View the videos found below then answer the following questions.
John Stossel: Currency Conundrum (Links to an external site.)
(Click the link above)
John Stossel Speaks to Ex Federal Reserve Employee
User: getzladelron – Added: 7/13/13
1. What is inflation?
2. What does inflation do to the value of our money? Is it a good or bad thing? Defend your answer.
Specific to “Currency Conundrum”:
3. David Barker said, “central planning doesn’t work as well as markets.” What does this mean? Explain why you agree or disagree.
4. What do you think about the idea of private money? How do you think it would work? If people were free to use whatever money they trusted, do you think competition would provide incentives for people offering private money to retain the value of their currency and to avoid inflation?
Specific to “A History of Booms and Busts”:
5. According to Stephen Davies, when central banks manipulate the money supply artificial pressure is placed on interest rates since the market is not determining the equilibrium interest rate. This theory helps explains malinvestments. Is this a justifiable theory? Defend your answer.
Note: I need to reply other student ‘s reply,but Replies are only visible to those who have posted at reply, so i will give you other student’s reply after I post my answer.
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