Week 4 Discussion 1 & 2 BUS 592/626

Week 4 - Discussion Forum

Required Resources

Text

Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018).  Macroeconomics: Private and public choice  (16th ed.). Retrieved from https://www.cengage.com

· Chapter 13: Money and Banking System

Book

Forbes, S., & Ames, E. (2014).  Money: How the destruction of the dollar threatens the global economy—And what we can do about it . Retrieved from https://www.vitalsource.com

· Chapters 1 through 6 are required reading for this week and will assist you with your In Money We Trust? Documentary and Money Book Analysis assignment this week.

· Chapter 1: How We Got Here

· Chapter 2: What Is Money

· Chapter 3: Money and Trade

· Chapter 4: Money Versus Wealth

· Chapter 5: Money and Morality

· Chapter 6: The Gold Standard

Multimedia

PBS. (2018, December 29).  In money we trust? (Links to an external site.) [Video file]. Retrieved from https://www.pbs.org/video/in-money-we-trust-ox6o7a/

· This 1-hour documentary discusses the history of money, which was invented some 2,500 years ago. Money provides a shared measure to facilitate trade. The documentary looks at how inflation and other forms of instability may cause a distrust in money, with Venezuela serving as a current example. The documentary discusses how the loss of trust in money has contributed to cryptocurrencies, greater income inequality, and social turmoil. Featured are more than 20 distinguished experts, including former Federal Reserve Chairmen Alan Greenspan and Paul Volcker. In Money We Trust? is based on the book, Money: How the Destruction of the Dollar Threatens the Global Economy—and What We Can Do About It, co-authored by Steve Forbes and Elizabeth Ames. This video will assist you with your In Money We Trust? Documentary and Money Book Analysis assignment this week. This video has closed captioning. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

 

Recommended Resources

Text

Tamny, J. (2015).  Popular economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach you about economics . Retrieved from https://www.redshelf.com

· In these chapters, Tamny gives his perspective on money and necessity of the money supply to be stable. This will give you further insight into the use of money and may assist you with your In Money We Trust? Documentary and Money Book Analysis assignment this week.

· Chapter 19: A Floating Foot, Minute, and Second Would Give You Ugly Houses, Burnt Wings, and Slow NFL Draft Picks

· Chapter 20: Do Not Be Fooled by Rising Computer, Flat Screen, and VHS Prices: They Are Not an Inflation or Deflation Signal

· Chapter 21: True Inflation is Currency Devaluation, and It Is a Cruel Blast to the Past

Book

Forbes, S., & Ames, E. (2014).  Money: How the destruction of the dollar threatens the global economy—And what we can do about it . Retrieved from https://www.vitalsource.com

· Chapter 7 gives some commonsense tips on what to do with your personal wealth. Chapter 8 offers Forbes’ view of the future and the issues associated with an unstable money supply. Both chapters will give more insights into Forbes’ thinking and may assist you with your In Money We Trust? Documentary and Money Book Analysis assignment this week. Additionally, this book is a good read and you may just have the urge to finish the book!

· Chapter 7: Surviving in the Meantime

· Chapter 8: Looking Ahead

Articles

The Economist. (2018, October 20).  Upsetting the punchbowl: Free exchange . The Economist, 78. Retrieved from https://www.economist.com/

· The full-text version of this article is available through the ProQuest Central database in the Ashford University Library. This article speaks to the larger concept of a central bank rather than just about the Federal Reserve Bank in the US. The article gives some history on why the concept of a central bank was established. The article also discusses some of the issues in having a central bank set monetary policy. This article gives a more global view and may assist you with the Federal Reserve Bank (Debate) discussion forum this week.

Forbes, S. (2018, April 30).  New Fed head: Same old, bad old . Forbes, 13. Retrieved from https://www.forbes.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. In this article, Steve Forbes discusses the Federal Reserve policy and ties his thoughts to the need for stable money. This article provides a clear understanding of Forbes’ thoughts on the usefulness of the Federal Reserve policies in trying to drive the economy. This article will give you a perspective against the Federal Reserve policies and may assist you with the Federal Reserve Bank (Debate) discussion forum this week.

Forbes, S. (2018, October 31).  The disaster of 2008: Why it can happen again . Forbes, 21–22. Retrieved from https://www.forbes.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. In this article, Steve Forbes gives thought-provoking comments on the root cause of the 2008 crisis and its tie to the weak dollar. He gives his views on monetary policy and the importance of a stable dollar to avoid making a down economy worse through government actions. This article may assist you with your In Money We Trust? Documentary and Money Book Analysis assignment this week.

Mallaby, S. (2017, June).  Will Trump destroy the dollar? How a clash with the Fed could stoke inflation and destabilize the economy . The Atlantic, 15–18. Retrieved from https://www.theatlantic.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This interesting article discusses how past U.S. presidents as well as President Trump attempt to influence the Federal Reserve Bank policies. The article flushes out some of the politics behind the policies set by the Fed. The article helps you understand the Fed pressures and may assist you with the Federal Reserve Bank (Debate) discussion forum this week.

Multimedia

Board of Governors of the Federal Reserve System. (n.d.).  What is the Fed? (Links to an external site.) [Video file]. Retrieved from https://www.federalreserve.gov/aboutthefed.htm

· This video provides a clear and concise overview of how the Federal Reserve Bank is structured and the board’s functions. The video is easy to understand and includes pictures of the Federal Reserve board members. The video provides the basics and may assist you with your Federal Reserve Bank (Debate) discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Federal Reserve Bank of St. Louis. (n.d.).  In plain English: Making sense of the Federal Reserve (Links to an external site.) [Video file]. Retrieved from https://www.stlouisfed.org/education/in-plain-english-video

· This video provides a detailed view of how the Federal Reserve Bank works. The video is animated, making it a bit more entertaining and easier to follow. The video discusses the entire structure and goals of the Fed. This video provides all the details of the Fed and may assist you with your Federal Reserve Bank (Debate) discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Marginal Revolution University. (2018, March 13).  How the Federal Reserve worked: Before the great recession (Links to an external site.) [Video file]. Retrieved from https://youtu.be/jheesQ8ot3g

· This video discusses the Federal Reserve’s massive influence over the United States and global economy. Specifically, the video looks at how the Fed uses its tools to stimulate or shrink aggregate demand, and how the Fed has changed since the Great Recession. The video covers how the Fed enacted policies prior to 2008 and may assist you with your Federal Reserve Bank (Debate) discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Marginal Revolution University. (2018, April 3).  How the Federal Reserve works: After the Great Recession (Links to an external site.)  [Video file]. Retrieved from https://youtu.be/dTivWJvGYtI

· This video is a continuation from the  How the Federal Reserve worked: Before the Great Recession   (Links to an external site.)video and discusses the Federal Reserve Bank after the Great Recession. In response to the Great Recession, the Federal Reserve has implemented some new instruments and policies—including quantitative easing, paying interest on reserves, and conducting repurchase (and reverse repurchase) agreements. This video may assist you with the Federal Reserve Bank (Debate) discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Oswald, M. (Writer & Director). (2012).  How is money created?  [Segment]. In M. Horwath (Producer), 97 percent owned [Documentary film]. Retrieved from Films On Demand database.

· This video provides a more global view of money, the creation of money, and monetary policy as viewed by Great Britain. This is a very interesting perspective as the British economy is quite a bit older than the U.S. economy and holds many lessons for our own economy. This is a fascinating video that may assist you with your Federal Reserve Bank (Debate) discussion forum and your In Money We Trust? Documentary and Money Book Analysis assignment this week. This video has closed captioning and a transcript. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Prior to beginning work on this discussion,

· Read Chapter 13 of Macroeconomics: Private and Public Choice.

Monetary policy is largely determined by the Federal Reserve Bank (Fed) in the United States. For this discussion, let’s cordially debate the necessity of the Fed.

For your initial post address the following:

· How does the Fed control the money supply? Be sure to explain how they can expand or restrict the money supply.

· How does the banking system create money?

· List two to three pros and cons of the Federal Reserve Bank.

· What is your conclusion: is the Fed necessary? Support your opinion.

Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text