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To start of this week's discussion, we will step back a little bit and consider the impact of different economic schools of thought and how they impact policy making. So, start off by viewing this video https://www.youtube.com/watch?v=tZvjh1dxz08 which provides a concise history of economic thought. After viewing the video, comment on whether you see yourself in the "Keynesian" or "Austrian" camp and provide support for your position.
Then, we will turn to a discussion of the Federal Reserve. Watch this second videohttps://www.youtube.com/watch?v=1dq7mMort9o and discuss the role of the Fed in the U.S. economy. What are your thoughts on how an understanding of the Fed ties in with the discussion of the different schools of economic thought? Consider questions such as -- how much should the Fed be involved in directing the economy? Is the Fed too involved? Not involved enough?
Finally, discuss the role of the Fed (positive, negative, indifferent) during the financial crisis of the late 2000s in the U.S. What are some of the implications of Fed policies? What are the primary criticisms of the Fed? Do you think any of the criticisms have merit? Did the Fed policies contribute to the crisis?
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