Lesson Plan

Objectives:

1. The position of the U.S. dollar in the world currency market

2. U.S. Monetary Policy in the Covid Era (2020-2021)

3. What impact will these initiatives have in the future?

 

Lesson: 

• What is the difference between the United States and European nations? Culture, people’s habit… (hook)  - 2min

• Provide a handout with the choice of economy, government, geography, culture…

• The handout also will include a question on “What are the consequences of financial waterproofing”, will provide life experience and give people an idea, this will be used at the end of class.

• Ask anyone have ideas

• Provide some examples that going to talk about later

• The higher status of the dollar in the world

• The United States and the European Union differ at the political level (one country and a coalition of countries)

 

• Why is the dollar so powerful? | CNBC Explains. 7 min

• Consumer News and Business Channel

• Explaining dollar hegemony from the perspective of the financial media

 

• Briefly introduce and explain the ideas in the video, mainly on the U.S. dollar’s position in world trade and market. Source (Milesi-Ferretti, Gian Maria) & (“The U.S. Economic Recovery in International Context.”) & (Šteinbuka, I., Austers, A., Barānovs, O., & Malnačs, N) & (“The U.S. Dollar as the World’s Dominant Reserve Currency.”) - 4 min

• The US dollar is the international settlement currency 

• A much higher proportion of world trade is denominated and settled in dollars than in other currencies, and many international trades not related to the United States are widely denominated and settled in dollars. 

• Follow up with The dollar accounts for more than 40% of international payments, according to SWIFT, but if you look only at international trade, it accounted for 87% and the euro 7% as of June 2020.

• The US dollar is an international investment and financing currency 

• In the international bond market and international credit market, the share of US dollar bonds and US dollar payments for goods is large.

• The dollar is widely recognized by many countries, but the euro's influence is mainly in Europe.

 

• What does the U.S. do for the recovery of the economy? Source (Amaro, Silvia) & (Sanfilippo, Joseph Quinlan and Lauren). 7-9 min

• In handout: 2 - 3 min

• What do you think is most important for the recovery?

• How much money do you believe the U.S. printed during Covid-era? 

• Do you think COVID-19 is over for us?

• What does the U.S. do for the recovery of the economy? Source (“Finance and Development.”) 1 min

• Explain the timeline of covid

• Compare with what America does to the economy and the curve of the recovery speed.

• Why can the United States do this 

• Slides show questions, ask classmate 1 min 

• What are the consequences of financial waterproofing 3 - 4 min

• Introduce how much money America have printed in these 2 years. 

• Compare with history (world war II), America cost. This started on December 7, 1941, the Japanese attacked Pearl Harbor.

 

• What will be the impact in the future？

• Explaining that the impact of COVID-19 on us is not over, it is more like a trigger, more industries affected in the COVID-19 era, and the economy is now just beginning to affect our lives.

 

Materials: 

• Google Slides