Find an article from the media (internet, newspapers, magazines, etc.) on a current event that addresses an economic concept in chapters 15 and 16 (e.g., money demand and supply, the federal reserve, monetary policy, deposit multiplier, etc.). Write a one to two-page report showing: 1) summary of the article; 2) your own analysis and opinions. Make sure to use graphical analysis to analyze the issues presented in the current event (possible graphs: Supply and demand for money, trend series of interest rates, etc.)
Paul Krugman, the 2008 Economics Nobel Prize winner, just published a new book titled “End this depression now”, in which he argues that at this crossroad of economic recovery, we should not worry about government spending and budget deficit. Accordingly to him, the government should continue to spend and push the economy into a faster recovery. Only when the economy fully recovers and starts to “overheat” (rising inflation), we need to implement austerity measures to balance the budget and pay back the debt.
Do you agree or disagree with this assessment? Why?
What is one practical take away from the course that you will be able to apply now or in the near future? Why is it important? What concepts were easiest and most difficult for you to master?
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