To explore this topic further, I will use phone, email and network video call interviews with several experts in the field of economics!
I choose my mom Stephania Wang as my interview expert.
Here are the questions I’m going to cover, and I’ll be back in 3 weeks to answer these questions with principles, issues, etc.
Question：
- In economics, we often use the wealth effect (also known as the Pigou effect) to describe a decline in the price level, so how does it cause the aggregate demand curve to slope downward?
- What factors do you think might cause the economy to move down or along the aggregate demand curve?
- In addition, the factors that cause the aggregate demand curve to shift outward (i.e., to the right) are important, can you tell us more about them?
- The factors that shift the long-run aggregate supply (LRAS) curve outward (to the right) are also very important. Why do you think the LRAS curve is considered vertical at the full employment level of output?
- We all know that Bobby believes that investing in markets, such as financial markets, is very efficient. So how do you think we should interpret the phrase: aggregate supply and aggregate demand to explain why this leads Bobby to believe that the slowdown will “end on its own”?
- John Maynard Keynes called household and business optimism animal spirits, which he believed could help economies recover from recessions. How can we describe how this optimism, based on a fund model of savings and investment, would lead to higher investment and output?
- In the previous question, we mentioned optimism, so how do you think the increase in optimism will affect the aggregate demand/aggregate supply (AD/AS) model?
- Now suppose the Federal Reserve announces that it will raise interest rates, perhaps several times over the next 2-3 years. Some economists expect the discount rate to rise to at least 4.5% from the current 0.5%. What do you think is likely to happen to the deposit interest rate paid by the public? And what happens to the value of the US Treasury bonds held by the masses?
- Can you talk about what might happen to banks if we do not take timely action to change the composition of individuals’ assets and/or liabilities when the majority of depositors want to withdraw their funds?
- What do you think would happen in the beginning if households in the economy decided to take money out of their checking account deposits and hold it as currency?
lay of the land:
Basic issues/controversies: One biggest question is Compliance
General context of problem:when some extra big banks or company fall into trouble, people will not know it due to Consider the economic uncertainty caused by fear after the collapse. 2022 April FDIC reported that the bank number went down by 2, however the asset management went down by 120 billion.
major resources:America Banker assistance and help to connect experts
general context of problem spaces:
These topics fall within the scope of macroeconomics and focus on concepts such as wealth effects, aggregate demand and aggregate supply curves, long-run aggregate supply, market efficiency, the impact of optimism on investment, Federal Reserve policy, the public deposit rate, and the potential impact of financial decisions on banks and the broader economy. These questions explore the complex dynamics of economic theory, policy, and behavior in a variety of contexts.
**Ps: https://en.wikipedia.org/wiki/History_of_banking#Major_events_in_the_ history_of_banking