Economic essay

Please I need a good answers and 2 page is the minimum for the question

NUMBER ONE {100 points}. Value of the dollar.

What was the “value of a dollar” in 1959? How does this value compare with the value of a

dollar in 1979? in 2009? What are the most important concepts to keep in mind about the

measurement and calculations which go into the generation of numbers which measure the

“value of a dollar”?

NUMBER TWO {100 points}. Current economic conditions in the U.S.

Consider the following macroeconomic data for the U.S. The the nationwide

U.S.

unemployment rate for September 2014 was 5.9%, down from 6.1% in August 2014, and down

from 7.2% in September 2013. The 12month

change in the Consumer Price Index shows the

inflation rate at 1.7% for August 2014; the oneyear

inflation rate in August 2013 was at 1.5%. For

the last four years, figures for the average hourly earnings of all employees have increased by

approximately 2 percent each year. Labor productivity increased by 0.9% in 2013, and by about

1.0% in 2012. {Source: bls.gov}

The real GDP growth rate for the second quarter of 2014 was +4.6%, but for the first quarter

of 2014 was 2.1%

; for all of 2013, the annual real GDP growth rate was approximately +3.0%.

{Sourcce: http://research.stlouisfed.org/}

Where is the U.S. economy in the business cycle? Explain.

NUMBER THREE {100 points}. Equity prices and interest rates.

In general, equity prices such as indexes of stock prices like the Standard & Poors 500 or the

Dow Jones Industrial Average, increase when interest rates are decreasing. Explain why. How

can an investor determine whether the price of equities is rising due to monetary & financial

factors such as the decline of interest rates or for other reasons? Is this distinction important to

the investor? Explain.

NUMBER FOUR {100 points}. Slow up fast down.

Assess Prof. Oerther’s empirical observation that macroeconomic activity in general, and

equity markets in particular, seem to show a pattern of SLOW UP FAST DOWN. Is this

accurate? Explain. Construct a counterargument:

what would have to happen, how would

economic and financial activity have to work in order to have a pattern of FAST UP SLOW

DOWN? How plausible is this reverse narrative and are there important lessons for the investor

to keep in mind from this argument between the two characterizations? Explain.

NUMBER FIVE {100 points}. Financial innovation.

Mishkin explains that financial innovations affect the functioning of financial markets and

banking practices. In Mishkin’s view, the increasing diversity and complexity of financial

instruments offered to investors has, on net, improved the efficiency and effectiveness of the

arbitrage function served by financial markets and banking institutions. Provide some examples

of innovations made in the last 1020

years in financial products and/or services, and how they

have (or have not) increased the productivity of financial markets.

NUMBER SIX {100 points}. Behavioral concepts in banking and finance.

Define and explain the economic behavioral concepts of “adverse selection” and “moral

hazard.” How are these important to the modern understanding of how banking and financial

institutions function? How do these concepts change the way economists might view the

functioning of the market process of financial intermediation and what conclusions we might

derive about the efficiency and effectiveness in the operating of of financial and capital markets?

NUMBER SEVEN {100 points}. Do some investigation.

Go to the website of one of the twelve FEDERAL RESERVE banks and find out something.

At this site, pursue Federal Reserve sources of information, data, theoretical research, policy

research or other resources made available by that Federal Reserve website and provide a

referential citation (location) and a brief summary of what content you have discovered and why

it is interesting and/or useful from the standpoint of monetary economics and money & banking.