Econ FEB - Monetary policy in modern times can print higher...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
February 11, 2008. **CLASS BEFORE EXAM** Test is 40 Multiple Choice questions. Gresham’s law: bad money replaces good money. e.g. When actual gold coins (good form of $) is compared to a certificate given by government (bad form of $), then only certificates will be present and gold coins will disappear. Bad form/good form of money are in a relative sense of the market. Public confidence: Legal tender (all currency, sometimes excluding pennies & small change). Responsibility of monetary policy: policy to keep money supply growth at a reasonable rate. o Assures us that the value of our money will not significantly decline (stability). o
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Monetary policy in modern times can print higher money supply & gov’t can earn profit by doing so. This gov’t profit is called, or “SEIGNEORAGE” (pron. See-nee-orage). o Govt’s that have been too greedy of seigneorage have paid a significant ‘price’ for it. E.g. Germany, Turkey,etc. • Modern money supply is called Credit Money or fiduciary money. Topics on Test 1: Definitions: Economics (micro & macro, normative & positive), factors of production, economic system, communism, capitalism, circular flow, opportunity cost, economic hypothesis, PPC, law of demand & its validity, law of supply. 1 & 2 of both chapter 3 of micro....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern