1. The complete version of the Thomas Sargent quote that began this chapter is “Persistent high inflation is always and everywhere a fiscal phenomenon.” Why did Sargent include the modifiers “persistent high”?

2. In the lecture we talked about the importance of information asymmetries for the functioning of (credit) markets. In 2001, George Akerlof, Michael Spence and Joseph Stiglitz were awarded the Nobelprize in Economics for “for their analyses of markets with asymmetric information”.

Go to http://www.nobelprize.org/nobelprizes/economics/laureates/2001/popular.html and read the report. Summarize the ideas of George Akerlof and explain why they are important for banking and credit markets. 

COMIC (6+ panels) We will end the semester with a brief unit on graphic narrative. Comics employ a lot of the same techniques as written narratives and poetry, particularly in their structure (setup followed by concluding turn). Most people can’t draw very well, and we don’t have a lot of time for this unit, so I’m expecting very rough sketches, stick figures, and messy diagrams with lots of notations. Designers who commission art often write artist briefs (short descriptions of what they want the art to convey, the style and colors, the characters, etc.). You will also write short artist briefs to go along with each panel of your comic, as though you were hiring an artist to produce it for you. Your final comic might look similar to a storyboard for a film.

original work and on time.