1962)
• Options Pricing Origins
  • Treynor to Black-Scholes (1973)
  • Samuelson to Merton (1973)

Slide 29: "Monetarism" Mark II (1:01:00 – 1:01:35)

• Black (1970) “Banking in a World Without Money”
• Real Business Cycles
  • Kydland and Prescott (1982)
  • Long and Plosser (1983)
• Dynamic Stochastic General Equilibrium Model
  • No banks, no money, liquidity as a free good
  • Price level formed by “expectations” and Central Bank Taylor Rule

Slide 30: Risk control in efficient markets (1:01:35 – 1:03:17)

Slide 31: Special Theories of "Liquidity" (1:03:17 – 1:04:18)

Slide 32: The Problem of time, Redux (1:04:18 – 1:05:05)

Slide 33: The Money View (1:05:05 – 1:05:10)

• Banking as a Payments System
  • Copeland (1952): A Moneyflow Economy
  • Minsky (1957): The Survival Constraint
• Banking as a Market Making System
  • Hawtrey (1919): Hierarchy of Money and Credit
  • Hicks (1989): Centrality of the Dealer Function
  • Bagehot (1873): Dealer of Last Resort

Slide 34: "Capitalism is essentially a financial system" (1967) (1:05:10 – 1:05:31)

Slide 35: The Vision of Minsky (1999) (1:05:31 – 1:08:12)

“By his own reckoning, Minsky was an institutionalist economist in the sense that he viewed the structure of the economic world not as immanent in some set of underlying data—such as endowments, technology, and preferences—but rather as constituted by a set of key economic institutions. He was institutionalist too in his insistence that our economy is essentially, not incidentally, monetary in character. His way of fleshing out that idea was to look at every economic unit—firms, households, governments, even countries—as though it were a bank daily balancing cash inflow against cash outflow. From that point of view, the categories that most economists, and most people, take to be solid simply melt into air. Production, consumption, and trade, are nothing more than flows of money in and out and between different economic units. The most real thing is money, but money is nothing more than a form of debt, which is to say a commitment to pay money at some time in the future. The whole system is therefore fundamentally circular and self-referential. There is nothing underneath, as it were, holding it up. In Minsky’s hyper-modern institutionalism, institutions do not merely organize the stuff of some pre-existing real world; there are the only real world there is. Financial relationships are not about mediating something else on the ‘real’ side of the economy; they are the constitutive relationships of the whole system. The veil of money is the very fabric of the modern economy.”