Government buys trasury bonds which gives banks more cash to lower interest rate, increasing investment and number of jobs.

-hoarding funds will cause unemployment to not budge.

Elements of an ideal market: information flowing smoothly, enforcement of contracts, promoting competition, property rights, human rights, correcting externalities.

creates inequality as a result but has an equality of opportunity.

Separation of investments and commercial banks.

Inflation can be used by debtors to borrow more.

Unabated capitol flow causes an appreciation of currency which negatively affects exports (since no one can afford the product).

Solution: Sterilization

Dutch discovered oil and sold it off.

1. Service the debt: Absorb all the states debts and pay off in full.

2. Create Bank of United States to create credit and oversee the printing of money.

3. Taxation: protection of infant industries and taxation of alcohol.

1. Kill BUS II (LOL, DUMBASS)

- moves money to pet banks.

- people invest in west and cause real estate bubble (money supply increases 50% increasing speculation)

2. Pay off all the debt

Borrow from rich via bonds.

Increase debt.

Increase money supply ->increase inflation.

Increase taxes.

Increase debt (backed by cotton bonds)

Inflation at 700% due to money supply.

1. Fiscal Discipline
2. Reordering Govt Spending
3. Tax Reform
4. Liberalization of interest rates
5. Competitive exchange rates
6. Trade liberalization
7. Liberalization of Foreign Direct Investment
8. Privatization
9. Deregulation
10. Enforcement of property rights

Rule of Law: good laws and good enforcement

Good Institutions: Solid funding towards social programs.

Income and Wealth Distribution.