Department of Economics and Finance
Macroeconomics (ECON 102), Summer 2020
Assignment 1
(Due Tuesday, July 21, 2020)
Refer to the following video from minute 14 to 31 (How the Economic Machine Works by Ray Dalio) to answer the following questions:
https://www.youtube.com/watch?v=PHe0bXAIuk0
1- Why interest rate works in recession but does not work in deleveraging?
2- When the central banks print money, what can they buy? How about the central governments?
3- What is a beautiful deleveraging?
4- What are the three rules of thumb that you would take away from the video?
