DOCSLIB.ORG

Machinc the Basic Concepts. Second Edition

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Machinc the Basic Concepts. Second Edition DOCUMENT RESUME ED 2IL-719D SO 015 821 Saunders, Phillip; And Others TITLE :aster Curriculum guide in Economics. A Frames orl: -Eor Machinc the Basic Concepts. Second Edition. INSTITUTION Joint Council on Economic Education, New York, N.Y. REPORT NO S2EE-Checklist-335 PUB DATE Sf.1- NOTE 82;2.; Replaces ED 148 648. AVAILABLE FROMJoint Council on Economic Education,2 Park Lve., New York, NY 10016 ($5.00). PUB TYPE Guides Classroom Use Guides (For Teachers) EDRS PRICE MF01 Plus Postage. PC Not Available from EDRS DESCRIPTORS Citizenship Education; Concept Formation; *Concept Teaching; *Curriculum Development; *Decision Making Skills; Economic Change; Economic Climate; Economic Development; Economic Factors; *Economics Education; Educational Objectives; Elementary Secondary Education; Fundamental Concepts; Models; Problem Solving ABSTRACT Intended for curriculum developers, this revised Framework presents a set of basic concepts for teaching K-12 economics. The revision reflects the change and development which the field of economics has undergone and includes improvements suggested by users of the first edi'Lion. The purpose of teaching economics is to impart a general understanding of now our economy works and to improve economic decision making by students through the use of an orderly, reasoned approach. Chapters I,II, and III provide a brief introduction to the publication, discuss the elements of economic understanding, and list and describe some basic economic concepts. Chapter TV discusses the broad social goals that seem most important in the United States todE7, the problem of trade-offs among goals, and the role of self-i7-?.rest and personal values. Chapter V .1ustrates the use of decision-making model with two economic izsues involving public policy. The concluding chapter, chapter VI, discusses the grade placement of the economic concepts. (RM) ********************************************************************* 'Zeproductions supplied by EDRS are the best that can be made from the original document. ********************************************************************* MASTER CURRiCULUM GUIDE IN ECONOi CS SECJND EDITION U S. DEPARTMENT OF EDUCATION NATI'N tL INSTITUTE OF EDUCATION iif r!JUHr.1.-.1'W: r,i4 kC. Phillip Saunders, Chair G.L. Bach lames D. Calderwood W. Lee Hansen With contributions trom Herbert Stein -DERtvlISSION TO REPRODUCE THIS MATERIALINMICROFICHE ONLY HAS BEEN GRANTED BY cOay et't TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC)." 1.,..))1k,)11L 2 PHILLIP SAUNDERS iS professor of cconomics and cnrector of the Center for Economic Education at Indiana Unit trsity in Bloomington. G. L. BACK is Frank Buck Professor of Economics and Public Policy (Emeritus) at Stanford University in California. JAMES D. CALDERWOOD is Joseph A. DeI3ell Professor of Business Economics (Emeritus) rit the University of Southern CaPfor- nia and adjunct profets>r of international busi :less at Seattle Pacific University. W. LEE HANSEN is professor of economics and of educational policy studies and director of the Indus rial Relations Research :xi- stitute at the University of WisconsinMadison. * * * * * * * * ; HERBERT STEIN is A. Willis Robertson Professor of Economics at the University of Virginia and a senior of the American Enterprise Institute. The Join' Council on Economic EC.., anon is extremely gralciul to themembers of its Pl.blicat ions Committee who reviewed the manuscript of this volume.How- ever, responsibilu for th,' published version rest:with the authors and publIshev. P177, 199I ,)11 11c()11(1111( 2 l':trk NCW York, NY 11)()I;: Alt rigilts reserved First edition 1977. Second edition 1984. 5 2 1 Lawrence A. Mayer: IHrect or of Publications Ester Moskowitz: AssociatDirector of Publications Foreword Preface uii INTRODUCTION A BRIEF HISTORY OF THE -FRAMEWORK 1 BACKGROUND OF THE REVISION 2 THE OBJECTIVES OF ECONOMIC EDUCAT :CIV THE STATE OF ECONOMIC UNDERSTANDIN-i THE ELEMEI'ITS OF P,CCICIVLIn Ur\TDERSTANDENG 6 A REASONED APPROACH DECISION-MAKING GRIDS BP SIC CONCEPTS FUNDAMENTAL ECONOT,IIC CONCE-S I0 SCARCITY 10 Economic Wants Productive i'Zsources Human Resources Natural Resources Capital Goods '2. OPPORTUNITY COST AND TRADE-OFFS PRODUCTIVITY 13 Specialization and the Division of I_ hor Investment in Capital Goods Investment in Human Capital Technological Change Effects of Government -1. ECONOMIC SYSTEMS 16 5. ECONOMIC INSTITUTIONS AND INCI 6. EXCHANGE, MONEY, AND INTERDEP-LNI)EI'1( MICROECONOMIC CONCEPTS 20 7. MARKETS AND PRICES 20 Information Incentives Rationing The Circular Flow of Resources. Goods, ;11(1 Money Payments b. SUPPLY AND DEMAND COMPETITION AND MARKET STRUCTURE 10. INCOME DISTRIBUTION 4 11. MARKET FAILURES; 1.).7 Inadequate(..mpet i t ion Inadequate KnowledLi,e Resource 1.-.nmobility Externaiit'_es Puliiie Goods Publir: Policy Responses to Market 12. ROLE OF GOVERNMEN.1. Taxation Governments in the Circular Flow of Re ,ounces, Gimds. Services, and Money Payments MACROECONOMIC CONCEPTS 31 13. GROSS NATIONAL PRODUCT 1-1. AGGREGATE SUPPLY 3-1 15. AGGREGATE DEMAND 34 16. UNEMPLOYMENT 35 Frictional Unemployment Structural Unemployment Cyclical Unemployment 17. INFLATION AND 72'EFLATION Demand-Po.. Inflation Cost-Pi islt lat ion Price Expects. ions 18. MONETARY POLICY 3S 19. FISCAL POLICY 39 INTERNATIONAL It CONOMIC CONCEPTS LICr 20. ABSOLUTE AND COMPARATIVE ADVANTAGE AND BARRIERS TO TRADE 41 21. EXCHANGE RATES AND THE BALANCE OF F1 1MENTS 42 22. INTERNATIONAL ASPECTS OF GROW .17 AND STABILITY 4 MEASUREMENT CONCEPTS AND IVIETHoDs 45 TABLES 45 CHARTS AND GRJ,,PilS -17 RATIOS AND PERCENTAGES 1 PERCENTAGE CHANGES 48 INDEX NUMBERS 49 REAL VS. NOMINAL VALUES -19 AVERAGES AND DISTRIBUTIONS AROUND THE AVERAGE 50 IV. EVALUATING ECONOMIC PERFORMANCE AND POLICIES 52 BROAD SOCIAL GOALS 52 1. ECONOMIC FREEDOM 53 2. ECONOMIC: EFFICIE:\ 3. ECONOMIC EQUITY 53 4. ECOT,:"-!C. SECURITY 54 5. FULL EMPLO':MENT 5-1 PRICE STABILITY :54 7. ECONOMIC GRO`,.7" 5 UFR GOAIS TRADE-OFFS AMONG GOALS 56 SELF INTEREST AND PERSONAL .7AL UE,'S APPLYING ECONOMIC UNDERSTANDIRG TO ST="70IFIC ISSUES 53 THE CASE OF EGG DIVERSION 5S- WHAT IF PEACE BREAKS OUT? 63 GRADE PLACEMENT OF CONCEPTS 67 CURRICULUM CONTEXT AND GRADE PLACEMENT 67 THE NATURE OF ECONOMIC CONCEPTS AND GRADE PLACEMENT 68 INSTRUCTIONAL SEQUENCING OF ECONOMIC CONCEPTS STRATEGIES FOR TEACHING ECONOMICS AT THE VARIOUS GRADE LEVELS 69 MST OE Df.1-HBEIS Sample Decision-making Grid for Systematic Evaluation of Each Alternative with Respect to Each Goal or Criterion 7 2. Sample Decision-making Grid for Using a S15 Gift Certificate 8 3. Basic Concepts 1) The Circular Flow of Resources, Goods, Services, and Money Payments 23 Hypothetical Supply and Demand Schedules for a Hypothetical Product 24 6. Sources and Distribution of Personal Income in the United States, 1987, 27 7. Governments in the Circular Flow of Resources, Goods, Services, and Money Payment.s 32 8. Sample Decision-making Grid for the Egg Diversion Case 60 Classification of Elementary- and Secondary-Level Student Activities in MCG Strategies Volumes by Main Economic Concept Categories and Cognitive Level Groups 70 The first ?dition of tins Framework, the initial volume in the Joint Council of Economic Education's Master Curriculum Guide in Eco- nomics, was published in 1977 with gratifying results. It provided the foundation for a series of Teaching Strategies that demonstrate how to introduce the conceptual framework of economics at various grade levels. To date, the Joint Council has published seven Strategies vol- umes, and will publish more. In addition, the Joint Council, the Agency for Instructional Television, and the Canadian Foundation for Eco- nomic Education have produced two television/film series.. Trade-offs and Giue & Take, based on the Framework. Both series are used extensively in the United States and Canada. The Frame 'ark has also influenced the approach taken to economics in textbo .its and other curriculum materials at both the elementary and secondary school levels and has served as the basis of many state and local programs for teaching economics. Two considerations led tiic Joint Council to publish a revised edition of the Framework: a recognition that the subject matter of economicsas of every disciplineundergoes continual growth and development, and a desire to make improvements suggested by users of the first edition. There are many to whom we owe thanks for their contributions to this new edition. They include the economists who wrote it and the reviewers of earlier drafts. We are also grateful to the funder: who supported this effort: The Amoco Foundation, Inc.; Exxon Company, U.S.A.; the Calvin K. Kazanjian Economics Foundation, Inc.: and the Northrop Corporation. Members of the Joint Council staff who have worked on this project include John M. Sumansky, program director; S. Stowell Symrnfs, school services director: June V. Gilliard, curriculum directo7; and Lawrence A. Mayer and Ester Moskowitz. respect IIv director and as- sociate director of the Publications Division. 111(I I.V!.I A. AI .\( )\\1..1,1, President, JCEE 7 As explained elsewhere in this volume, the experience gained from the use of the fig edition of the Framework and the passage of time have made it advisable for the Joint Council on Economic Education to publish this revised edition. This revision still reflects the heavy emphasis on economics as a way of thinking, rather than a -;cq of answers, which was contained in the Report of the National Task Force on Economic Education. published in 1961. It also reflects the major contribution cf W. Lee Hansen, who provided the leadership that led ,-) the first edition of this Framework in 1977. We had hoped to have ,!rbert Stein join us as a co-author of this revised edition, but his busy schedule and other commitments prevented him from doing this. Mr. Stein was able to review the revised manuscript and offer several useful suggestions for improvement, however, and we have also ben- efited from comments and suggestions from the following people in addition to Herbert Stein. Beverly Armento Michael A. MacDoweh Jean Caidwell Campbell R. McConnell George G. Dawson Steven L. Miller Rendigs Fels Herbert C. Morton Joyce Gleason Saul Rosen C.
Load more

Recommended publications
  • Consequences of Government Deficits and Debt
    Consequences of Government Deficits and Debt∗ Glenn Hubbard Columbia University and NBER Over many years, Ben Friedman’s economic research and writings in political economy frame economic analysis of— and moral consideration of—large government budget deficits and the need for fiscal consolidation in the United States. In his book The Moral Consequences of Economic Growth, Friedman emphasizes the salutary effects economic growth for openness and social cohesion. This essay emphasizes economic analysis of government budget deficits. The U.S. economy did not, in many respects, flounder after the budget deficits of the 1980s. Indeed, by the middle of the 1990s, the U.S. economy began a long-lasting expansion in productivity growth. While direct crowding out of private investment through higher real interest rates has, at least in the view of the empirical evidence reviewed in this essay, been modest, three concerns remain. The first is that cumulative increases in debt are now so large that even the small estimated effects identified here can lead to large increases in real interest rates. The second is that one atten- uation of effects of higher government debt levels on interest rates may trace to greater reliance on foreign saving, with an accompanying problem of imbalances. The third is that the present trajectory of government spending in the United States presents the very real possibility of higher tax burdens, reduc- ing capital formation, economic growth, and living standards. JEL Code: H6. ∗The author is Dean and Russell L. Carson Professor of Finance and Econom- ics, Columbia Business School; Professor of Economics, Columbia University; and Research Associate, National Bureau of Economic Research.
    [Show full text]
  • Report to the President on the Activities of the Council of Economic Advisers During 2009
    APPENDIX A REPORT TO THE PRESIDENT ON THE ACTIVITIES OF THE COUNCIL OF ECONOMIC ADVISERS DURING 2009 letter of transmittal Council of Economic Advisers Washington, D.C., December 31, 2009 Mr. President: The Council of Economic Advisers submits this report on its activities during calendar year 2009 in accordance with the requirements of the Congress, as set forth in section 10(d) of the Employment Act of 1946 as amended by the Full Employment and Balanced Growth Act of 1978. Sincerely, Christina D. Romer, Chair Austan Goolsbee, Member Cecilia Elena Rouse, Member 307 Council Members and Their Dates of Service Name Position Oath of office date Separation date Edwin G. Nourse Chairman August 9, 1946 November 1, 1949 Leon H. Keyserling Vice Chairman August 9, 1946 Acting Chairman November 2, 1949 Chairman May 10, 1950 January 20, 1953 John D. Clark Member August 9, 1946 Vice Chairman May 10, 1950 February 11, 1953 Roy Blough Member June 29, 1950 August 20, 1952 Robert C. Turner Member September 8, 1952 January 20, 1953 Arthur F. Burns Chairman March 19, 1953 December 1, 1956 Neil H. Jacoby Member September 15, 1953 February 9, 1955 Walter W. Stewart Member December 2, 1953 April 29, 1955 Raymond J. Saulnier Member April 4, 1955 Chairman December 3, 1956 January 20, 1961 Joseph S. Davis Member May 2, 1955 October 31, 1958 Paul W. McCracken Member December 3, 1956 January 31, 1959 Karl Brandt Member November 1, 1958 January 20, 1961 Henry C. Wallich Member May 7, 1959 January 20, 1961 Walter W. Heller Chairman January 29, 1961 November 15, 1964 James Tobin Member January 29, 1961 July 31, 1962 Kermit Gordon Member January 29, 1961 December 27, 1962 Gardner Ackley Member August 3, 1962 Chairman November 16, 1964 February 15, 1968 John P.
    [Show full text]
  • 2017 Economic Report of the President
    APPENDIX A REPORT TO THE PRESIDENT ON THE ACTIVITIES OF THE COUNCIL OF ECONOMIC ADVISERS DURING 2016 letter of transmittal Council of Economic Advisers Washington, D.C., December 15, 2016 Mr. President: The Council of Economic Advisers submits this report on its activities during calendar year 2016 in accordance with the requirements of the Congress, as set forth in section 10(d) of the Employment Act of 1946 as amended by the Full Employment and Balanced Growth Act of 1978. Sincerely yours, Jason Furman, Chairman Sandra E. Black, Member Jay C. Shambaugh, Member Activities of the Council of Economic Advisers During 2016 | 547 Council Members and Their Dates of Service Name Position Oath of office date Separation date Edwin G. Nourse Chairman August 9, 1946 November 1, 1949 Leon H. Keyserling Vice Chairman August 9, 1946 Acting Chairman November 2, 1949 Chairman May 10, 1950 January 20, 1953 John D. Clark Member August 9, 1946 Vice Chairman May 10, 1950 February 11, 1953 Roy Blough Member June 29, 1950 August 20, 1952 Robert C. Turner Member September 8, 1952 January 20, 1953 Arthur F. Burns Chairman March 19, 1953 December 1, 1956 Neil H. Jacoby Member September 15, 1953 February 9, 1955 Walter W. Stewart Member December 2, 1953 April 29, 1955 Raymond J. Saulnier Member April 4, 1955 Chairman December 3, 1956 January 20, 1961 Joseph S. Davis Member May 2, 1955 October 31, 1958 Paul W. McCracken Member December 3, 1956 January 31, 1959 Karl Brandt Member November 1, 1958 January 20, 1961 Henry C. Wallich Member May 7, 1959 January 20, 1961 Walter W.
    [Show full text]
  • Report to the President on the Activities of the Council of Economic Advisers During 2011
    APPENDIX A REPORT TO THE PRESIDENT ON THE ACTIVITIES OF THE COUNCIL OF ECONOMIC ADVISERS DURING 2011 letter of transmittal Council of Economic Advisers Washington, D.C., December 31, 2011 Mr. President: The Council of Economic Advisers submits this report on its activities during calendar year 2011 in accordance with the requirements of the Congress, as set forth in section 10(d) of the Employment Act of 1946 as amended by the Full Employment and Balanced Growth Act of 1978. Sincerely, Alan B. Krueger, Chairman Katharine G. Abraham, Member Carl Shapiro, Member Activities of the Council of Economic Advisers During 2011 | 295 Council Members and Their Dates of Service Name Position Oath of office date Separation date Edwin G. Nourse Chairman August 9, 1946 November 1, 1949 Leon H. Keyserling Vice Chairman August 9, 1946 Acting Chairman November 2, 1949 Chairman May 10, 1950 January 20, 1953 John D. Clark Member August 9, 1946 Vice Chairman May 10, 1950 February 11, 1953 Roy Blough Member June 29, 1950 August 20, 1952 Robert C. Turner Member September 8, 1952 January 20, 1953 Arthur F. Burns Chairman March 19, 1953 December 1, 1956 Neil H. Jacoby Member September 15, 1953 February 9, 1955 Walter W. Stewart Member December 2, 1953 April 29, 1955 Raymond J. Saulnier Member April 4, 1955 Chairman December 3, 1956 January 20, 1961 Joseph S. Davis Member May 2, 1955 October 31, 1958 Paul W. McCracken Member December 3, 1956 January 31, 1959 Karl Brandt Member November 1, 1958 January 20, 1961 Henry C. Wallich Member May 7, 1959 January 20, 1961 Walter W.
    [Show full text]
  • This PDF Is a Selection from an Out-Of-Print Volume from the National Bureau of Economic Research
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The State of Monetary Economics Volume Author/Editor: Universities-National Bureau Commitee for Economic Research Volume Publisher: NBER Volume ISBN: 0-87014-307-7 Volume URL: http://www.nber.org/books/univ65-1 Publication Date: 1965 Chapter Title: Front matter to "The State of Monetary Economics" Chapter Author: Universities-National Bureau Commitee for Economic Research Chapter URL: http://www.nber.org/chapters/c5176 Chapter pages in book: (p. -5 - 0) THE STATE OF MONETARY ECONOMICS A Conference of the Universities —NationalBureau Committee for Economic Research NATIONAL BUREAU OF ECONOMIC RESEARCH NEW YORK DISTRIBUTED BY COLUMBIA UNIVERSITY, PRESS NEW YORK AND LONDON ACKNOWLEDGMENTS Arrangements for the Conference on Monetary Economics were made by a committee con- sisting of James Duesenberry, Milton Friedman, Franco Modigliani, Edward Shaw, James Tobin, and G. L. Bach (chairman). Robert P. Shay of the National Bureau of Economic Research de- serves special thanks for his assistance in arranging the Conference and his help with the publica- tion of this volume. This is the sixteenth report in the National Bureau's Special Conference series growing out of the work of the Universities-National Bureau Committee for Economic Research. Margaret T. Edgar edited the papers and H. Irving Forman drew the charts. UNIVERSITIES—NATIONAL BUREAU COMMITTEE FOR EcoNoMIc RESEARCH This Committee is a cooperative venture of universities and the National Bureau.Its guiding objective is the encouragement of economic research on problems susceptible of ob-. jective treatment and of sufficiently broad scope to merit attention by institutions serving at scientific and public interest.
    [Show full text]
  • Download (134Kb)
    t:.IL 1 avenue das Arts 23* J;,C. f· -l 1040 Brussels • usa documents Tel. 13 44 so PUBLIC AFFAIRS OFFICE UNITED STATES MISSION TO THE EUROPEAN COMMUNITIES December 8, 1971 HERBERT STEIN, NEW PRESIDENTIAL ECONOMICS ADVISER Washington, D.C. -- Herbert Stein, who has often been called the architect of the Nixon Administration's "phase two" operation to regain U.S. economic stability, will become chairman of the President's Council of Economic Advisers January 1, 1972. The 55-year-old economist, who has served as a member of the Council since 1969, will succeed Paul W, McCracken, who will return to a professorship at the University of Michigan early next year. Dr. McCracken's resignation had been expected since September but the effective date was postponed to enable him to work on the new economic stabilization policy announced by President Nixon on August 15. Mr. Stein was among the top officials who met at the Camp David Retreat in Maryland in mid-August to draw up the final pro­ visions of the new economic program. Although long opposed to economic controls such as the 90-day wage-price freeze he said he recognized the need for them at that particular time. He noted that "the events of 1971 are a stern warning to those of us who do not want a controlled system, even though we recognize the necessity for controls in the conditions of 1970 ... it is necessary to try to avoid the conditions which led to controls in 1971." To do this, Mr. Stein said, "we must learn how to manage our fiscal and monetary affairs more responsibly, to avoid a repetition of the 1965-68 inflation.
    [Show full text]
  • Report to the President on the Activities of the Council of Economic Advisers During 2013
    APPENDIX A REPORT TO THE PRESIDENT ON THE ACTIVITIES OF THE COUNCIL OF ECONOMIC ADVISERS DURING 2013 letter of transmittal Council of Economic Advisers Washington, D.C., December 31, 2013 Mr. President: The Council of Economic Advisers submits this report on its activities during calendar year 2013 in accordance with the requirements of the Congress, as set forth in section 10(d) of the Employment Act of 1946 as amended by the Full Employment and Balanced Growth Act of 1978. Sincerely yours, Jason Furman, Chairman Betsey Stevenson, Member James H. Stock, Member Activities of the Council of Economic Advisers During 2013 | 347 Council Members and Their Dates of Service Name Position Oath of office date Separation date Edwin G. Nourse Chairman August 9, 1946 November 1, 1949 Leon H. Keyserling Vice Chairman August 9, 1946 Acting Chairman November 2, 1949 Chairman May 10, 1950 January 20, 1953 John D. Clark Member August 9, 1946 Vice Chairman May 10, 1950 February 11, 1953 Roy Blough Member June 29, 1950 August 20, 1952 Robert C. Turner Member September 8, 1952 January 20, 1953 Arthur F. Burns Chairman March 19, 1953 December 1, 1956 Neil H. Jacoby Member September 15, 1953 February 9, 1955 Walter W. Stewart Member December 2, 1953 April 29, 1955 Raymond J. Saulnier Member April 4, 1955 Chairman December 3, 1956 January 20, 1961 Joseph S. Davis Member May 2, 1955 October 31, 1958 Paul W. McCracken Member December 3, 1956 January 31, 1959 Karl Brandt Member November 1, 1958 January 20, 1961 Henry C. Wallich Member May 7, 1959 January 20, 1961 Walter W.
    [Show full text]
  • DOCUMENT-RESUME ED 071.152 EA 004 650 AUTHOR Schultz
    DOCUMENT-RESUME ED 071.152 EA 004 650 AUTHOR Schultz, Theodore W. TITLE Education and Productivity. INSTITUTION National Commission on Productivity, Washington, D.C. PUB DATE Jun 71 NOTE 14p.; Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 (Stock No. 4000-0277, S.25) EDRS PRICE CIF -S0.65 HC-$3.29 DESCRIPTORS Cost Effectiveness; *Education; *Educational Economics; Educational Finance; Human Capital; *Investment; *Productivity; Publications; *Resource Allocations IDENTIFIERS *Economic Growth; Efficiency; Equity; Private Benefits; Social Benefits ABSTRACT In this paper, the author looks at the contribution of education to economic growth and examines the desirabilityof public vs private financing of education from the standpointof economic efficiency and equity. The authorsees expenditures on education as an investment in human capital, the contributionto output of such an investment depending on the amount of the investment and the realized rate of return. Hecompares the rates of return for differing levels of education to the rates of ret'Irnon nonhuman capital in the private domestic economy. In addition, the author discusses the financing of education in light of the social and private benefits that accrue from education. _Thepaper concludes with a few specific comments about the benefits and financing of higher education. (DN) NATIONAL COMMISSION Walter B. Wriston, Chairman. ON PRODUCTIVITY First National City Bank IW. Abel. President. United Steelworkers of America Joseph A Beim°, President. Membership Communications Workers of America Frank Fitzsimmons. President, International Brotherhood of Teamsters Lane Kirkland. SecretaryTreasurer, American Federation of Labor and Congress of Industrial Organizations Chairman John H. Lyons. President. Peter G. Peterson. International Association of Bridge.
    [Show full text]
  • CIO Markets Report • Key Observations • Implications • Markets Charts
    CIO Markets Report • Key Observations • Implications • Markets Charts Key Observations and Implications 1. The Fed and Punchbowls. When the worst financial crisis since the Great Depression hit the U.S. in late 2008, the Fed lowered rates to near zero, implemented quantitative easing (QE), and acted as lender of last resort. This was labeled unconventional monetary policy and continued for seven years, until 2016. Then, in early 2020, the first global pandemic in 100 years unfolded worldwide. Lockdown economics and virus avoidance behaviors led to a sudden stop in economic activity, with U.S. GDP falling at an annual rate of 31% in 2020 Q2, the largest drop ever. In response, the Fed applied the same trio of near-zero interest rates, more QE, and lender-of-last-resort policies. The results: both recessions were contained, short-term interest rates have been held to near zero for nine of the past thirteen years, and the Fed’s balance sheet has increased from $0.9 trillion to $7.7 trillion (Chart 1). After over a decade of unconventional monetary policy, the Fed is not done yet. Recent comments by San Francisco Fed President Mary Daly (“We won’t be preemptively taking the punchbowl away.”) and guidance from the May FOMC meeting—that short-term interest rates will continue to be held between 0.0% and 0.25% and the Fed’s balance sheet will continue to increase by $120 billion per month ($1.44 trillion per year)—make this clear. 2. The $5.5 Trillion Dollar Drop (26% of GDP). Since March 2020, the Federal government has implemented three rounds of stimulus spending to confront the pandemic, transfering $5.5 trillion directly to households and state and local governments.
    [Show full text]
  • August 26, 1974 Washington, D.C
    Scanned from the President's Daily Diary Collection (Box 72) at the Gerald R. Ford Presidential Library THE WHITE HOUSE THE DAILY DIARY OF PRESIDENT GERALD R. FORD PLACE DAY BEGAN DATE (Mo., Day, Yr.) THE WHITE HOUSE AUGUST 26, 1974 WASHINGTON, D.C. TIME DAY 6:45 a.m. MONDAY ~ TIME il ." ACTIVITY ~ t-----,-----J £II II In Out ... '" 6:45 The President had breakfast. 7:49 The President went to the Oval Office. 8:10 8 :30 The President met with: David A. Peterson, Chief, Central Intelligence Agency/Office of Current Intelligence (CIA/OCI) White House Support Staff Lt. Gen. Brent Scowcroft, Deputy Assistant for National Security Affairs 8:35 9:15 The President met with his Assistant, Alexander M. Haig, Jr. The President met with: 9:15 10:19 Henry A. Kissinger, Secretary of State 9:55 10:10 Lt. Gen. Scowcroft 10:15 10:19 William R. Crawford, Jr., Ambassador-designate of the U.S. to the Republic of Cyprus 10:30 10:53 The President met with: Kenneth Rush, Counsellor for Economic Policy L. William Seidman, Executive Director of the Conference on Inflation 10:54 11:06 The President met with Press Secretary, Jerald F. terHorst. 11:06 The President went to the Cabinet Room. 11:06 12:32 The President participated in a Cabinet meeting. For a list of attendees, see APPENDIX "A." Members of the press, in/out 12:32 The President returned to the Oval Office. He was accompa­ ni~d by: Jamew R. Schlesinger, Secretary of Defense Mr. Haig 12:32 1:06 The President met with: Secretary Schlesinger Mr.
    [Show full text]
  • (Appendixes) 1975
    Appendix B REPORT TO THE PRESIDENT ON THE ACTIVITIES OF THE COUNCIL OF ECONOMIC ADVISERS DURING 1974 231 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis LETTER OF TRANSMITTAL COUNCIL OF ECONOMIC ADVISERS, Washington, B.C., December 31,1974. THE PRESIDENT: Sir: The Council of Economic Advisers submits this report on its activi- ties during the calendar year 1974 in accordance with the requirements of the Congress, as set forth in Section 4(d) of the Employment Act of 1946. Respectfully, ALAN GREENSPAN, Chairman. WILLIAM J. FELLNER. GARY L. SEEVERS. 233 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Report to the President on the Activities of the Council of Economic Advisers During 1974 The Council of Economic Advisers was created by the Employment Act of 1946 to provide economic analysis and advice to the President and thus assist him in establishing and maintaining conditions under which the objec- tives of the act can be secured. Alan Greenspan became Chairman of the Council on September 4, 1974, succeeding Herbert Stein, who had served as Council Chairman since Janu- ary 1, 1972. Mr. Stein has taken up his duties as A. Willis Robertson Professor of Economics at the University of Virginia. William J. Fellner and Gary L. Seevers served as Council Members throughout 1974. Past Council Members and their dates of service are listed below Name Position Oath of office date Separation date Edwin G.
    [Show full text]
  • Curriculum Vitae Joseph E. Stiglitz
    CURRICULUM VITAE JOSEPH E. STIGLITZ Born February 9th, 1943 Address Uris Hall, Room 212 Columbia University 3022 Broadway New York, NY 10027 Phone: (212) 854-0671 Fax: (212) 662-8474 [email protected] Current Positions University Professor, Columbia University. Teaching at the Columbia Business School, the Graduate School of Arts and Sciences (Department of Economics) and the School of International and Public Affairs. Founder and President of the Initiative for Policy Dialogue (IPD) Co-Chair of the High-Level Expert Group on the Measurement of Economic Performance and Social Progress, Organisation for Economic Co-operation and Development (OECD) Chief Economist of The Roosevelt Institute Previous Positions Co-Chair, Columbia University Committee on Global Thought Chair of the Management Board, Brooks World Poverty Institute, University of Manchester Chair, International Commission on the Measurement of Economic Performance and Social Progress, appointed by President Sarkozy, 2008-2009. Chair, Commission of Experts on Reforms of the International Monetary and Financial System, appointed by the President of the General Assembly of the United Nations, 2009. Professor of Economics and Senior Fellow, Hoover Institution, Stanford University, 1988– 2001; professor emeritus, 2001— Stern Visiting Professor, Columbia University, 2000 Senior Vice President and Chief Economist, World Bank, 1997–2000 1 Senior Fellow, Brookings Institution, 2000 Chairman, Council of Economic Advisers (Member of Cabinet), 1995–1997 Member, Council of Economic Advisers, 1993–1995 Research Associate, National Bureau of Economic Research Senior Fellow, Institute for Policy Reform Professor of Economics, Princeton University, 1979–1988 Drummond Professor of Political Economy, Oxford University, 1976-1979 Oskar Morgenstern Distinguished Fellow and Visiting Professor, Institute for Advanced Studies and Mathematica, 1978-1979 Professor of Economics, Stanford University, 1974-1976 Visiting Fellow, St.
    [Show full text]