Need help with my Economics question – I’m studying for my class.
Respond to classmate’s answer: Make sure to respond to each of them. Thank you!
#10: Brazil’s New Approach to Open the Economy.
– “I believe that Brazil’s approach to reducing the tariffs will help their economy. In terms of economic efficiency, Brazil’s economic output is inefficient due to irrational resource allocation. The Brazilian government hopes to improve economic efficiency through market-oriented reforms, opening up trade and privatizing the infrastructure sector.Only with fiscal balance and various reforms implemented can Brazil’s economy be expected to grow steadily in the long run.”
#11: The Case for A New Gold Standard.
– “Although I think that using gold as a new stable price is a good idea, I do not think that it would be efficient or even realistic at this time. There are already so many forms of currency and I can not imagine adding gold into that mix. With Cochrane’s arguments, we are able to see the effects of deflation and inflation if gold was considered the standard. It really would not be as beneficial as economists used to believe. Regardless of what unit we use, inflation and deflation are what will greatly impact the economy. If the gold standard was introduced as the monetary system where a country’s currency is tied to gold, I think that it would, as in any situation, has its own advantages and disadvantages. Although it could prevent inflation, it also makes it more difficult for businesses to keep track of things such as inventory. In addition, as the article said, there is nothing special or valuable about gold, so it would really be unnecessary to move this type of monetary system.”
#12: Opening the Chinese Economy.
– “I believe that China got invited into the World Trade Organization in hopes that China would become more of a Capitalist country. Many politicians want this for China and made it possible for them to join the World Trade Organization. This was also on the assumption that allowing China to join the WTO would cause more trade with China, which would actually be more of an advantage for America’s economy. Currently, even as China is a part of the WTO, they have not necessarily become a more capitalist country, contrary to the hopes of other politicians. This has actually caused to become a threat to the US, which has caused the current tensions with China. There have been tariffs and restrictions imposed recently, better known as Trump’s trade war. There have been many things that China has not held its end of the bargain, and the fate of the Chinese economy and government really is in their own hands.”
Read and answer the following: You should respond briefly through a single substantive paragraph to the questions based on the attached article. Thank you!
#13: Are These Really New Modern Monetary Theories?
Based from this article, how do you initially react to the assumptions of the “Modern Monetary Theory” of some progressive thinkers? Is it really sustainable over time? (Please read the “Modern Monetary Theory Is Ancient;…” to answer this question.)
#14: Trump’s Ideas on Trade.
Is the President correct about foreign trade? Does his view have sound economic basis? (Please read the “Trump Forged His Ideas on Trade…” for this question.)
#15: Is Fiscal Stimulus a Fantasy?
How do you respond to the claim made by Professor Phelps that fiscal, and possibly monetary expansionary policies are counter-productive? (Please read the attached file “Fiscal Stimulus”)