Friday, March 27, 2009

On the Fed and Housing

Today's edition of The Wall Street Journal has what I will call a mini-symposium on the question "Did the Federal Reserve Cause the Housing Bubble?" (Free content at this time.) It's quite good. Its value derives from the wide-ranging opinions offered by a variety of very qualified authors.

None of the individual statements are very long, so they could be distributed in class to small groups and used as a basis for a discussion.

On another somewhat related note, you might soon get to see messages from the Fed at your favorite cinema multiplex.

I welcome your comments.

This post relates to the following Keystone Economic Principles:
1. We all make choices.
2. There ain’t no such thing as a free lunch.

3. All choices have consequences.
4. Economic systems influence choices.
5. Incentives produce “predictable” responses.
9. Prices are determined by the market forces of supply and demand…and are constantly changing.

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