Sociology 323 Economy & Society February 7 – Jim Stanford Part 4.
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Transcript of Sociology 323 Economy & Society February 7 – Jim Stanford Part 4.
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Sociology 323
Economy & Society
February 7 – Jim Stanford Part 4
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Video About Money
The Money Myth
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Question From Previous Class -
Gender Wage Gap
Wage Gender Gap ControversyCanadian ParliamentStatistics CanadaWages - Pipelines
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Overview of Midterm Exam
The midterm exam will consist of 3 parts.
1. Definitions – Answer 10 of 112. Short answer – Answer 2 of 33. Essay Questions – Answer 1 of 2
Time allocated for each part.
1. Definitions – Answer 10 at 5 minutes = 50 min2. Short answer – Answer 2 at 7.5 minutes = 15 min3. Essay Questions – Answer 1 at 15 minutes = 10
min
Total = 75 minutes
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Overview of Midterm Exam
You need to study:
Coursepack – Karl Polanyi: The Great Transformation, Chapter 4 and 5
Book – Jim Stanford: Economics for Everyone, Part 1 – 4
Power Point Lectures available at:
http://erikchevrier.ca/course/economy-and-society
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Examples of Questions
Definitions:
DepreciationExternalities Transfer Payment
Short answer:
Please name 4 out of the five activities performed by profit seeking companies that are socially useless.
Essay question:
What does Karl Polanyi think of Adam Smith's view that the division of labour in a society is dependent upon the existence of markets?
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Money and Banking
Modern money comes in many shapes and sizes:
- Currency- Deposits- Credit
Money has many economic uses:
- Means of payment- Unit of account- Store of value- Facilitates exchange
Money is important to capitalism. In capitalism:
- Accumulating money became the goal of production
- In initiating production, new money is created- Private-profit seeking financial institutions
control the creation and destruction of money
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Money
A Simple Hierarchy of Money (Perry G Mehrling)
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Inflation, Central Banks and Monetary Policy
Price Level – Overall level of absolute prices in a society.
Inflation – Increase in the overall level of absolute prices in a society.
Deflation – Decrease in the overall level of absolute prices in a society.
Nominal wages – wages measured in dollars.
Real wages – purchasing power of wages. Accounts for inflation and deflation.
You can measure inflation with various measures like the Consumer Price Index
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Causes of Inflation
The following factors can lead to inflation:
1 – Demand-Pull Inflation – Results from excess spending
2 – Higher labour costs
3 – Higher profits
4 – Rise in raw material costs
5 – Can be self-fuelling
Central banks try to control inflation through monetary policy
Bank of Canada
Bank of Canada Video
Monetary vs Quasi-Monetary Policies
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Stock Markets, Financialization and
PensionsIn order for companies to grow, they need investments to maintain their fixed and working capital expenses.
These can come in the form of:
– Loans– Bonds– Equities
Finance capital has become a major factor in the world economy.
Pension Plans
Pay-as-you-go planPre-fundedDefined contribution