Money Matters: The Importance of Global Cooperation
The Money Matters: The Importance of Global Cooperation online exhibit consists of six segments. Each describes a period in the evolution of monetary policies
worldwide. The Money Matters Curriculum suggests ways for teachers to implement the segments in business, history, geography and economics classes.
14-18 year olds (9-12 graders, US) studying Social Studies and Economics in school.
Conflict and Cooperation (1871 - 1944)
- Era of the gold standard
- Relationship between currency and gold
Destruction and Reconstruction (1945 - 1958)
- Europe after World War II
- Role of the U.S. in reconstructing Europe
- Inflation on the European continent
- Trade deficits far and wide
The System in Crisis (1959 - 1971)
- Rise of the U.S. as a world economic power
- Inflation and the balance of trade deficit in the U.S.
Reinventing the System (1972 - 1981)
- Beginning of floating exchange rates
- Use of the "managed float"
- The European Union
- Role of the IMF
Debt and Transition (1981 - 1989)
- Risky loans to developing countries, default and monetary crises
- Effect of recession on loan repayment
- Effect of bad debt on industrialized nations
Globalization and Integration (1989 - 1999)
- Eastern Europe emerges from Socialism
- Transition from command to market: quick for some, slow for others
National Economics Content Standards
Standard 5 — Gain from Trade
Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations.
Standard 9 — Role of Competition
Competition among sellers lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
Standard 10 — Role of Economic Institutions
Institutions evolve in market economies to help individuals and groups accomplish their goals. Banks, labor unions, corporations, legal systems, and not-for-profit organizations are examples of important institutions. A different kind of institution, clearly defined and well-enforced property rights, is essential to a market economy.
Standard 11 — Role of Money
Money makes it easier to trade, borrow, save, invest and compare the value of goods and services.
Standard 12 — Role of Interest Rates
Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, thus affecting the allocation of scarce resources between present and future uses.
Standard 15 — Growth
Investment in factories, machinery, new technology, and the health, education, and training of people can raise future standards of living.
Standard 16 — Role of Government
There is an economic role for government to play in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights and attempt to make markets more competitive. Most government policies also redistribute income.
Standard 17 — Using Cost/Benefit Analysis to Evaluate Government Programs
Costs of government policies sometimes exceed benefits. This may occur because of incentives facing voters, government officials, and government employees, because of actions by special interest groups that can impose costs on the general public, or because social goals other than economic efficiency are being pursued.
Standard 19 — Unemployment and Inflation
Unemployment imposes costs on individuals and nations. Unexpected inflation imposes costs on many people and benefits some others because it arbitrarily redistributes purchasing power. Inflation can reduce the rate of growth of national living standards, because individuals and organizations use resources to protect themselves against the uncertainty of future prices.
Standard 20 — Monetary and Fiscal Policy
A government's budgetary policy and its monetary policy influence the overall levels of employment, output and prices.
Money Matters Online Exhibit