Tuesday, May 10, 2011

Mankiw's Three Big Questions

Greg Mankiw in the New York Times Economic View column posts the three big questions that are currently perplexing him. They are:

1. How long will it take for the economy's wounds to heal?

2. How long will inflation expectations remain anchored?

3. How long will the bond market trust the United States?

These are good questions, and Mankiw's explanation of why the answers matter are good. If students can understand that these are the important questions to ask, they have learned a lot.

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