Commanding Heights

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Econ 251
4/10/13
Commanding Heights
Commanding Heights Episode 3
The new rules of the game talked about a more recent global market. This episode related to our class material in multiple ways. I heard multiple economic vocab word used that helps relate to class material. First being bonds, which is a debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate. Balance sheet was another word used and that is an account statement for a bank that shows the sources of its funds as well as the uses of its funds. Central bank was also used a few times and the book defines that as a banker’s bank: an official bank that controls the supply of money in a country. Federal Reserve Bank was used also and that is one of the 12 regional banks that are an official part of the Federal Reserve System. The final word that I caught was money. The book defines money as any items that are regularly used in economic transactions or exchanges and accepted by buyers and sellers.

There were multiple lessons to be learned from the economic history of the episode. It stated that with more and more nations moving their money into a more global market, they need to be careful. With the developments of new technologies and ideas, this can change economic ideas and unforeseen events could occur. This could negatively hurt any economy. It also talked about how a single global market is now the reality. This spreading throughout a lot of economies and if it is not controlled correctly it can turn bad. The episode also talks about how with a rapid expansion of trade, it is making a wide difference between people and can cause terrorism and other acts of violence. I think another good lesson to be learned had to do with capitalism. A lot of third world countries have bad economies because they try to be capitalist. It does not work there because they do not have the right laws in place. For it to work a...
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