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Unit 2 Discussion Board This week I would like each of you to pick your own Macroeconomic issue from the national news and comment on it. I like the Wall Street Journal but you can pick another similar newspaper. There are many Macroeconomic issues in the news right now. As you learned in Chapter 2, macroeconomics is the study of economy wide phenomena. So find a topic to comment on and tell us where you found it. Make sure your topic fits the definition of a Macroeconomic issue. With a class this large, I realize that some duplications of issues will occur so I expect that when that happens that each take on the issue will be unique and well researched. Some issues found here may be used in future discussions. Also, if possible, when making your comments on other classmates see if you can possibly find comments that you disagree with. That makes for more interesting discussions. The purpose of this exercise is to make you more aware of the issues being discussed every day and to help you identify those that are Macroeconomic issues and those that are Microeconomic issues.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
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Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
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