Watch the 1-hour documentary, In Money We Trust? (Links to an external site.)
Read Chapters 1 through 6 of Money: How the Destruction of the Dollar Threatens the Global Economy—And What We Can Do About It.
Text Book: Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public choice (16th ed.). Retrieved from https://www.cengage.com
Steve Forbes is an expert on the global economy, monetary policy, and politics, and for this assignment, you will have the opportunity to dissect and analyze both his Money book and the In Money We Trust? documentary.
Through a written analysis, you will explore the importance of a sound money system.
It is suggested you watch the documentary first to gain insight on some of the basic concepts. Next read the book and answer the questions in sequence.
Answer each of the questions noted in each section below. Each section should be approximately one page in length with a total paper length of five to six pages.
Be sure to analyze and write in your own words; do not just use quotes to make your points. Additionally, judge the importance of a sound money system and assess the value of Steve Forbes’s conclusion in using the gold standard.
Section 1: Chapter 1: How We Got Here What are Forbes’s reasons for the housing bubble and how it related to the Federal Reserve Bank’s policies?
What does a weak dollar mean and what issues may come of it?
What one other concept or idea stood out to you in Chapter 1?
Section 2: Chapter 2: What Is Money Why must money be stable?
What is Forbes’s prediction of Bitcoin?
This was noted at the end of the chapter: “Money measures wealth, but it does not create it.” What does this statement mean?
Section 3: Chapter 3: Money and Trade What did Nixon do with the gold standard and what was the impact?
What is Forbes’s view of trade deficits? Are his viewpoints good or bad?
What one other concept or idea stood out to you in Chapter 3?
Section 4: Chapter 4: Money Versus Wealth; Chapter 5: Money and Morality
What happens when the supply of money is increased?
How can changes in monetary policy act as a system of communication?
How are money and trust tied together?
What one other concept or idea stood out to you in either Chapter 4 or 5?
Section 5: Chapter 6: The Gold Standard
What is the gold standard and how might it work in the US?
Why does Steve Forbes believe the gold standard should be brought back?
What is your overall conclusion of Steve Forbes’s view of money?
Requirements: 5 pages-Double Spaced
