Talk given at Southern New Hampshire University on April 1, 2009

We have today both a financial crisis and an economic crisis. The financial crisis speaks to what is going on in the financial sector of the economy – the commercial banks, the insurance companies, the former investment banks.

Posted: March 2009

In Chapter 14 of both Economics, 9e and Macroeconomics, 9e, we discuss the inverse relationship between bond prices and interest rates. The inverse relationship between bond prices and interest rates can be helpful in looking at the current economic and financial situation. Because of the bad financial and economic news, recently there has been a run to quality. Specifically, people have been running to (buying) Treasuries, which they consider to be safe. Increasing demand for Treasuries leads to rising prices (of Treasuries), thus lowering the interest rate (or yield) received by owning Treasuries.

Posted: February 2009

Recently, Congress passed a $787 billion fiscal policy package that President Obama signed into law. The package consists of government spending increases and some tax cuts. If you are teaching macroeconomics right now, it is the perfect time to discuss fiscal policy, the multiplier, and crowding out (topics all covered in Arnold Economics 9e and Arnold Macroeconomics 9e).

Posted: February 2009

I believe I am correct in saying that there is no best-selling economics principles textbook on the market today (including my own) that discusses the Austrian School of Economics or, in particular, the Austrian Business Cycle Theory (ABCT). Lately, though, the ABCT has been discussed in a few economics blogs and in the press. If you check out these blogs, much is being said about Austrian economists having predicted the current financial and economic crises. Here are three of the blogs: