I learned most from the speeding analogy. No posted speed limit, and a delayed reaction to both the gas and break pedals cleared up my original confusion. The Federal Reserve must facilitate our rate of economic growth, but it's harder than it sounds because nothing is clear, or marked, or produces immediate reactions. Another thing that strongly registered with me is that the value of any type of currency lies in its purchasing power, the fact that other people accept them (dollars) too, andthe fact that it is scarce. It's scarcity is controlled also then by the fed reserve. We covered this next part briefly in class, but it made sense then how Governments can, and have caused crazy fast rates of inflation because inflation is good for those in debt. Hope was reestablished though, when Wheelan highlighted that Monetary authorities must be responsible and so they are appointed not elected. Smart.
One thing that doesn't quite make sense... Inflation tax?
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