[View:http://community.cengage.com/GECResource/themes/g ew/utility/ :550:0] Bridgewater's posting of the video Ray Dalio --a billionaire hedge-fund manager of Bridgewater--has made a video that explains the economy. It is pretty practical, and describes the economy in a mechanistic, cause-and-effect way. Says Dalio: “ While I kept it confidential until recently, I now want to share it because I believe that it could be very helpful in reducing big economic blunders, if it was more broadly understood, I believe that most influential decision makers and most people cause a lot of needless economic suffering because they are missing the fundamentals." Ray Dalio is not a typical economist--he disagrees with the monetary policy espoused by Milton Freeman, and does not think that the economy can be controlled by influencing the money supply. [ According to the Street.com , “M is the money supply; V is velocity — the number of times per year the average dollar is spent; P is prices of goods and services; and Q is quantity of goods and services. The equation suggests that if V is constant and M is increasing, there must be an increase in either Q or P.” ] Ray Dalio is not the only original thinker who has been posting his economic theories on YouTube. For those of you interested in the economics of the recent government shutdown, and its part in the economic cycle, I have provided another YouTube video. Listening to both of the videos can be quite a concise economics education. One may be more effective than the other: you be the judge. Source: " Government Shutdown Explained ," by Casey X., YouTube, October 12, 2013. " Economic Theory, Via YouTube and Cartoon, " by Andrew Ross Sorkin, New York Times Dealbook , October 22, 2013. Follow up: According to Dalio, what is the most important part of the economy? Why? Who do think more credibly explains of the economy--Dalio or Casey X.? Explain the plusses and minuses of each lecturer's approach. Explain the debt-swing cycles described by Dalio. If Ray Dalio were your advisor, what economic policy would you embrace, if you were being considered (as is Janet Yellin) for a position as the head of the Federal Reserve?
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