This document summarizes and discusses several topics related to economics and government, including:
1) It summarizes the 3-part Allied Mindstorm university challenge and provides information on how to apply.
2) It discusses problems with large governments including issues with money like inflation and decreasing purchasing power over time, continuous intervention in the economy leading to unintended consequences, and soaring government debt levels that may eventually need to be redeemed causing economic instability.
3) It provides definitions and brief histories of concepts like the state, money, and inflation and argues for limited government and banking systems to control debt growth.
Viewpoint Newsletter from Clear View Wealth Advisors with a focus on the role of dividend-paying stocks and the inflation-deflation debate. Also includes links to the free financial roadmap tool.
The document provides an update from Agcapita on various economic issues in April 2010. It discusses the large fiscal deficits governments have incurred to deal with the financial crisis and how this has made governments insolvent. It argues that to finance deficits, governments will likely resort to inflation. It also notes Americans are underestimating how much they need saved for retirement and that demographic trends may make it difficult for governments to fund programs like social security and Medicare. Overall the update discusses rising government debt levels, the risk of higher inflation, and challenges with funding entitlement programs.
SEIU demanded economic reforms following the 2008 financial collapse. The union protested large Wall Street bonuses paid after taxpayer bailouts. SEIU advocated for policies benefiting working families, including healthcare reform and the Employee Free Choice Act. The union also called for regulation of the private equity industry, citing job losses and debt loads imposed on acquired companies.
This document provides an overview of All Star Financial, an independent fee-only financial advisory firm. It discusses the firm's services, investment philosophy, and approach to managing client portfolios. Key points include:
1. All Star Financial provides personal and corporate financial planning, investment management, and tax services. They manage client assets using mutual funds, ETFs, stocks, and bonds.
2. The firm's investment approach focuses on reducing risk and volatility through strategic asset allocation and diversification. They emphasize keeping what you earn over maximizing returns.
3. Examples from past economic cycles and market downturns illustrate why diversification and staying the course are important strategies during volatile periods. Panicking and making
The document discusses the global crisis of legitimacy facing political and corporate elites in Europe and the United States. It argues that the financial crisis revealed perceived collusion between political and corporate interests, undermining public trust. This political crisis now threatens the stability of governments and international economic systems. The aftermath of such widespread distrust can last years and provide opportunities for other powers to gain influence. The document examines economic and political disruptions facing different countries and regions, as well as generational changes and the challenges of transitioning from the baby boomer era. It argues for new models of risk management that incorporate endogenous risk factors and liability-driven investing.
Central banks around the world have reduced interest rates to near or below zero in response to the 2008 financial crisis. This has increased money supply as central banks expand their balance sheets by purchasing bonds. Narrow money supply is rising but broad money is just starting to rise. If broad money rises sharply, inflation is likely to accelerate. However, economists are not forecasting rapid inflation. While central bank actions have increased money supply, quantitative easing does not directly increase private sector money holdings. Inflation is also impacted by fiscal policies and debt levels. Even low levels of inflation gradually reduce purchasing power over time.
Market Outlook - Financial Crisis & PolicyJayson Kim
1) A fundamental cause of the current financial crisis was a change in the banking business model that mixed credit and equity cultures. When this new model was combined with complex interactions from macro policies, regulations, taxation, and corporate governance changes, it resulted in the crisis.
2) Four key events in 2004 contributed to banks accelerating off-balance sheet mortgage securitization: 1) new US mortgage proposals, 2) increased regulation of Fannie Mae and Freddie Mac, 3) publication of the Basel II accord, and 4) changes to SEC regulation of investment banks.
3) One bank, Citi, is used as an example of how the transition from Basel I to Basel II created an arbitrage opportunity for
The document summarizes William Larkin Jr.'s presentation at an investment conference on analyzing the current bond market situation. Some key points made include:
1) Interest rates have fallen to historically low levels as the Fed pursues policies of financial repression to stimulate the economy. However, low rates may be creating a bond bubble.
2) The current macroeconomic environment is unique, with interconnected financial systems and the need for rapid changes to policies around issues like the national debt.
3) Bond strategies can no longer rely solely on buy-and-hold or passive indexing given low yields and risks if rates rise. Diversification across bond types and active management are needed.
4) Liquidity is
Viewpoint Newsletter from Clear View Wealth Advisors with a focus on the role of dividend-paying stocks and the inflation-deflation debate. Also includes links to the free financial roadmap tool.
The document provides an update from Agcapita on various economic issues in April 2010. It discusses the large fiscal deficits governments have incurred to deal with the financial crisis and how this has made governments insolvent. It argues that to finance deficits, governments will likely resort to inflation. It also notes Americans are underestimating how much they need saved for retirement and that demographic trends may make it difficult for governments to fund programs like social security and Medicare. Overall the update discusses rising government debt levels, the risk of higher inflation, and challenges with funding entitlement programs.
SEIU demanded economic reforms following the 2008 financial collapse. The union protested large Wall Street bonuses paid after taxpayer bailouts. SEIU advocated for policies benefiting working families, including healthcare reform and the Employee Free Choice Act. The union also called for regulation of the private equity industry, citing job losses and debt loads imposed on acquired companies.
This document provides an overview of All Star Financial, an independent fee-only financial advisory firm. It discusses the firm's services, investment philosophy, and approach to managing client portfolios. Key points include:
1. All Star Financial provides personal and corporate financial planning, investment management, and tax services. They manage client assets using mutual funds, ETFs, stocks, and bonds.
2. The firm's investment approach focuses on reducing risk and volatility through strategic asset allocation and diversification. They emphasize keeping what you earn over maximizing returns.
3. Examples from past economic cycles and market downturns illustrate why diversification and staying the course are important strategies during volatile periods. Panicking and making
The document discusses the global crisis of legitimacy facing political and corporate elites in Europe and the United States. It argues that the financial crisis revealed perceived collusion between political and corporate interests, undermining public trust. This political crisis now threatens the stability of governments and international economic systems. The aftermath of such widespread distrust can last years and provide opportunities for other powers to gain influence. The document examines economic and political disruptions facing different countries and regions, as well as generational changes and the challenges of transitioning from the baby boomer era. It argues for new models of risk management that incorporate endogenous risk factors and liability-driven investing.
Central banks around the world have reduced interest rates to near or below zero in response to the 2008 financial crisis. This has increased money supply as central banks expand their balance sheets by purchasing bonds. Narrow money supply is rising but broad money is just starting to rise. If broad money rises sharply, inflation is likely to accelerate. However, economists are not forecasting rapid inflation. While central bank actions have increased money supply, quantitative easing does not directly increase private sector money holdings. Inflation is also impacted by fiscal policies and debt levels. Even low levels of inflation gradually reduce purchasing power over time.
Market Outlook - Financial Crisis & PolicyJayson Kim
1) A fundamental cause of the current financial crisis was a change in the banking business model that mixed credit and equity cultures. When this new model was combined with complex interactions from macro policies, regulations, taxation, and corporate governance changes, it resulted in the crisis.
2) Four key events in 2004 contributed to banks accelerating off-balance sheet mortgage securitization: 1) new US mortgage proposals, 2) increased regulation of Fannie Mae and Freddie Mac, 3) publication of the Basel II accord, and 4) changes to SEC regulation of investment banks.
3) One bank, Citi, is used as an example of how the transition from Basel I to Basel II created an arbitrage opportunity for
The document summarizes William Larkin Jr.'s presentation at an investment conference on analyzing the current bond market situation. Some key points made include:
1) Interest rates have fallen to historically low levels as the Fed pursues policies of financial repression to stimulate the economy. However, low rates may be creating a bond bubble.
2) The current macroeconomic environment is unique, with interconnected financial systems and the need for rapid changes to policies around issues like the national debt.
3) Bond strategies can no longer rely solely on buy-and-hold or passive indexing given low yields and risks if rates rise. Diversification across bond types and active management are needed.
4) Liquidity is
2007 01 white presentation at barclays capital in florida 28 30 january 2007 ...William White
1) The document summarizes a presentation given by William White about globalization and the convergence of inflation rates. It discusses how inflation has fallen globally and become less volatile. It also explores several potential explanations for these trends, including effective central bank policy, globalization of markets, and the "savings glut" hypothesis.
2) The presentation is divided into four parts. The first discusses the facts about declining inflation and volatility worldwide. The second evaluates alternative explanations for these trends. The third considers prospects for the future and potential financial imbalances. The fourth discusses implications for monetary policy.
3) In conclusion, the presentation argues that no single factor can fully explain recent inflation trends. Rather, a combination of forces, including global
Microsoft Word Stabilizingtransfers2 6 02 RosenblattG Garcia
This document summarizes a paper examining how intergovernmental transfers can stabilize fiscal burdens across levels of government during economic fluctuations. It discusses conditions where stabilizing transfers are most appropriate, including when subnational governments face credit constraints. The document analyzes fiscal performance in Argentina, Brazil, Colombia, and Mexico during recent economic cycles, focusing on Argentina and Colombia which have rules stabilizing transfers. It finds stabilizing transfers can complement national and subnational fiscal rules by helping manage boom-bust cycles in developing country contexts.
This document discusses options for managing systemic banking crises. It argues that the ongoing financial crisis results from a structural failure of prioritizing efficiency over diversity and resilience in the monetary and financial systems. Conventional solutions like nationalizing toxic assets or banks only address symptoms and not the underlying causes. The document proposes complementing conventional currencies with alternative currencies that are designed to increase money availability for exchange and link unused resources with unmet needs. These complementary currencies could help stabilize the economy and ensure future crises are avoided.
Minimum Wage and Negative Income Tax as Means of Poverty AlleviationElad Wind
The document discusses minimum wage and negative income tax as means of poverty alleviation. It argues that minimum wage increases unemployment and does not effectively help the poor. It proposes negative income tax as a better alternative, where the government provides direct cash payments to low-income individuals and families. Experiments with negative income tax in the US in the 1960s and 70s found it reduced work incentives but was more efficient than traditional welfare programs.
This document provides background on the formation of the Small Business Administration (SBA) through the Small Business Act of 1953. It discusses how fear of unemployment, the decline of small farming, and the rise of chain stores contributed to a problem definition of protecting the "little guy." This opened a policy window during Eisenhower's administration for the convergence of proposals to aid small business. The document outlines two competing narratives around the SBA - as a nurturing institution helping disadvantaged businesses compete, or as "Big Brother" government overreach. It provides examples of both perspectives and questions if the SBA's goals have changed over time.
The document summarizes the events that led to the 2008 financial crisis. Cheap money policies by the Federal Reserve encouraged risky lending. Mortgage loans were given to high-risk borrowers and new financial instruments spread risk throughout the system. When the housing bubble burst, the crisis spread globally as losses mounted. The document provides tips for surviving the crisis such as reducing debt, investing for the long term in necessities, and staying informed about market conditions.
The document discusses perceptions of the US job market lagging behind the improving numbers. While Michigan and parts of the country are still thought of as struggling, Michigan added over 25,000 more jobs than New York in the last year and its unemployment rate has dropped 3 percentage points. The recovery is labeled as weak but the economy has added an average of 240,000 jobs per month over the last four months, higher than during the 2003-2007 expansion. Perceptions of the job market lag behind the improving statistics.
Since the downgrade of the US does not come as a surprise to adherents of the Austrian School of Economics let's discuss something else. Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with over $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
The global financial crisis began in 2007 due to excessive government spending on wars, which increased public debt beyond $4 trillion between 2002-2008. This overburdened the US financial system. The collapse of the real estate market and mortgage institutions like Fannie Mae further deteriorated the crisis. Structural issues that exacerbated the crisis included speculation, quick profit-seeking behaviors, a shift to unproductive financial sectors, dependence on interest-based loans, securitization, and debt trading. Short-term solutions proposed propping up failing banks and stimulating the economy. Long-term solutions suggested new financial regulations and oversight, restricting speculative transactions, limiting securitization, and banning debt trading. Islamic finance principles prohibit interest and promote equity-based
110
Bank credit expansion
100
Lender of last
resort
China
90
80
Chinese government
70
60
45
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: BIS
IV.2 Lessons from history
1. Crises are inevitable in a debt-based monetary system with fractional reserve banking
2. Excessive credit growth and asset bubbles will eventually burst
3. A lender of last resort is needed to prevent liquidity crises from turning into solvency crises
4. Regulation is needed to limit the build-up of excessive risks in the financial
1. The document discusses the failures of development policies like the Washington Consensus and financial globalization due to their reliance on first-best thinking when second-best thinking is required given real-world market and institutional failures.
2. It argues policy should be based on second-best thinking and target "binding constraints" through selective, sequential, and context-specific reforms rather than assuming all distortions can be removed at once.
3. Financial globalization failed because capital markets operate under significant market imperfections that cannot be fully addressed, and capital inflows can cause overvaluation and move exchange rates in ways that hinder development.
The document discusses Joseph Stiglitz's view that the IMF pursues objectives beyond its original mandate of enhancing global stability, namely advancing the interests of the financial community. Stiglitz argues the IMF is dominated by market fundamentalism and fails to address instances where markets fail. He provides examples of inconsistencies in IMF policies, such as intervening to sustain exchange rates while opposing intervention elsewhere, and spreading economic crises rather than containing them. Stiglitz asserts the IMF prioritizes bailing out Western creditors over countries' social obligations, weakening incentives for responsible lending and risk-taking.
The document summarizes Charles Lindblom's argument that business has a "privileged position" that gives it structural influence over governments without significant lobbying. It discusses three structural mechanisms Lindblom asserts give business influence: 1) an "automatic punishing recoil" when business disapproval impacts the economy and voters, 2) legal rules that require governments to induce rather than command business, and 3) limited liability under corporate law. However, the document also notes that some scholars argue business influence is more contingent and negotiated based on public opinion and ideological commitments of politicians.
Credibility Of Optimal Monetary Delegationrafaeldepp
This document summarizes an academic article from The American Economic Review about the credibility of optimal monetary policy delegation. The key points are:
1) There is a dynamic inconsistency problem with discretionary monetary policy, as governments have an incentive to create surprise inflation.
2) Some theories propose delegating monetary policy to an independent central bank to overcome this problem. However, the document argues delegation does not fully resolve the issue if it can be changed without costs.
3) The document presents a model where monetary delegation is a strategic choice. It finds that "reappointment costs" for changing delegation improve outcomes but do not fully resolve the dynamic inconsistency. Optimal policy is also less credible with these costs.
The change in economy 2008-2011 created structural tensions that needed to be addressed, said former FED chairman Paul Volcker. Industrial complex faces dramatic changes in modus operadi. This particularly concerns value creation activities and entrepreneurship. Fostering entrepreneurship today means creation of a completely new innovation infrastructure and paradigm to support startups. A view on what is coming next is presented in this document.
Government, The Economy and We, The Peoplecoryhelene
We are living in a time of unprecedented public interest in the relationship between government and the economy. Americans are attentive--deeply concerned about the impact of the economic downturn and its implications for the future. But they are also wary. While they want government action, they are harshly critical of high profile steps such as bailouts, and nervous about spending and the deficit. Making real progress on a whole host of important economic policies, from reshaping Wall Street regulations to investing in the jobs and economy of the future, will require a more active role for government than the U.S. has seen in decades. Building and sustaining public will to support this engagement by the public sector is an underlying and foundational challenge.
This research summary offers an overview of insights and recommendations for creating a new public conversation about the role of government in the economy.
This document discusses the causes and effects of financial crises and potential reforms. It outlines several types of financial crises including banking crises, economic crises, capital market bubbles, and currency crises. Some of the key causes mentioned are strategic complementarities in financial markets, leverage, and asset-liability mismatches. The document also discusses some reforms that could help stabilize financial systems such as restructuring regulations, improving corporate governance, and strengthening legal infrastructure.
The causes of economic events, as opposed to the often more
head-line grabbing symptoms, are frequently overlooked by the
mainstream financial media. So while recent public opinion has
seen virtually a consensus of hostility towards the symptom of
financial sector malfeasance, as yet there does not seem to be a
coherent understanding about the cause of the financial crisis.
The social consequences of economic globalization in South Korea included increased casualization of the labor force and a weakening of social safety nets. The Asian financial crisis of the 1990s required South Korea to restructure its economy with help from a $57 billion IMF bailout package. This package mandated neoliberal reforms like labor market deregulation that undermined workers' economic security. While the government tried to balance labor flexibility with stronger social programs, employment flexibility prevailed, leaving fewer protections for non-regular workers.
Gsri having itall_financialliteracy_full_finalLisa Jones
This summary provides an overview of a report from the Girl Scout Research Institute on girls and financial literacy:
- The report surveyed over 1,000 girls ages 8-17 and their parents to better understand girls' financial literacy, confidence, attitudes, and experiences with money. It found that most girls expect to be financially independent and empowered in the future, but still have gaps in their financial knowledge.
- Girls are optimistic about achieving educational and career goals but lack confidence in financial decision-making. They know basic money management like saving but less about credit, debt, and long-term investing.
- Parents, especially financially confident parents, are the primary influence on girls' financial literacy. They can help fill
2007 01 white presentation at barclays capital in florida 28 30 january 2007 ...William White
1) The document summarizes a presentation given by William White about globalization and the convergence of inflation rates. It discusses how inflation has fallen globally and become less volatile. It also explores several potential explanations for these trends, including effective central bank policy, globalization of markets, and the "savings glut" hypothesis.
2) The presentation is divided into four parts. The first discusses the facts about declining inflation and volatility worldwide. The second evaluates alternative explanations for these trends. The third considers prospects for the future and potential financial imbalances. The fourth discusses implications for monetary policy.
3) In conclusion, the presentation argues that no single factor can fully explain recent inflation trends. Rather, a combination of forces, including global
Microsoft Word Stabilizingtransfers2 6 02 RosenblattG Garcia
This document summarizes a paper examining how intergovernmental transfers can stabilize fiscal burdens across levels of government during economic fluctuations. It discusses conditions where stabilizing transfers are most appropriate, including when subnational governments face credit constraints. The document analyzes fiscal performance in Argentina, Brazil, Colombia, and Mexico during recent economic cycles, focusing on Argentina and Colombia which have rules stabilizing transfers. It finds stabilizing transfers can complement national and subnational fiscal rules by helping manage boom-bust cycles in developing country contexts.
This document discusses options for managing systemic banking crises. It argues that the ongoing financial crisis results from a structural failure of prioritizing efficiency over diversity and resilience in the monetary and financial systems. Conventional solutions like nationalizing toxic assets or banks only address symptoms and not the underlying causes. The document proposes complementing conventional currencies with alternative currencies that are designed to increase money availability for exchange and link unused resources with unmet needs. These complementary currencies could help stabilize the economy and ensure future crises are avoided.
Minimum Wage and Negative Income Tax as Means of Poverty AlleviationElad Wind
The document discusses minimum wage and negative income tax as means of poverty alleviation. It argues that minimum wage increases unemployment and does not effectively help the poor. It proposes negative income tax as a better alternative, where the government provides direct cash payments to low-income individuals and families. Experiments with negative income tax in the US in the 1960s and 70s found it reduced work incentives but was more efficient than traditional welfare programs.
This document provides background on the formation of the Small Business Administration (SBA) through the Small Business Act of 1953. It discusses how fear of unemployment, the decline of small farming, and the rise of chain stores contributed to a problem definition of protecting the "little guy." This opened a policy window during Eisenhower's administration for the convergence of proposals to aid small business. The document outlines two competing narratives around the SBA - as a nurturing institution helping disadvantaged businesses compete, or as "Big Brother" government overreach. It provides examples of both perspectives and questions if the SBA's goals have changed over time.
The document summarizes the events that led to the 2008 financial crisis. Cheap money policies by the Federal Reserve encouraged risky lending. Mortgage loans were given to high-risk borrowers and new financial instruments spread risk throughout the system. When the housing bubble burst, the crisis spread globally as losses mounted. The document provides tips for surviving the crisis such as reducing debt, investing for the long term in necessities, and staying informed about market conditions.
The document discusses perceptions of the US job market lagging behind the improving numbers. While Michigan and parts of the country are still thought of as struggling, Michigan added over 25,000 more jobs than New York in the last year and its unemployment rate has dropped 3 percentage points. The recovery is labeled as weak but the economy has added an average of 240,000 jobs per month over the last four months, higher than during the 2003-2007 expansion. Perceptions of the job market lag behind the improving statistics.
Since the downgrade of the US does not come as a surprise to adherents of the Austrian School of Economics let's discuss something else. Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with over $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
The global financial crisis began in 2007 due to excessive government spending on wars, which increased public debt beyond $4 trillion between 2002-2008. This overburdened the US financial system. The collapse of the real estate market and mortgage institutions like Fannie Mae further deteriorated the crisis. Structural issues that exacerbated the crisis included speculation, quick profit-seeking behaviors, a shift to unproductive financial sectors, dependence on interest-based loans, securitization, and debt trading. Short-term solutions proposed propping up failing banks and stimulating the economy. Long-term solutions suggested new financial regulations and oversight, restricting speculative transactions, limiting securitization, and banning debt trading. Islamic finance principles prohibit interest and promote equity-based
110
Bank credit expansion
100
Lender of last
resort
China
90
80
Chinese government
70
60
45
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: BIS
IV.2 Lessons from history
1. Crises are inevitable in a debt-based monetary system with fractional reserve banking
2. Excessive credit growth and asset bubbles will eventually burst
3. A lender of last resort is needed to prevent liquidity crises from turning into solvency crises
4. Regulation is needed to limit the build-up of excessive risks in the financial
1. The document discusses the failures of development policies like the Washington Consensus and financial globalization due to their reliance on first-best thinking when second-best thinking is required given real-world market and institutional failures.
2. It argues policy should be based on second-best thinking and target "binding constraints" through selective, sequential, and context-specific reforms rather than assuming all distortions can be removed at once.
3. Financial globalization failed because capital markets operate under significant market imperfections that cannot be fully addressed, and capital inflows can cause overvaluation and move exchange rates in ways that hinder development.
The document discusses Joseph Stiglitz's view that the IMF pursues objectives beyond its original mandate of enhancing global stability, namely advancing the interests of the financial community. Stiglitz argues the IMF is dominated by market fundamentalism and fails to address instances where markets fail. He provides examples of inconsistencies in IMF policies, such as intervening to sustain exchange rates while opposing intervention elsewhere, and spreading economic crises rather than containing them. Stiglitz asserts the IMF prioritizes bailing out Western creditors over countries' social obligations, weakening incentives for responsible lending and risk-taking.
The document summarizes Charles Lindblom's argument that business has a "privileged position" that gives it structural influence over governments without significant lobbying. It discusses three structural mechanisms Lindblom asserts give business influence: 1) an "automatic punishing recoil" when business disapproval impacts the economy and voters, 2) legal rules that require governments to induce rather than command business, and 3) limited liability under corporate law. However, the document also notes that some scholars argue business influence is more contingent and negotiated based on public opinion and ideological commitments of politicians.
Credibility Of Optimal Monetary Delegationrafaeldepp
This document summarizes an academic article from The American Economic Review about the credibility of optimal monetary policy delegation. The key points are:
1) There is a dynamic inconsistency problem with discretionary monetary policy, as governments have an incentive to create surprise inflation.
2) Some theories propose delegating monetary policy to an independent central bank to overcome this problem. However, the document argues delegation does not fully resolve the issue if it can be changed without costs.
3) The document presents a model where monetary delegation is a strategic choice. It finds that "reappointment costs" for changing delegation improve outcomes but do not fully resolve the dynamic inconsistency. Optimal policy is also less credible with these costs.
The change in economy 2008-2011 created structural tensions that needed to be addressed, said former FED chairman Paul Volcker. Industrial complex faces dramatic changes in modus operadi. This particularly concerns value creation activities and entrepreneurship. Fostering entrepreneurship today means creation of a completely new innovation infrastructure and paradigm to support startups. A view on what is coming next is presented in this document.
Government, The Economy and We, The Peoplecoryhelene
We are living in a time of unprecedented public interest in the relationship between government and the economy. Americans are attentive--deeply concerned about the impact of the economic downturn and its implications for the future. But they are also wary. While they want government action, they are harshly critical of high profile steps such as bailouts, and nervous about spending and the deficit. Making real progress on a whole host of important economic policies, from reshaping Wall Street regulations to investing in the jobs and economy of the future, will require a more active role for government than the U.S. has seen in decades. Building and sustaining public will to support this engagement by the public sector is an underlying and foundational challenge.
This research summary offers an overview of insights and recommendations for creating a new public conversation about the role of government in the economy.
This document discusses the causes and effects of financial crises and potential reforms. It outlines several types of financial crises including banking crises, economic crises, capital market bubbles, and currency crises. Some of the key causes mentioned are strategic complementarities in financial markets, leverage, and asset-liability mismatches. The document also discusses some reforms that could help stabilize financial systems such as restructuring regulations, improving corporate governance, and strengthening legal infrastructure.
The causes of economic events, as opposed to the often more
head-line grabbing symptoms, are frequently overlooked by the
mainstream financial media. So while recent public opinion has
seen virtually a consensus of hostility towards the symptom of
financial sector malfeasance, as yet there does not seem to be a
coherent understanding about the cause of the financial crisis.
The social consequences of economic globalization in South Korea included increased casualization of the labor force and a weakening of social safety nets. The Asian financial crisis of the 1990s required South Korea to restructure its economy with help from a $57 billion IMF bailout package. This package mandated neoliberal reforms like labor market deregulation that undermined workers' economic security. While the government tried to balance labor flexibility with stronger social programs, employment flexibility prevailed, leaving fewer protections for non-regular workers.
Gsri having itall_financialliteracy_full_finalLisa Jones
This summary provides an overview of a report from the Girl Scout Research Institute on girls and financial literacy:
- The report surveyed over 1,000 girls ages 8-17 and their parents to better understand girls' financial literacy, confidence, attitudes, and experiences with money. It found that most girls expect to be financially independent and empowered in the future, but still have gaps in their financial knowledge.
- Girls are optimistic about achieving educational and career goals but lack confidence in financial decision-making. They know basic money management like saving but less about credit, debt, and long-term investing.
- Parents, especially financially confident parents, are the primary influence on girls' financial literacy. They can help fill
This slide was designed for non-commercial purposes.
이 슬라이드는 2012 사회적경제 아이디어 대회에서 최우수상(2013.03.29.)을 받은 '비영리IT지원센터'의 발표자료의 편집본입니다.
이 자료는 비영리IT지원센터에서 재편집되었습니다. (2013.12.23.)
비영리IT지원센터 페이스북 페이지 (https://www.facebook.com/npoitcenter)
The document provides an acknowledgement and thanks to various people who helped with a research project on Nokia's marketing strategy in India. It then outlines the table of contents for the research report, which includes an introduction, company overview of Nokia, research objectives, design and data collection, data analysis and interpretation, conclusions, and type of report. Finally, it provides an executive summary that gives high-level details about the scope of the study, methodology used including a questionnaire, data analysis through charts, findings, and conclusions with recommendations.
5 Tips to Make Incentives Meaningful and Retain EmployeesGusto
Want to learn how the best companies use corporate perks? Join BambooHR and ZenPayroll and find out how to make your employee incentives more meaningful and retain employees.
Marketing Investment Decision Analysis, LLC combines decision analysis and analytics to help clients with marketing investment decisions. The founder has a background in marketing analytics and consulting and has more recently been studying decision analysis. The company leverages both statistical marketing mix modeling and decision analysis techniques to address clients' complex marketing investment questions and pain points. Decision analysis focuses more on human judgment and identifying key uncertainties, while analytics relies more heavily on large amounts of data, but the company sees value in integrating both approaches.
This document promotes a cooking community that shares recipes and cooking techniques online. Members can join weekly to try new recipes, bake desserts and appetizers, and learn from guest chefs. It encourages interacting by sharing secret recipes through email, photos, or the online community forum, and creating new dishes, techniques, or decorating styles for others to enjoy. The community also explores new kitchen technologies and visits venues for wine tastings and seasonal food samples.
Srikanth Reddy
S.No. DSM Name Coaching Days Non Sales Sept. Dec. Remark
with DSM in priority Status Status s
C3/Actual
1 Shaik Sayed Pasha 14/4 %Missed Drs 8 1 Overal Imprv
in Priorities
taken up
2 Niranjan 17/11 11.5 12
Call rate Achieved
3 G.Mahender 20/38 Avg Montlhy POB 0.05 0.13
4 Yadagiri Reddy D 17
Sistem akuntansi terdiri dari serangkaian prosedur dan rekaman yang saling terkait untuk mengelola data keuangan perusahaan, menghasilkan laporan untuk manajemen, pemegang saham, dan kreditur guna mengevaluasi kinerja operasional perusahaan. Komponen utamanya meliputi sistem akuntansi utama, penjualan, pembelian, penggajian, produksi, biaya, dan persediaan.
The document outlines different topics related to politics and economics, including political systems, power structures, and economic models. It discusses concepts such as democracy, authoritarianism, capitalism, and socialism. Key factors of modern economies are also examined, such as the shift to service sector jobs, rising income inequality, decreasing union participation, and the globalization of markets.
{bit.ly/ssT2IE} Lecture at IBA 5 Dec 2022 on how we can move to an interest-free economy. Explains that Islamic Economy requires a lot more than zero interest. For a just economy, we need to ensure equal opportunities for education, provision of basic needs, and jobs for all who can make productive contributions to society. Creating such an economy requires a financial system radically different from capitalism - one which invests in socially profitable investments, rather than privately profitable ones. Many specific details of how we could create such a system are discussed.
Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with almost $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios. Agcapita publishes a monthly agriculture briefing.
The document summarizes key points from a presentation about a book that takes a free-market perspective on the 2008 financial crisis. It defines relevant economic terms and outlines the book's argument that government intervention through low interest rates caused the boom, and bailouts will prolong the bust by preventing necessary market adjustments. The presentation questions some assumptions of free markets and identifies roles for government in addressing issues like natural monopolies and environmental protection. It also provides a deeper analysis of factors influencing the money supply and the impacts of fiat versus commodity-backed currencies.
Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with over $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
Daniel Currie, VP of Editorial Content, gave a presentation on the problems of big government. He outlined five key problems: 1) more government intervention leads to more spending and higher inflation; 2) unintended consequences follow further intervention attempts to control the economy; 3) the huge US debt of over $16 trillion presents problems if other nations lose faith in the debt; 4) government causes business cycles by interfering with interest rates and money supply; 5) big government enables "collective corruption" where the wealthy benefit most from policies while inflation reduces benefits for the poor. The presentation was followed by a Q&A session.
Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with over $100 million in assets under management. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
Alternative Currencies: The Solution to the Economic Crisis?Brian McConnell
"What is now being called the 'Great Recession' shows no sign of ending either in the U.S. or elsewhere in the world. What then should be done? In many locations people are increasingly turning to creation of alternative currencies. But can these really be effective?
This and many other questions will be addressed by Richard C. Cook, author and retired U.S. Treasury analyst."
As a resident of Roanoke and director of the Peace Spiritual Center, Richard brings a wealth of information and an open-eyed critique of the most discussed solutions as well as examples from both ancient and recent history.
This document summarizes key aspects of different economic systems and how modern economies operate. It discusses the three basic economic questions, traditional command, and market economies. It then explains mixed economies and how most countries emphasize elements of different systems. The circular flow model is presented to illustrate how market economies function through the exchange of resources and payments between consumers and producers.
The document discusses different economic systems and how modern economies operate. It defines the three basic economic questions as what to produce, how to produce, and for whom to produce. It then describes traditional, command, and market economies and how modern economies have elements of multiple systems. Most countries emphasize one system such as the US emphasizing market elements, while others incorporate more command aspects like some European nations. Globalization has also increased interconnectedness between world economies.
Western governments are hopelessly addicted to deficit financing while refusing to address looming funding issues - with apologies to the embarrassingly foolish Angela Merkel, politicians can no more successfully “battle” the markets than you and I can successfully “battle” gravity. Petrocapita is an investment trust built around the premise that demand for energy will continue to move prices higher over the long-term. Petrocapita was created to allow investors to add professionally managed oil & gas assets directly to their portfolios.
Creating an Islamic Economy requires much more than setting interest to Zero. Within a financial capitalist system currently dominating the world, zero-interest rates will crash the system. They also are strongly contrary to the interests of the financial rentier class, and will be strongly resisted. Many specific and general ideas on how to create a just and equitable Islamic Economy are discussed in this talk , given in Doha Qatar at HBKU on 25th Jan.
The document discusses the history and role of the Federal Reserve, including how it responded during the financial crisis by lowering interest rates and purchasing mortgage and Treasury securities to stabilize markets. While some argue the Fed should be ended due to concerns over its private ownership and lack of audits, most experts agree that the Fed plays an important role in the economy and its quantitative easing programs have helped support economic recovery.
A lecture delivered in 2010/11. Why the economy will collapse is a warning to all investors who speculate on stocks and shares, and other forms of speculation. It is far better to invest directly into CASH & PROFITS.
Economic environment – factors
The economic environment consists of microeconomic and macroeconomic factors.
Microeconomic factors
The microeconomic environment refers to things that happen at the individual company or consumer level.
Microeconomic factors do not affect the whole economy. Below are some microeconomic factors that may influence a business:
• Competitors.
• Demand.
• Market size.
• Suppliers.
• Supply.
• How you supply your goods, i.e., the distribution chain. For example, through retail stores, distributors, the Internet, etc.
Macroeconomic factors
The macroeconomic environment, on the other hand, refers to things that affect the entire economy. Macroeconomics is concerned with general or large-scale economic factors, such as:
• Unemployment
• Inflation.
• Interest rates.
• GDP growth. GDP stands for Gross Domestic Product. In other words, is the economy in recession, is it booming, etc.
• Taxes.
• Exchange rates, i.e., how much currencies are worth in relation to one another.
• How much discretionary income consumers have, i.e., income after paying tax, social security, etc.
• Levels of consumer confidence.
• Savings rates.
Business people cannot control their economic environment. However, they can evaluate conditions in the marketplace before deciding whether to proceed with a plan or project.
In this context, the term ‘marketplace ‘means the same as ‘market‘ in its abstract sense.
________________________________________
Economic environment vs. environmental economics
Do not confuse the term ‘economic environment’ with ‘environmental economics.’ Although they sound similar, their meanings are quite different.
Environmental economics, a sub-field of economics, is all about environmental issues. Since the second half of the last century, environmental economics has become an increasingly popular topic.
Environmental economics looks at the economic effects of local or national environmental policies across the globe. Particular issues include the costs and benefits of alternative environmental policies that deal with water quality, air pollution, and global warming.
Components of Economic Environment
Role of Private and Public sector matters a lot in order to get investment. Because when the investors invest money, they see industry growth and the role of private sectors in the economy.
Rate of growth of GDP, GNP, and Per Capita Income, When the gross domestic product of the economy increases, it brings investment in the economy and show the growth of the economy to the investors.
Transport and Communication System helps to increase the growth of the economy. When the transport system will be good, it will increase the finished goods. When the communication system will effective, it will connect more people and will give them opportunities to do more business.
International Debt also matters in the growth of the economy. if the economy has more international debt, then the investors afraid to invest in the economy and vice-versa
Lecture on public finance ( abridged version)Regmi Milan
The document summarizes several lectures on public finance:
1. The first lecture introduced students to the course and provided an overview of public finance concepts like expenditure, revenue, deficit, and the roles of foreign aid, borrowing, and monetary policy.
2. The second lecture discussed a student field visit experience to relate practical planning, budgeting, monitoring, and evaluation skills to the subject.
3. Subsequent lectures covered topics like public versus private goods, the role of government in the Great Depression, theories of public expenditure, canons of public expenditure, and Wagner's Law and the Wiseman-Peacock hypothesis about increasing public activities over time.
Lecture on public finance ( abridged version)Regmi Milan
The document summarizes several lectures on public finance:
1. The first lecture introduced students to the course and provided an overview of public finance concepts like expenditure, revenue, deficit, and the role of the central bank.
2. The second lecture discussed a student field visit experience to relate it to public finance topics like planning, budgeting, monitoring, and evaluation.
3. Wagner's law and the Wiseman-Peacock hypothesis were introduced to explain the tendency of increasing public expenditure over time due to factors like expanding traditional state functions and responding to social disturbances.
4. Several canons of public expenditure were outlined, emphasizing judicious and beneficial use of funds.
The Great Depression - Presentation (Macroeconomics Perspective)Arjun Parekh
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, originating in the United States. The document discusses several key causes and events of the Great Depression including the stock market crash of 1929, a decline in the money supply, policy decisions like the Smoot-Hawley Tariff Act of 1930, and the effects of abandoning the gold standard. John Maynard Keynes advocated for policies like deficit spending to stimulate the economy in response to the Depression. Roosevelt's New Deal programs attempted to address unemployment and stabilize the banking system through acts like the National Industrial Recovery Act.
This document summarizes two key housing reports released monthly in the United States: the New Residential Construction Report and S&P's Case-Shiller Index. The New Residential Construction Report includes building permits and housing starts and completions. The Case-Shiller Index tracks changes in residential real estate values using a repeat sales method and calculates national, 10-city, and 20-city home price indices. It also lists the metropolitan areas included in the 10-city and 20-city composites.
This document provides an overview of SQL (Structured Query Language) including what it is, practical applications, and basic syntax. SQL is a programming language used to access and manipulate data stored in relational databases. It allows users to easily manage data through commands to select, update, and insert records. The document discusses how SQL is used with relational database systems like MySQL and Microsoft Access. It also provides examples of basic SQL syntax for selecting, updating, and inserting data.
The document discusses the Consumer Price Index (CPI), which is a monthly report published by the Bureau of Labor Statistics that measures the average change in prices paid by urban consumers for consumer goods and services. It aims to be a cost-of-living measure and tracks price changes across two population groups: all urban consumers and urban wage earners. The CPI data is weighted based on relevance as determined by the Consumer Expenditure Survey. The CPI is used as an economic indicator, to adjust economic data for inflation, for income and wage bargaining, and to index over 80 million Social Security payments and 27 million school lunches.
The document summarizes a student presentation for the Undergraduate Economics Association on China's currency policy. It provides an overview of key economic concepts, the history of China's exchange rate policy including a dual exchange system prior to 1994 and pegging to the US dollar afterwards. It discusses China's transition to a managed float in 2005-2008 and resumption of currency appreciation in 2010. Both sides of the debate around China's currency valuation are presented, including arguments that China manipulates its currency as well as counterarguments. Potential effects of Chinese currency appreciation are also addressed.
This document provides an overview and analysis of industrial production, capacity utilization, and consumer sentiment for week 3. It discusses the key indicators for industrial production and capacity utilization, including their classification and historical averages. The document also reviews consumer sentiment data from the University of Michigan survey and release dates. Finally, it previews important economic reports and central bank meetings to watch in the following week from Japan, the UK, and the US.
The document promotes an undergraduate economics association that aims to enhance economics education outside the classroom and provide professional development opportunities. It invites students to the first meeting of the Boston University Trading Club's fixed income group to learn how economic data impacts markets. It also encourages interested students to email the contacts by Tuesday if wanting to join or if interested in being a co-fund manager for the club, requiring a strong desire to learn though no prior experience.
This document is a macro analysis report from the Undergraduate Economics Association discussing the Consumer Price Index (CPI). It defines the CPI as a monthly measure of price changes for consumer goods and services produced by the Bureau of Labor Statistics. The CPI tracks two population groups and weights items based on spending from the Consumer Expenditure Survey. It is used as an economic indicator, to adjust other economic data for inflation, and in income and wage negotiations.
The Consumer Price Index (CPI) for December 2013 showed a 0.3% increase from the previous month and a 1.5% increase from the previous year, both slightly higher than consensus estimates. Excluding food and energy prices, which tend to be volatile, the "core" CPI rose 0.1% for the month and increased 1.7% from the prior year, matching consensus forecasts.
The document outlines the first meeting of the Undergraduate Economics Association at Boston University on January 28, 2014. The mission of the association is to develop student interest in economics through academic, professional, and social activities. Key activities mentioned include guest speakers, articles, blogging, events like case competitions, and using social media and a website to connect students. Opportunities for student involvement include writing articles, participating in the macroeconomic analysis group and student presentations, and attending the economics lunch.
The Undergraduate Economics Association is holding several events on November 17th, including an Econ Talk at the GSU Starbucks at noon, a Writing Committee and STATA workshop from 1-2pm in CAS 322, and a lecture from Prof. Todd Idson on income inequality and mobility in the United States. The Association is also accepting article submissions for a competition by emailing uea@bu.edu, jparam@bu.edu or spetitti@bu.edu.
The document is the constitution for the Boston University Undergraduate Economics Association. It outlines the association's mission to develop students' interests in economics through social, academic and professional means. It describes the executive board positions and their responsibilities in managing activities like general meetings, guest speakers, and an economics journal. Core activities include a website for student articles and blogs, social media presence, and events. Policies address plagiarism and representation. Contact information is provided.
The document summarizes announcements and presentations from a meeting of an undergraduate economics association. It includes announcements about upcoming events on November 10th, articles to be discussed, and a presentation on Massachusetts environmental policy and the impacts of climate change. The presentation discusses the Regional Greenhouse Gas Initiative carbon cap-and-trade program, projected sea level rise and flooding risks, impacts of extreme weather on insurance losses, and transportation emissions reduction goals for Massachusetts.
The document summarizes a lecture given by Professor Vivien A. Schmidt from Boston University titled "Can the EU survive the EUROzone Crisis?". The lecture discusses whether the crisis stems more from economic or political failures and analyzes different perspectives on the problems and solutions. It examines issues like private versus public debt, austerity policies, lack of investment, and political leadership. The lecture concludes that the crisis involves problems with EU structures, policies, institutions and politics and that the EU needs better leadership, new ideas, reforms, and more democracy to survive.
The document summarizes announcements from an Undergraduate Economics Association meeting. It announces upcoming events, including an Econ Talk on October 6th, a writing and STATA workshop also on October 6th, and the deadline for the UEA article competition being October 22nd. It also lists opportunities, including positions with Mathematica Policy Research and the City of Boston. Finally, it advertises an upcoming UEA event about resumes, cover letters, and CVs to be presented by Sydney Simpson and Zach Costello.
The document summarizes the first meeting of the Undergraduate Economics Association at Boston University. It announces upcoming events like an economics talk, writing workshops, and article competitions. It also lists opportunities for sales and field programs. The mission of the association is to develop students' interests in economics through social, academic and professional means. Students are encouraged to get involved by writing articles, attending workshops and events.
The document summarizes the first meeting of the Undergraduate Economics Association at Boston University. It announces upcoming events including an Econ Talk on September 15th and the first STATA workshop. It outlines the association's mission to develop students' interests in economics and lists strategies like guest speakers, a journal, and networking events.
This lecture discusses the economics of energy and bioethanol. It introduces bioethanol as an alternative fuel and covers its current regulation and costs. A key issue discussed is the interconnectedness of the food and fuel markets, as increased demand for crops from the bioethanol industry can raise food prices. The lecture presents arguments from both a supply side and demand side perspective on how this effect occurs and the resulting higher food and lower gas prices. It questions whether the social costs of pollution are offset by bioethanol and what other alternatives may exist.
This document outlines the agenda for the first general meeting of the Undergraduate Economics Association at Boston University. It introduces the organization, describing it as a platform for students interested in economics to develop socially, academically, and professionally. It details the association's leadership team and explains that the group runs a website, hosts social media accounts, general meetings with guest speakers, and article competitions. It encourages students to get involved by writing articles, attending events, and applying for columnist positions. The document concludes with contact information.
This document discusses the role and usefulness of economic theory. It argues that theories are always false approximations of reality since they necessarily ignore certain details. However, theories can still be useful for creating a common language to discuss concepts, checking intuitions, and generating unexpected insights and new research directions. The key question about a theory is whether it is useful rather than whether it is literally true. Theories aim to simplify reality in a way that facilitates understanding, even if this means ignoring certain real-world complexities.
The document announces upcoming events for the Undergraduate Economics Association, including guest speakers from BU and the OECD. Applications are being accepted for positions on the executive board, with responsibilities and qualifications outlined for the President and other officer roles. The application process and timeline is also described.
4. Problems with Big Governments
The following views and opinions do not represent
the BU UEA and the perspectives of its members.
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5. The Definition of ‘The State’
Max Weber: Douglass North & John John A. Hall & G. J. Ikenberry
Wallis
A state has a 'monopoly of 1) The state organizes other 1) Set of institutions
the legitimate use of physical organizations. manned by own
force in the enforcement of 2) States support private personnel.
order.‘ ordering of relationships. 2) Center of Territory.
3) Monopolizes rule making.
Politics as a Vocation Defining the State The State
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6. Brief History of the State
• First real recognizable state: Mesopotamia, 3000 BC
How the State Formed:
• Marxists and Leninists claim ‘The State’ was created to
enforce social classes.
• Oppenheimer claimed military conquests on settled
agricultural population.
Other Theories:
• Ecological: Farmers tied to the land close to rivers. Easy prey for
coercion.
• Religious: Coercion accepted because it was for the divine.
Responded to demands from supernatural.
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7. The Problems of Big Government
1)Money
2)Continuous Intervention
3)Soaring Debt!
4)Business Cycles
5)Collective Corruption
"If a government were put in charge of the Sahara Desert, within five years they’d
have a shortage of sand." - Milton Friedman, PhD, Nobel Laureate
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8. Money
Inflation
Classical Definition: The Increase in the
Money Supply
Contemporary: Increase in the general price
level of a basket of goods in the country over
a specific time.
Examples:
Song Dynasty (Jiaozie)
Continental Congress (around 1781)
Stockholm Banco.
Gresham’s Law Provided by St. Louis Fed: research.stlouisfed.org
“Bad Money Drives out Good Money”
OR
“Money overvalued artificially by government
will drive out of circulation artificially
undervalued money” – M. Rothbard (What
Has Government Done to Our Money)
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9. Money
Purchasing Power
• Since the inception of the FED in 1913,
the purchasing power has been constantly
falling.
• H. Hazlitt – The Inflation Crisis and How to
Resolve it.
S1
Value
S2
Provided by ObservationandNotes
• Increasing money supply puts more
money in the economy and
decreases the value of it.
• Savings decrease in value. This is a
D1 hidden tax on the poor.
Quantity
• “Governments never learn. Only
Undergraduate Economics Association people learn.” – M. Friedman
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10. Continuous Intervention
Once you control one thing, you must control the other.
• When government intervenes in the economy, it has
unintended consequences.
• These are understood too late, and it involves more
intervention.
• Until the economy is considerably under government
control or socialism.
Producers of
Milk producers
Government Factors of
make fewer Government
finds milk production make
profits. tries to control
important. fewer profits.
They leave to factors of The Trend
Government They leave. Milk
produce other production. Continues
imposes production and
things. Imposes price
maximum price factors of
Milk production control on them.
on milk. production are
falls.
low.
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12. Soaring Debt!
US Debt:
$16, 425, 816, 500, 262
• Debt has increased magnanimously
over the past 20 years.
• Eventually, debt has to be
redeemed.
• Around $10 trillion of the debt is
owned by China!
• When the debt must be redeemed
then there will be panic and
instability.
• Onward to BU Economist:
Lawrence Kotlikoff
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13. Soaring Debt!
Laurence Kotlikoff:
“The U.S. is bankrupt. Neither spending more nor taxing less
will help the country pay its bills.”
• Writer of Jimmy Stewart is Dead: Ending the
World’s Ongoing Plague with Limited Purpose
Banking.
• Debt actually stands at $202 trillion!!!
• For the gap to be closed you must “double our
taxes”…….permanently.
• Entitlements to baby boomers will have to be
paid.
• “The annual cost of these entitlements will total
about $4 trillion in today’s dollars.”
Ending Scenario:
• Countries notice that the debt will never be paid.
Debt will be called in.
• Interest rates for government bonds will rise.
• Taxes will have to rise rapidly to pay for debts.
• Money will have to be printed to keep everything
going.
Undergraduate Economics Association “And we all fall down…”
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14. Soaring Debt!
Limited Purpose Banking (LPB):
• Banks should do what they were created
to do…Store money and financial
intermediation.
• Banks would utilize mutual funds.
• People would come and choose where
their savings would go and what risk to
accumulate.
• Banks do not hold ‘any financial assets
and they’d borrow except to finance their
mutual funds operations.’
• Federal Financial Authority (FFA) would
‘rate, verify, supervise custody, disclose
and clear all securities purchase, held and
sold by LPB mutual funds.’
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16. Business Cycles
Richard Cantillon Ludwig von Mises F.A. Hayek Murray Rothbard
(1680 – 1734) (1881-1973) (1899-1992) (1926-1995)
What Causes Business Cycles?
• Economic theory states that prices should equilibrate. Then why do prices suddenly fall
dramatically and violently?
• Are markets susceptible to the risk of continuous failure? Is capitalism good, but a deadly
force as well?
• Is government the problem? Or is ‘irrational exuberance’ a worry?
• Minimalist government theorists propose a theory: Austrian Theory of the Business Cycle.
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17. Business Cycles
Austrian Theory of the Business Cycle: Quantity theory of money
Confounded?
• Ludwig von Mises noted his discontent
against the quantity theory of money. 1st Stage: mv > pt
• Once Government increases the money
supply to improve the economy, three 2nd Stage: mv = pt
stages take place.
3rd Stage: mv < pt
• 1st Stage: Money supply rises faster than
the increase in price. People are not Example: Germany Hyperinflation.
scared.
• 2nd Stage: People are starting to get S1
anxious as they notice the inflation seems Value
to be continuing. Fears of never ending
inflation are taking place.
• 3rd Stage: Everyone notices that the
amount of money keeps rising
indefinitely. People panic and try to
exchange for goods and services. D1
D2
The Economy Goes Bust!
Quantity
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18. Business Cycles
Hayekian Triangles:
• The Keynes and Hayek debate was the
Consumption
pinnacle of economics in the 20th
1
century.
• Hayek devised the triangles to explain
the ‘structure of the economy’ and Stages of Production
‘consumption’. (1)
• Why do people save? To consume in
2
Consumption
the future!
• When entrepreneurs see interest rates
fall, they think that people are saving
more. Stages of Production
• They invest more, and the stages of
production rise. (2)
• Thus, when people start to spend, the
entrepreneurs are ready!
Consumption
What happens when there is credit
expansion?
Stages of Production
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19. Business Cycles
Credit Expansion:
• When the FED artificially stimulates the
Consumption
economy, then….
Investors think that people are saving
and try to invest in capital.
Consumers see interest rates are low Stages of Production
and start to spend. (‘Get Rich Schemes’
– M. Rothbard)
• The economy goes through unsustainable
growth and a bubble is created.
• Investors do not have enough resources to
invest.
• Eventually, everyone notices that
consumption doesn’t rise to predicted
amounts. The bubble bursts.
• Capital markets usually affected – M.
Rothbard.
• Just like the Housing Bubble.
Provided by Ibtimes.com
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20. Collective Corruption
The Problems: Definition:
• Fiat money produced by the government buys • “…the logical result of government
friends. interventionism in the field of money
• When stimulus is spent they benefit the rich at the production—can explain why public
expense of the poor. opinion accepts adherence to an
• The highest in power do not ask for a change economically and socially destructive fiat
because they benefit greatly from the corruption. money regime” – T. Polleit (Fiat Money and
• The system will never change! Collective Corruption)
Economy goes into a Stimulus goes to the By the time it reaches the
recession followed by a wealthy first, benefitting poor, they can’t use the
stimulus. the people who made money because prices
serious errors. have risen.
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21. THANK YOU!
The curious task of economics is to demonstrate to men how little they
really know about what they imagine they can design. - F.A. Hayek
vs
If economists could manage to get themselves thought of as humble,
competent people on a level with dentists, that would be splendid. –
J. M. Keynes
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