Discussion Questions:

1. If a country goes bankrupt and cannot pay its debts, which of its responsibilities should take precedence: paying bondholders or paying the pensions of its employees?
2. What changes in the guaranteed-jobs program might be made to fit your moral sensibilities about governmental responsibilities?
3. Wayne Angell, a former Fed governor, stated in an editorial, "The Federal Reserve should get back on track getting inflation rates so low that inflation would no longer be a determining factor in household and business investment decisions." Mr. Angell believes inflation lowers long-term growth.

• How does inflation affect household decisions and, consequently, growth?