M2: Money

Optional supplementary readings:
Discussion questions:

Please take part in at least two of the following discussions. As well as posting yourself, you should also respond to other people’s posts – we recommend you post at least two replies:

1. Explain in your own words (2-3 sentences) how money is created by banks.  Does this system work well or not?  Is it fair for banks to be in charge of managing the money supply?  How would you change it to make it more fair and productive?

2. Talk to another person (or people) amongst your circle of acquaintances about money. These could be friends, family members or work colleagues. What is their perception of money? How do they describe what it is? Introduce some of the ideas introduced in this module. How do they react?

3. Use your knowledge and do some internet research to answer this question. In this module we criticise banks and the financial system for their role in the economy.  What exactly are banks being criticized for?  Do you think the banks deserve this criticism?

4. Listen to the interview with Michael Merrill. Which of his ideas did you find interesting, new or surprising?

5. Read about Gringott’s bank, the wizards’ bank in the Harry Potter series. How does this contrast with the workings of the real-life banking system?

Assignment:
Explain how the credit-money system works and why it has been viable over the last 30 years. What are the advantages and disadvantages of this system? How can it be reformed so it better serve the needs of the society.

2-3 pages or 750 words.

 

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