This brief presents the results of a fiscal analysis of the New Hampshire Education Freedom Account Program. The Education Freedom Account Program enables students from low- and middle-income households to access education savings accounts (ESAs) designated for various educational purposes such as private school tuition, tutoring, textbooks,…

The topic of the Federal Reserve's (the Fed's) implementation of monetary policy has a significant presence in economics textbooks. Unfortunately, as the Fed purposefully shifted the way it implements monetary policy to an environment with ample reserves in the banking system, many textbooks have not kept up. The authors walk through the key…

The relevance of this research is caused by the need of strengthening a role of monetary regulators to prevent financial bubbles in the financial markets. The aim of the article is the analysis of a problem of crisis phenomena in the markets of financial assets owing to an inadequate growth of their cost, owing to subjective reasons. The leading…

In this article, the author describes conceptually how to think about the dramatic changes in monetary policy since the sub-prime crisis of August 2007. He also discusses how to incorporate these changes and related economic concepts in the teaching of an undergraduate class in macroeconomics. A distinction is made between conventional and…

The standard workhorse models of monetary policy now commonly in use, both for teaching macro-economics to students and for supporting policymaking within many central banks, are incapable of incorporating the most widely accepted accounts of how the 2007-9 financial crisis occurred and are incapable too of analyzing the actions that monetary…

This article represents the third in a "ghost story" series by the same authors. Readers may recall that Mr. Bernanke was "visited" by the ghosts of Adam Smith and John Maynard Keynes in the March/April 2010 issue of "Social Education" as these two famous economists debated the economic recovery (see EJ878912). Mr.…

Students with an understanding of economics are better equipped to comprehend the forces that influence people's standard of living and overall financial well-being. Broad-based economic literacy supports an environment where students can participate in America's democracy as well-informed and responsible citizens, whose collective actions may…

The U.S. economy took a historic nosedive in 2007-2010. It was the worst downturn since the Great Depression of the 1930s. However, evidence is emerging which suggests the country is in the midst of an economic recovery. In February 2010, the U.S. Commerce Department reported that GDP rose at a 5.9 percent annual rate in October through December…

The recent financial crisis brought about dramatic changes in the way that the Federal Reserve, the nation's central bank, conducts monetary policy. One challenge for high school educators going forward will be to strike a balance between the teaching of traditional monetary policy and the teaching of the monetary policy used during these…

Debates over how to promote a healthy economy are pervasive once more, after decades when it seemed such debates had been put to rest. The market meltdown of 2008 ended a long string of years in which monetary policy reigned supreme. Monetary policy is the regulation of money and the banking system to influence economic variables. Its adherents,…

For the open economy, the workhorse model in intermediate textbooks still is the Mundell-Fleming model, which basically extends the investment and savings, liquidity preference and money supply (IS-LM) model to open economy problems. The authors present a simple New Keynesian model of the open economy that introduces open economy considerations…

Financial crises seem to have become the norm rather than the exception since 1992. The author examines the impact of a crisis of confidence and resultant capital outflows from a small and open economy and the possible policy options in response to such outflows, using simple tools and definitions that will be familiar to any money and banking or…

This essay compares Germany's persistent financial disequilibrium with the balance of payments situation in the United States. Delivered at a Symposium on German Economic Growth and Stability, the author concentrates on Germany's balance of payments surplus and presents U.S. figures mainly as a point of comparison. The material on Germany has been…

Describes the program at Northwestern University where the university became a lender in the Federally Insured Student Loan Program in cooperation with a large bank. (Author/PG)

COMMERCIAL BANKS ARE EXPECTED TO PLAY AN INCREASINGLY IMPORTANT ROLE IN THE EXTENSION OF CREDIT UNDER THE HIGHER EDUCATION ACT OF 1965, AND BANKERS' ASSOCIATIONS ARE ACTIVELY PARTICIPATING IN THE DEVELOPMENT OF THIS PROGRAM. HOWEVER, THE EXTENT OF COMMERCIAL BANK PARTICIPATION CANNOT BE ENTIRELY INSULATED FROM THE BROADER PROBLEMS ASSOCIATED WITH…