Theories of macroeconomic development and strategy.

 

Theories of Macroeconomic Development and Strategy.

Click on the links below and Read the articles. You can also use pdf. files with the articles posted in Content – Week 7 – Articles for Discussion week 7 area.  

  • What Is Keynesian Economics?

https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm

·       What Is Monetarism?

https://www.imf.org/external/pubs/ft/fandd/2014/03/basics.htm

·       Averting Financial Crises: Advice from Classical Economists Thomas M. Humphrey

https://www.richmondfed.org/publications/research/econ_focus/2014/q4/federal_reserve

In your initial response to the topic you have to answer all questions:

     1. Should the government use monetary and fiscal policy to stabilize the economy, or should it adhere to policy rules and refrain from upsetting the economy?    To answer this question please compare and contrast the view of Keynesian economics to Monetarist economists.

  1. What would the Classicals have thought about the Fed’s handling of the financial crisis? Compare the Classicals’ view to Monetarist ‘view Fed’s handling of the financial crisis.
  2. Reflection – the students also should include a paragraph in the initial response in their own words, using macroeconomic terminology, reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.

Please also note that your answers should be written in your own words. Don’t use quotes from the articles.

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