Teaching Ideas for Chapter 17:
Economic Policymaking
Monetary policy is primarily set by appointed officials (the Fed) while fiscal policy is primarily established by elected officeholders (the president and Congress). Ask your class to consider whether the difference between elected and appointed policymakers appears to have an effect in setting our nation's economic policy.
U.S. citizens frequently express concerns about the size of foreign investment in the United States (even though it still remains below that of most other economic powers). Survey your class to see what their reactions would be if other nations placed restrictions on American investments. An interesting class report could be based on U.S. resentment of French policies under Charles DeGaulle, at a time when the United States still had a positive international balance of payment and the French feared American intrusion into their economy and culture.
As a library assignment, ask students to research some of the methodological issues surrounding our standard economic measures such as unemployment, inflation, and the consumer price index. In what ways are these measures biased? What don't they measure about the economy? Are there any alternative measures of economic health that should also be considered in economic policy-making?