Reading and Essay |

1. Please read the two books that I post and answer these 4 questions base on the two books. Please using the readings of Knoop and Lightner (Business Cycle Economics by Knoop,and explain the following: Question 1: What is a panic? Question 2: Explain how the early business cycle theories has contributed to modern macroeconomics Please read Aliber & Kindleberger, and explain: Question 1:Where did the idea come from and explain the role of Bagehot and the Currency and Banking schools in setting and developing their ideas in England, France and the US. Question 2:What is the idea behind the moral hazard argument. 2. Please DO NOT answer these 4 questions by your own opinions, just find the answer from the two books and by your own words (Do not copy anything form the book and do not use too much citation). 3. This assignment is supposed to be an essay and about 1500 long. 4. Once you start writing the essay, please put the page number where you find the answers.

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