Easy Economics

mess?What are entitlements?So will Social Security be eliminated?Chapter 5: THE FED page 114This very powerful institution performs a kind of magicIf the Federal Reserve can't prevent banking failures, who needs it?So what does the Fed do?What's monetary policy?Why not just make as much money available as people want?How does the Fed set monetary policy?How does the Fed increase and decrease the amount of money available in the economy?Where does the Fed get the money to buy bonds?So the Fed doesn't print money?How does the Fed destroy money?But where does it go?How does the Fed's buying bonds on Wall Street increase the amount of money in the pockets of ordinary consumers and businesses?Does the Fed's selling government bonds on Wall Street decrease the amount of money in the pockets of ordinary consumers and businesses?How does the Fed influence interest rates?What's the Fed funds rate?Does the Fed have any control over rates on longer loans, such as car loans and mortgages?Chapter 6: HIGH-FLYING FINANCE page 174The Wall Street elite can make the planet trembleWho were the first financiers?How did Wall Street and big-time finance get started?How do big companies finance themselves today?How do new high-tech companies get financed?What caused the financial crisis of 2007-2009?What is leverage?How do you "short" a stock?What are hedge funds?What are private equity funds?What are derivatives?Why do derivatives have a bad name?What's a speculative bubble?Chapter 7: GLOBALIZATION page 202Nowhere to hide: Everywhere is connected to everywhere elseWhat is globalization?Can Americans own and operate companies overseas?What are financial and capital flows?Is globalization good or bad?How does trade affect inflation?What is the balance of trade?Must a country be in balance with every trading partner?What happens when a country runs a trade deficit?What is the balance of payments?Is it bad for a country when its currency is cheap?Do countries manipulate currencies to keep them cheap?What does the World Trade Organization do?What's the World Bank?What's the International Monetary Fund?What is the G-20?What is the World Economic Forum?Ripples and Waves page 236What happens next? How to anticipate the possible consequences of economic eventsKey Words and Phrases page 240A glossary to help you understand a complex economic worldIndex page 250