SOUND MONEY AND THE FEDERAL RESERVE BANK
This week students will 1. Explain the functions of the Federal Reserve Bank. 2. Debate the necessity of the Federal Reserve Bank. 3. Assess the importance of a sound money system and its impacts on the global economy. 4. Hypothesize the return of the gold standard. Introduction To fully grasp monetary policies, you will need to take a step back and gain a full understanding of money. You will cover only one chapter, Chapter 13, from our Macroeconomics textbook this week, which contains essential material that will lay the groundwork for commonly used terms and the basics of the Federal Reserve Bank (the Fed). This will then give you the time for a unique opportunity to expand your knowledge by reading Steve Forbes’s Money: How the Destruction of the Dollar Threatens the Global Economy—And What We Can Do About It book. Through Forbes’s book and documentary, you will gain a full understanding of money. After reading this entertaining book, you will know more about money than most people in the highest government positions today. Money explains why a return to sound money is essential if the US and other nations are ever to overcome today’s problems. The authors argue that the most effective way to return to a sound money policy and a healthy economy is to put the dollar back on a gold standard. We are in for a very informative and interesting week!
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.
o Chapter 1: How We Got Here
o Chapter 2: What Is Money
o Chapter 3: Money and Trade
o Chapter 4: Money Versus Wealth
o Chapter 5: Money and Morality
o Chapter 6: The Gold Standard
PBS. (2018, December 29). In money we trust? [Video file]. Retrieved from https://www.pbs.org/video/inmoney-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.
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. o Chapter 19: A Floating Foot, Minute, and Second Would Give You Ugly Houses, Burnt Wings, and Slow NFL Draft Picks o Chapter 20: Do Not Be Fooled by Rising Computer, Flat Screen, and VHS Prices: They Are Not an Inflation or Deflation Signal o Chapter 21: True Inflation is Currency Devaluation, and It Is a Cruel Blast to the Past
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! o Chapter 7: Surviving in the Meantime o Chapter 8: Looking Ahead
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 University of Arizona Global Campus 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 University of Arizona Global Campus 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 University of Arizona Global Campus Library. In this article, Steve Forbes gives thoughtprovoking 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 University of Arizona Global Campus 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.
Board of Governors of the Federal Reserve System. (n.d.). What is the Fed? [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 Privacy Policy
Federal Reserve Bank of St. Louis. (n.d.). In plain English: Making sense of the Federal Reserve [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
Marginal Revolution University. (2018, March 13). How the Federal Reserve worked: Before the great recession [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 Privacy Policy
Oswald, M. (Writer & Director). (2012). How is money created? [Segment]. In Horwath, M. (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
Federal Reserve Bank (Debate) [WLOs: 1, 2] [CLOs: 1, 2]. 1st Post Due by Day 3. 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.
- In Money We Trust? Documentary and Money Book Analysis [WLOs: 3, 4] [CLOs: 1, 2, 3, 5]. Due by Day 7. Prior to beginning work on this assignment, • Watch the 1-hour documentary, In Money We Trust? • Read Chapters 1 through 6 of Money: How the Destruction of the Dollar Threatens the Global Economy—And What We Can Do About It. Steve Forbes is an expert on the global economy, monetary policy, and politics, and for this assignment, you will have the opportunity to dissect and analyze both his Money book and the In Money We Trust? documentary. Through a written analysis, you will explore the importance of a sound money system. It is suggested you watch the documentary first to gain insight on some of the basic concepts. Next read the book and answer the questions in sequence. Answer each of the questions noted in each section below. Each section should be approximately one page in length with a total paper length of five to six pages. Be sure to analyze and write in your own words; do not just use quotes to make your points. Additionally, judge the importance of a sound money system and assess the value of Steve Forbes’s conclusion in using the gold standard.
Section 1: Chapter 1: How We Got Here
• What are Forbes’s reasons for the housing bubble and how it related to the Federal Reserve
Bank’s policies?
• What does a weak dollar mean and what issues may come of it?
• What one other concept or idea stood out to you in Chapter 1?
Section 2: Chapter 2: What Is Money
• Why must money be stable?
• What is Forbes’s prediction of Bitcoin?
• This was noted at the end of the chapter: “Money measures wealth, but it does not create it.”
What does this statement mean?
Section 3: Chapter 3: Money and Trade
• What did Nixon do with the gold standard and what was the impact?
• What is Forbes’s view of trade deficits? Are his viewpoints good or bad?
• What one other concept or idea stood out to you in Chapter 3?
Section 4: Chapter 4: Money Versus Wealth; Chapter 5: Money and Morality
• What happens when the supply of money is increased?
• How can changes in monetary policy act as a system of communication?
• How are money and trust tied together?
• What one other concept or idea stood out to you in either Chapter 4 or 5?
Section 5: Chapter 6: The Gold Standard
• What is the gold standard and how might it work in the US?
• Why does Steve Forbes believe the gold standard should be brought back?
• What is your overall conclusion of Steve Forbes’s view of money?
The In Money We Trust? Documentary and Money Book Analysis paper
