Pioneers in Economics

  1. Paul A, Volcker & Alan Greenspan – Answer the following questions:
    a) Critics think that the Federal Reserve Department has become so autonomous that it
    constitutes a fourth branch of government, usurping the checks and balances of our
    original constitution. Indicate if you agree with this and why. Note; the Federal
    Reserve Department does not report to the executive, judicial, or legislative branches.
    Please present a clear argument on why these critics may be correct. I want you to
    properly support your argument. You did this in your discussion and homework. I
    felt you still need to cover this. See my comments in your work from class.
    Hint: you are showing an argument that supports that the Federal Reserve is indeed
    essentially a forth branch.
    b) What happened to the Stock Market & other investment market values when Paul A,
    Volcker or Alan Greenspan even just commented on the economy? They both
    yielded tremendous power, often their opinions and comments affected the economy
    even before they actually made a change in policy or interest rates. Please cite your
    sources for this.
    c) Subsequent chairs have not seemed to have that same influence. Why do you think
    this may be so and indicate the last two chairs’ names and how long she/he they
    served? Hint: They really do not have the influence that Volcker and Greenspan did.
  2. John Maynard Keynes – Answer the following questions:
    a) Describe what he did and what he is known as.
    b) Indicate his major paper that began the Keynesian Theory of Economics. Please
    make sure you indicate the right paper the last semester the groups listed the wrong
    papers. He is by far the most significant pioneer of economics. I would make sure
    you cover his life and what he did that shaped economics. Also please let me know if
    this is followed now by most economist and by our government.

Sample Solution