Assignment:
• Summarize the following articles.
• Use electronic means [preferably with WORD] to answer the following questions.
• Graphs, charts and tables may be included on a free-hand basis.
• Use one-inch margins and 12 font.
• Be sure to write the Roman numeral Question and the name of the article(s) (underling answering).
• Do not write on back of paper.
• Start each question on a separate page.
• Failure to complete this assignment on time will result in severe penalties
• Neatness and correct form are just as important as the thoroughness of your answers
I. The following question is based on the article, "Why are interest rates so low?" by ben Bern According to the author why are interest rates so low? In addition to your verbal exposition, sure to use both the loanable funds and liquidity preference interest frameworks to analyze t question.
II. The following question is based on the article, "The Costliest Mistake In All Of Economics Joe Weisenthal:
The world's most famous bond manager, Bill Gross, was forced to send out an apology to investors over his dismal performance in 2011. Using all of the analytical devices (graphs, equations, identities, etc.) presented in this class, explain his mistake [However, you do not n to use the Charts used in the article to answer this question].
III. The following question is based on the article: "How the Fed controls Interest Rates" by Jan Hamilton, Mar27 2017.
The way the FED controls interest rates today is completely different from the way things wo over 10 or so years ago. Explain thoroughly.
IV. The Great Recession in the U.S. was associated with a severe financial crisis, but we did not observe people rushing to their banks to withdraw their deposits. However, a closer look suggests that the crisis was not very different from a typical banking crisis, except that it was triggered outside the traditional banking sector. Using the article "Shadow Banking Crisis of 2007-08," explain how the financial crisis can be viewed as a banking crisis that originated in the shadow banking system.