Big idea #5: The Power of
Tradehttp://www.youtube.com/watch?v=jbkSRLYSojo
Hans Rosling's famous lectures combine enormous quantities of
public data with a sport's commentator's style to reveal the story
of the world's past, present and future development. (4:48
minutes).BACK TO
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Big idea #6: The Importance of Wealth and Economic GrowthWealth
brings higher standards of living.Understanding economic growth is
crucial.
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SEE THE INVISIBLE HANDSEE THE INVISIBLE HAND
World Distribution of Income, 2000. Source: Penn World
Tables
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Big idea #7: Institutions MatterWhy are some countries rich and
others poor?Incentives are sometimes lacking.Strong institutions
that support these incentives foster economic growth.
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North and South Korea at nightCan you tell which country has
better institutions?
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Big idea #8: Economic Booms and Busts Cannot Be Avoided but Can
Be ModeratedPolicymakers use Fiscal Policy and Monetary Policy to
attempt to smooth out this economic volatility.
Can we make the economy smoother?
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Big idea #9: Prices Rise When the Government Prints Too Much
MoneyInflation is an increase in the general level of
prices.Heavily indebted nations often print money to pay down
debt.Zimbabwe: highest inflation ever
Brother can you spare 10 million Zim dollars?
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Big idea #10: Central Banking Is a Hard JobThe Federal Reserve
is the U.S.s central bank.The Fed is in charge of money
supplyHelping the economy be stableBalancing inflation and
unemploymentPreventing banking crises?
Ben Bernanke, Chairman of the Fed, wondering where the nearest
aspirin supply is.
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These titles are all hyperlinked to their respective websites to
stimulate discussion or for a quick look at whats currently hot in
economics. If you have internet access, you can click directly on
the links. If not, feel free to ignore or remove this slide (which
is embedded in all future chapter presentations as well).
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