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AMERICAN ASSOCIATION OF UNIVERSITY PROFESSORS: An association of university and college faculty established in 1915 to protect academic freedom. Commonly abbreviated AAUP, this association is the closest thing university faculty have to a labor union. While it does engage in some collective bargaining functions with specific universities, similar to traditional labor unions, its primary function is to ensure that faculty maintain intellectual or academic freedom from political of social pressures.

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Lesson 18: Banking | Unit 5: The Economy Page: 23 of 24

Topic: Problems <=PAGE BACK | PAGE NEXT=>

When banks are properly controlled they provide benefits, but when they get out of hand they can do a world of bad.

Problems:

  • When a bank fails to maintain adequate reserves, it runs the risk of starting a chain reaction that could cause economy-wide financial instability.

Instability:

  • Banking regulations have lessened, but not eliminated, banking instability problems.
  • Controlling instability is one challenge of monetary policy.

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MACROECONOMIC THEORIES

Scientific theories that seek to explain phenomena associated with the macroeconomy. The primary phenomena investigated are unemployment, inflation, and the level of aggregate production. Macroeconomic theories also inevitably provide policy recommendations intended to improve the performance of the economy and to correct macroeconomic problems. A few of the more noted macroeconomic theories are: Classical economics, Keynesian economics, aggregate market (AS-AD) analysis, IS-LM analysis, Monetarism, and New Classical economics.

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APLS

BROWN PRAGMATOX
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Today, you are likely to spend a great deal of time at an auction hoping to buy either a key chain with a built-in flashlight and panic button or a green and yellow striped sweater vest. Be on the lookout for poorly written technical manuals.
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The earliest known use of paper currency was about 1270 in China during the rule of Kubla Khan.
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-- Helen Keller, author, lecturer

IADB
Inter-American Development Bank
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