10-28-08__Lecture_Notes - Economics 323 (10-28-08) Today:...

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Economics 323 (10-28-08) Today: No new reading Thursday: Walton (140-47), Gates (3-4) Tuesday: Walton (162-77), Tayler (2-7), Hunter (1-3) EXAM THURSDAY NOVEMBER 6 Extra office hours 11/4 from 1-3:30 Revolutionary war is an instance of currency finance (printing money), borrowed a little, taxed extremely little Large amount of outstanding currency essentially worthless, foreign debt, loan certificates, indents (IOU for interest on the bonds), certificates which are IOUS (quartermaster certificates) First step is to settle-up with individuals Second is to settle-up with the states Actually paying begins in 1790 1781-1788 government operating under the articles of confederation (give the government no right to tax) thus if it wants revenue all 13 states must agree on tariff or taxation or the government can beg individual states were also 13 state governments that operated quite well states have issued their own currency, successfully retiring state debt, and begin to pay interest on the federal debt, own commercial policy, have begun chartering corporations in particular commercial banks the constitution may have served the overall interest, but it probably was meant to serve the interests of those who wrote it- people’s whose interest was in personal property- shape the constitution to benefit themselves statement is devoid of any economic reasoning
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This note was uploaded on 02/01/2009 for the course ECON 3230 taught by Professor Tomlyons during the Fall '08 term at Cornell University (Engineering School).

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10-28-08__Lecture_Notes - Economics 323 (10-28-08) Today:...

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