Tuesday, June 30, 2009

The Fundamentals

That's basically what we've been learning in Macroeconomics - the fundamentals. Without a strong foundation, all the higher level thinking and problem solving that goes on in economics would be harder to grasp. For example, today we went over money growth and inflation. The way we're taught the concept is that, in a perfect closed economy, without any outside forces changing the behavior of the market, when the government prints more money, it inevitably leads to inflation. Also, the central bank (ex. the Fed) can control how smaller banks do their business by changing interest rates and by selling/buying bonds.

This led to a discussion about our current economy. A simple model like the one above, was able for the most part explain what happened in the economy. However, of course, our current state of market is a ton more complicated and intricate than what a basic intro to macroecon model of a closed economy can tell.

My day, in all,was spent well. Joseph and I got breakfast at the Sharpe Refectory, the new place that opened which is a whole lot closer than the V-dub from where we're staying; It's so convenient now. After meeting with Ms. Kent, my floormates and I went to see Transformers 2 in IMAX. Holy cow it was thrilling to see all the explosions fill my plane of view and the booms shake my body. It was good to be able to have something to do in the afternoon seeing that most of the time, there aren't many things to do on campus. My RA tells me its more exciting during the school year, I believe him.


Charles Tillman Ramsey said...

Yes, the fundamentals are very important in life. Getting up in the morning is a fundamental part of the day. So if you learn the fundamentals, like in math, which is based all on fundamentals you will have a better chance of succeeding.

Dennis, has Brown grown on you? It appears in reading your posts that you have come to like Brown. I know that when we spoke that you really enjoyed Harvard and had some interest in Columbia. Please bring us up to speed on how you have evolved with your college selections, I am interested.

You are a hard working student that enjoys helping others. This is a great talent and I am hopeful that you will continue to reach out and work with others. I also hope that your time in the Ivy League Connection has been useful and that your initial impressions and fears have not been realized.

I recall the days that you were hesitent about being part of this project. I would love to hear your thought and views about how we have meet your expectations. Please let us know.

Take care.

Charles T. Ramsey, Esq.
School Board Member
West Contra Costa
Unified School District

Don Gosney said...


I know you're learning a lot but please tell that there's more to Brown than just seeing Transformers II on IMAX. Didn't you just see that a few days ago in a regular theatre?

I know that when they teach you about economics they have to teach you basic theory but it sure seems as though they're sugarcoating things. First your discussion about the GNP and now how a basic closed loop economy works--it's as though they're having you live in a vacuum.

The real world has a few more twists and turns but you now that already. Even in your day to day life you've seen this.

You still have a couple more weeks of this so I'll look forward to seeing how all of this progresses.