Explain trickle-down economics

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How successful was QE1 considered to be during the Great Recession in 2008-2009? How about the subsequent QEs after 2009? You are encouraged to use additional reliable sources of information besides the film.

Why was Professor Joseph Stiglitz concerned about the "trickle-down economics" effects of the QE? (min 15)

What happened to the federal funds rate? (min 35.41) What did the Fed announce in regard to corporate debt?

What was your understanding of the problem of moral hazard as discussed in the film (min 39.31)?

Why can low interest rates be distorted tools in financial markets? Recall that in one of the interviews in the film, it was mentioned that the financial sector/industry was growing at 8% while the economy only at 3% at best.

How are we, as citizens, affecting the economy with our behavior? Is the use of stimulus checks to buy stocks, as shown in the film, helping the real economy (min 45:54)?

A similar view expressed in the film is that with so much money injected in the economy, people feel the need to buy: "Things will only go up. Or else the Fed will step in. If so, why wouldn't you just buy?" (min 47.16). What is your reaction to that view?

Reference no: EM133203172

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