Discussion:
1.Discussion
Interest rates are at a near all-time low and near zero as well. This has helped to stabilize and improve the economy over the past 4 years, and unemployment is now about where it was in late 2007, around 5.5%. The Fed is now contemplating increasing interest rates in late 2015 in order to forestall potential inflation. If you were an outside advisor to Fed Chair Janet Yellen what advice would you give to her and why
2.Discussion
The commercial banking structure in the US has changed a great deal in the past 30 years. Today the market structure of banking is that of a small set of globally huge banking behemoths (Citigroup, Bank of America, Wells Fargo, JP/Chase, etc) and a much larger set of much smaller banks. The big banks since the 2008 crisis have been characterized as ‘too big to fail' and are even now in their own category of bank regulations. Discuss the wisdom of having financial institutions that are recognized as ‘too big to fail' and the moral hazard they present to the economy at large.
3.Discussion
Why can't the government legislate bad things out of existence and which model of government, public interest or private interest, is the most accurate depiction of reality?
4. Case Study/Project
There is a single case project worth 15% of your total grade. This is due on Sunday of week 6 at midnight EST. Select a news article dated within the previous two months, and analyzes the issue using the economic concepts and theory learned in this class. Develop a 3 to 5 page double-spaced paper that advocates a position on this issue. Title page, appendices and bibliography are not to be counted in the page total for the narrative portion of the paper. Your paper should begin with a concise summary paragraph that (1) states the problem and (2) summarizes your position. The remainder of the paper should support and explain your position. The paper should include at least one graph developed in our course and define all economic concepts used to build your argument. Possible graphs/concepts/theories to use in your paper include:
• taxes, consumer or producer surplus, and welfare
• demand, supply, and equilibrium price of a particular product or products
• total benefit and cost curves
• production function and isocost curves
• long-run and short-run costs
• indifference curves, indifference curves and budget line
• price elasticities of supply and demand, or income elasticity, on a particular product or products
• perfect competition and imperfect competition, such as monopolies
• another topic selected by the professor
The case must be submitted with a Turnitin report of originality.
5. Term Paper
There is one term paper required for the class worth 25% of your final grade. You are to develop a topic yourself and this topic must be approved. Topics are due on Sunday evening of Week 1 at midnight EST. The finished term paper is due on Sunday of week 8 at midnight EST. Develop a 10 to 15 page double-spaced paper that develops your topic and brings it to a conclusion. Title page, appendices and bibliography are not to be counted in the page total for the narrative portion of the paper. Your paper should begin with a concise summary paragraph that (1) states the problem/issue/topic you have selected and (2) summarizes your position, anticipating the conclusion. The remainder of the paper should support and explain your position. The paper should include at least three graphs developed in our course and define all economic concepts used to build your argument.
The paper must be submitted with a Turnitin report of originality. . Directions for student use of Turnitin are as follows