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.