http://www.slate.com/articles/business/the_dismal_science/1998/08/babysitting_the_economy.html Write an essay answering the following questions. 1. Summarize the Article 2. Discuss the scrip – which of the functions of money does it
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http://www.slate.com/articles/business/the_dismal_science/1998/08/babysitting_the_economy.html
Write an essay answering the following questions.
1. Summarize the Article
2. Discuss the scrip – which of the functions of money does it have? Explain. Is there an alternative method
the babysitting co-op could have implemented to make sure everyone does their fair share?
3. How did the co-op handle the recession? Which type of policy did they implement? Why do you think
this solution worked while the legislation did not?
4. Krugman imagines that the co-op might have eventually allowed couples to borrow extra coupons and
repay them later. Which concept that we learned in our class does this relate to the most? What does
allowing for borrowing add to the economy?
5. Why did the low amount of scrip lead to a recession? Name one way the co-op might have responded
that would have caused the recession to turn into a depression. Describe in a few sentences how the
Great Recession is different from this recession
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