DISCUSSION QUESTIONS How many rabbits must the magician pull out of the hat to pass this course? Stay tuned for some helpful hints!

DUE DATE	DISCUSSION QUESTION
	INSTRUCTIONS Answer each discussion question with a 600-700 word essay. Do NOT go over the word limit. The key to good writing is to say what you mean and mean what you say and quit! KISS (Keep it simple, stupid!) Busy executives do not have a lot of time to wade through excess verbiage. Each essay must be typed in 12-point Times New Roman font, single-spaced with a double space between paragraphs.
Mon 1/30/12	Dr. Keynesian or Dr. Monetarist? Assume that you are driving down the highway, someone hits your car from behind, your car veers, and you go flying out of the car window to the side of the road. Two cars stop. Fortunately for you, both drivers are doctors. The first doctor, Dr. Monetarist, looks down at you, a bloody mess of broken bones, shakes his head, reverently, as if in prayer, and, then, raises his face and hands to the heavens and cries out, "Body heal thyself!" Meanwhile, the second doctor, Dr. Keynesian, takes off his shirt, rips it into strips for tourniquets, and ties them around different parts of the body to try and stop the bleeding. Dr. Keynesian then looks up at Dr. Monetarist and screams, "For crying out loud, call 911. Get an ambulance." Dr. Monetarist screams louder, "Body heal thyself!" Eventually, Dr. Monetarist accedes and makes the 911 call. The ambulance comes and takes you the hospital, but you are dead on arrival, anyway. Use the Keynesian and Monetarist methodologies and general economic concepts from Chapter 1 of Macroeconomic Policies to explain whom you would want for your doctor — Dr. Monetarist or Dr. Keynesian — and why.
Mon 2/6/12	Paul Volcker or Alan Greenspan? Paul Volcker and Alan Greenspan are considered to be two giants in the field of monetary theory. Both served as Chairs of the Board of Governors of the Federal Reserve Bank System. Who do you think was the better Chair? Use the framework from the historical background of monetary and fiscal policies in the United states in Chapter 3 of Macroeconomic Policies to identify and explain the major macroeconomic problems that Paul Volcker and Alan Greenspan faced during their tenures as Federal Reserve Chairs and the monetary policies they used to correct these problems.
Mon 2/13/12	Bill Clinton or George W. Bush? Bill Clinton and George W. Bush are two recent Presidents of the United States. Each faced some major macroeconomic problems during their terms as President. Who do you think did the better job of resolving or correcting the macroeconomic problem(s)? Use the framework from the historical background of monetary and fiscal policies in the United states in Chapter 3 of Macroeconomic Policies to identify and explain the major macroeconomic problems that Bill Clinton and George W. Bush faced during their terms as U.S. President and the fiscal policies they used to correct these problems.
Mon 3/5/12	Current State of the U.S. Economy? Read chapters 4-9 of Macroeconomic Policies. Visit the Bureau of Economic Analysis and find current and historical data and other information on real GDP, real GDP growth, investment, and the trade balance (quarterly data). Visit the Bureau of Labor Statistics and find current and historical data and other information on employment and unemployment and productivity. Visit FRED at the Federal Reserve Bank of St. Louis website and find current and historical data for prices and inflation as measured by the Personal Consumption Expenditure Price Index (PCEPI) (quarterly data). Visit the Federal Reserve and find current and historical data and other information on industrial production, capacity utilization, foreign exchange rates, and interest rates. Make time series charts of the data for the last 10 years. Use the frameworks from chapters 4-9 of Macroeconomic Policies to analyze and summarize the current state of the U.S. economy and to identify its most pressing macreoconmic problem(s).
Mon 3/12/12	Forecasts for the U.S. Economy Read chapters 4-9 of Macroeconomic Policies. Visit Federal Reserve, Congressional Budget Office, Conference Board, Mortgage Bankers Association, Wachovia Bank, The Financial Forecast Center, Survey of Professional Forecasters, and/or other websites. Get three (3) forecasts for two (2) years for several economic indicators: real growth, unemployment, inflation, the value of the dollar, balance of trade, stock prices, and consumer confidence. Compare and contrast the forecasts for each indicator and draw some general conclusions about the prospects for economic activity for the next two (2) years. Use the frameworks from chapters 4-9 of Macroeconomic Policies to indentify and analyze the expectations for the U.S. economy for the next two (2) years.
Mon 3/19/12	U.S. President or Federal Reserve Chair? Read chapters 10-13 of Macroeconomic Policies and research other websites about the responsibilities and perks of being President of the United States and Chair of the Board of Governors of the Federal Reserve Bank System. Use this information to decide which position you would prefer to hold and explain why.
Mon 3/26/12	Why a Central Bank? The U.S. has not always had a central bank and the one it has is not yet 100 years old. Congress created the Federal Reserve in 1913 when it passed the Federal Reserve Act. The organizational structure of the Federal Reserve has changed over time. In the process, it has become more independent of the federal government. Congress has periodically threatened to repeal the Act or to reduce the Fed's authorities and powers and politicians are always calling for more transparency and accountability and less independence. Read chapters 10-13 of Macroeconomic Policies and research other websites about the functions and roles of a central bank and the transparency, accountability, and independence issues of a central bank, in general, and the Federal Reserve, in particular. Use this information to answer the following questions: What role should a central bank play in an economy? How independent should it be from the government? How accountable and transparent should it be to the general public?
Mon 4/2/12	George W. Bush (TARP I) or Barack Obama (TARP II)? Is all fiscal policy alike? The National Bureau of Economic Research (NBER), the official arbiter of business cycle turning points, dates the last peak of a U.S. economic cycle in December 2007. It has yet to date a trough. George W. Bush was President during 2008 and Barack Obama became President in January 2009. Each President proposed and Congress passed fiscal policy measures (TARP I and TARP II) to stimulate the economy and prevent the downturn from becoming a depression. Use this information to compare and contrast some provisions of TARP I and TARP II. How successful would you say TARP I and TARP II were?
Wed 4/11/12	Alan Greenspan or Ben Bernanke? Is all monetary policy alike? The National Bureau of Economic Research (NBER), the official arbiter of business cycle turning points, dates the last two business cycles as follows: expansion from March 1991 to March 2001 (120 months), contraction from March 2001 to November 2001 (8 months), expansion from November 2001 to December 2007 (73 months), and contraction from December 2007 to July 2009 (19 months). Alan Greenspan was Chair of the Federal Reserve during the first cycle and Ben Bernanke is currently Chair of the Federal Reserve (since January 2006). Each Chair proposed monetary policies to stimulate the economy and prevent their downturns from becoming depressions. Use this information to compare and contrast Greenspan's and Bernanke's problems and policies. How successful would you say Greenspan and Bernanke were?