Lecture18

Lecture18 - Christie Hua LECTURE 18 I II Economic Bubbles a...

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Christie Hua 6/1/09 LECTURE 18 I. Economic Bubbles a. South Sea Bubble II. Regulation a. Set of policy instruments that can disable or enable certain behavior i. Achieve economic objectives ii. Efficiency of allocation iii. Distribution of income/wealth iv. All forms of social control or influence b. economic goals i. directly or indirectly control prices ii. antitrust law 1. strengthen market forces so that direct regulation is unnecessary iii. social goals 1. protecting public health and maintaining a clean and healthy environment a. protecting public health b. clean/healthy environment III. Adam Smith and the Invisible Hand a. Invisible hand of market sets prices IV. Pendulum of Regulatory Regimes a. Shifting regulatory regimes = history of capitalism b. 1890s – First Era of Globalization i. bank panics c. 1913 – Federal Reserve created d. Roaring Twenties, Market Crash i. New Deal V. US Housing Bubble 2007 a. Biggest bubble in history b. Inability of homeowners to pay mortgages
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This note was uploaded on 06/05/2010 for the course GLBL 2 taught by Professor Nielsen during the Spring '09 term at UCSB.

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Lecture18 - Christie Hua LECTURE 18 I II Economic Bubbles a...

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