Before class Tuesday, 09/14
Read: CORE Section 10.1
Read: Irungu (2020)
Watch (6:51): Schamus (2014)
Before class Friday, 09/17
have tried all of Weekly Review 2
Material Links
CORE project. (2021). “Banks, Money, and the Credit Market: Money and Wealth.” The Economy. https://www.core-econ.org/the-economy/
Irungu, Irene. (2020). “The Drivers of Inflation During the COVID-18 Pandemic.” The Elephant. 9 October. https://www.theelephant.info/data-stories/2020/10/09/the-drivers-of-inflation-during-the-covid-19-pandemic/
Schamus, James (Director). (2014). That Film About Money [Film]. wetheeconomy. https://wetheeconomy.com/films/that-film-about-money/
1. In Schamus (2014), James says that money isn’t a thing and that we have to believe in it for it to work — do you think that’s true?
2. I learned that the Fractional Banking System is where banks keep only a fraction of their deposits and loan out the rest which then gets loaned out by other banks.
3. My favorite part was when Professor Suresh Naidu talks about trust and all the adornments we put on our currency. My least favorite part is James’ hat.
The money is true. Actually, I think people need to believe money is true to makes it works because money is a medium of purchase and exchange goods. In James’ video, he points out the bank also would be a medium. The way of banks to earning money is by lending out the money by another people’s debit, then they earned high interest. If people don’t believe the money is an acceptable payment or banks’ system, it cannot works.
Moreover, the concept of wealth is interesting. The wealth also includes health, skills, and ability and there would help you create value. Also, I learned the theory of bathtubs is vivid. The value would decline over time, it is depreciation.