Part 1, The Fed, Bitcoins, and Inflation
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This document provides a history of money and currency used in the United States, from colonial times to present day. It discusses the use of commodities like Spanish dollars and bills of credit in the colonial period, then the establishment of the First and Second Banks of the United States. The document outlines the transition to the bimetallic standard, then the use of United States Notes, Silver Certificates, and Federal Reserve Notes. It summarizes major monetary systems like the gold standard and Bretton Woods system, concluding with the adoption of fiat currency and the Federal Reserve's dual mandate of maximum employment and price stability. Charts on nominal GDP growth, unemployment, and inflation are included to assess the performance of different monetary eras.
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3) Current options to address the issues include doing nothing, dissolving the currency union, or tightening economic integration among members. Bailout programs have been implemented but long term solutions are still being debated.
BUAD 5500, Topic 4
The document discusses four main types of market failures: externalities, public goods, asymmetric information, and imperfect competition. It provides details on each market failure, including examples and potential solutions. For externalities, it describes negative and positive externalities in consumption and production and solutions like taxation, limits, and tradable rights. For public goods, it notes they are non-rival and non-excludable. Asymmetric information can cause issues like adverse selection, and solutions include information markets and forced consumption. Imperfect competition arises from monopoly power, pricing decisions, and sources like resources, policies, or non-homogenous goods, and solutions involve anti-trust and regulation.
Econ 2020, Topic 5
The document discusses macroeconomic models including the production possibilities frontier (PPF), the long-run aggregate supply (LRAS) curve, the aggregate demand (AD) curve, the short-run aggregate supply (SRAS) curve, and how they relate to the circular flow model and determine equilibrium output and prices in both the short-run and long-run. It also provides examples of factors that can cause these curves and equilibriums to shift, such as consumer confidence, taxes, government spending, money supply, labor force, and technology changes.
Econ 2020, Topic 4
Money is anything widely accepted as a medium of exchange and provides liquidity. The alternative to money is barter, which is inefficient. There are different types of money including commodity, convertible paper currency, commodity-backed money, and fiat money. The Federal Reserve was created in 1913 and functions as the central bank by setting monetary policy and controlling the money supply through tools like required reserve ratios, interest rates, and open market transactions. The money multiplier estimates how money is created through the reserve requirement ratio of banks. Money supply growth affects interest rates and prices in the economy.
BUAD 5500, Topic 3, Part 2
The document discusses various economic concepts related to housing, wages, and macroeconomics. It covers short-run and long-run factors that influence housing prices like mortgage rates, availability, and speculative demand. Minimum wages and their effects on labor markets are examined using supply and demand models. Macroeconomic topics explored include inflation, unemployment, GDP, production possibilities frontiers, and the circular flow model.
BUAD 5500, Topic 1 Notes
This document provides an overview of topics that will be covered in a fundamentals of economics course this spring semester. It introduces key concepts like scarcity, microeconomics, macroeconomics, the big three indicators of inflation, unemployment and GDP, how economists work using the scientific method and models, and two core economic models - the production possibilities frontier and the circular flow model. The schedule and grading policy are also mentioned.
Econ 2020, Topic 3
GDP is the total market value of all final goods and services produced in an economy in a year. GDP is composed of consumption, investment, government expenditures, and net exports. GDP can increase due to higher prices, more output being produced, or a combination of both. Inflation is measured by percentage changes in price indexes like the GDP deflator or CPI and is used to calculate real GDP, real wages, and real interest rates by adjusting for price changes over time. Unemployment is linked to economic output through Okun's Law, which states that a 1% increase in unemployment results in a 2% decrease in potential GDP.
Econ 2020, Topic 1
This document provides an introduction to macroeconomics, including the following key points:
- It outlines the topics to be covered in the course, including the basics of the syllabus, required readings from a textbook and Wall Street Journal, and use of an online learning platform.
- It defines macroeconomics as the study of how individual choices combine to determine the "big three" of inflation, unemployment, and output/growth in an economy.
- It introduces some basic economic models that will be used, including the Production Possibilities Frontier to illustrate scarcity and tradeoffs, and the Circular Flow model to show interconnections in the economy.
Economic Inequality
The document discusses trends in inequality in the United States over time. It analyzes wage, income, consumption, and wealth inequality using data from various sources. Wage inequality has increased substantially since the 1970s, with the highest earning quintile making much more than lower quintiles. Government taxes and transfers have reduced inequality but not eliminated it. The rise in inequality is likely due to factors such as changes in family structure, education, globalization, and technology that have benefited high-income groups.
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- 1. THE FED, BITCOINS, AND INFLATION 1. A BRIEF HISTORY OF MONEY Dale R. DeBoer, PhD Department of Economics, UCCS
- 2. Why not go without money? Avoidance of barter trade
- 3. Why not go without money? Avoidance of barter trade What should be used? Medium of exchange Unit of account Store of value Standard of deferred payment
- 4. What have we used? Colonial period http://www.philadelphiafed.org/educati on/teachers/resources/money-in- colonial-times/ http://www.frbsf.org/education/teacher -resources/american-currency- exhibit/independence
- 5. What have we used? Colonial period Shortage of coinage Spanish Dollar Specie Bills of credit Private representative money
- 6. What have we used? Colonial period The first central banks First Bank of the United States 1791-1811 Conversion of fiat “Continentals” to convertible currency
- 7. What have we used? Colonial period The first central banks First Bank of the United States Second Bank of the United States 1816-1836 Stabilize/expand fractional reserve banking
- 8. What have we used? Colonial period The first central banks Bi-metallic standard Coinage Act of 1834 $1 at 1.50g gold Silver to gold ratio: 16 to 1
- 9. What have we used? The first central banks Bi-metallic standard United States Notes 1862-1971 Fiat money
- 10. What have we used? The first central banks Bi-metallic standard United States Notes 1862-1971 Fiat money
- 11. What have we used? Bi-metallic standard United States Notes Silver Certificates 1878-1964
- 12. What have we used? United States Notes Silver Certificates Gold Standard Act (1900) Suspended during WWI and terminated in 1933
- 13. What have we used? Silver Certificates Gold Standard Act (1900) Federal Reserve Act (1913) Federal Reserve Notes
- 14. What have we used? Gold Standard Act (1900) Federal Reserve Act (1913) Bretton Woods System (1944) $35 per 1 oz. gold $1 at 0.81g gold
- 15. What have we used? Federal Reserve Act (1913) Bretton Woods System (1944) Nixon Shock and the end of Bretton Woods (1971 to 1973) Pure floating fiat currency
- 16. What have we used? Bretton Woods System (1944) Nixon Shock and the end of Bretton Woods (1971 to 1973) The Fed’s dual mandate (1978)
- 17. How well did they work? -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 Nominal GDP Growth, Historical Statistics
- 18. How well did they work? 0 5 10 15 20 25 30 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 Unemployment Rate, Historical Statistics
- 19. How well did they work? -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 1800 1820 1840 1860 1880 1900 1920 Retail Inflation, Historical Statistics
- 20. How well did they work?
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