Mercantilism as a political and economic approach to foreign trade. The fallacy of defining a country's wealth as money. The inevitability of trade wars that stem from this philosophy.
Basic view of the flow of economic activity and money in an economy with 2 sectors - households and businesses. Explains the Classical view behind savings always equating to the level of investment spend (borrowing), to ensure equilibrium in the loanable funds market.
Supply side of markets, equilibrium, how markets adjust to shifts in supply or demand. Includes the five forces that shift supply and the distinction between "supply" and "quantity supplied."
Short run equilibria and long run forces affecting an economy explained using aggregate demand and supply. Integrates long run Classical thinking with short run Keynesian analysis.
Keynes' arguments on how monetary policy is of limited value in times of a severe recession or depression. This involves two considerations: the inelasticity of investment demand due to business pessimism; and the development of a liquidity trap, when interest rates have been forced near the zero limit.
How a bond works, how bond prices change inversely with interest rates, and how open market operations by the FED influence interest rates and the economy.
Graphical explanation of the Classical model of macroeconomic aggregate supply and aggregate demand, also explaining the rationale for a small role for government in the management of the macro economy.
Budgets, budget deficits & surpluses, debt & government spending. The contrasting arguments for austerity versus stimulus spending (borrowing) when debt is high and the economy is in recession.
![Stock Market Speculation in the 1920\](http://i.ytimg.com/vi/wNzRlHbQwxA/2.jpg "Stock Market Speculation in the 1920\")
