The video documents two conflicting views of the roles of government in the management of the economy.

On the one hand, John Maynard Keynes believed that the government should actively manage the economy - spending money and follow easy monetary policy in bad times to stimulate the economy, and save money in good times. This is Keynesian economics that serves as the foundation of macroeconomic policy in most Western economies after WWII.

On the other hand, Friedrich von Hayek believed that the market works best and the government should play only a minimal role in the management of the economy. Margaret Thatcher, Prime Minister of the United Kingdom, and President Ronald Reagan, and economist Milton Friedman were among strong followers of Hayek's free-market belief.

This video is about 2 hours long. You can watch the video using the link below, and answer the attached 10 questions.

https://archive.org/details/commanding-heights-1Links to an external site.

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Questions based on the Commanding Heights video - Episode One: The Battle of Ideas

1. Summarize John Maynard Keynes' idea about the roles of government in economy.

2. Summarize Friedrich von Hayek's idea about the roles of government in the economy.

3. How Hayek's idea is different from Keynes' idea? Whose idea have gained acceptance in recent years (up to President Reagan's time)?

4. What happens to prices, availability of goods, and the economy when the West Germany government imposed price control right after WWII?

5. What happens to prices, availability of goods, and the economy when the West Germany government abolished price control?Please be specific in your answer.

6. What happens to prices and availability of gasoline when the President Nixon imposed wage and price control? WasPresident Nixon's wage and price control program successful in controlling inflation?

7. President Carter appointed Professor Alfred Kahn as Chairman of the Civil Aeronautics Board. How did Professor Kahn deregulate the airline industry? Was Professor Kahn's effort to deregulate the airline industry successful? What happened to the number of airlines' employees, passengers, and ticket prices before and after deregulation?Please be specific in your answer.

8. What policy did Mr. Paul Volcker, the former FED Chairman, use to tame inflation? Please be specific in your answer.

9. How successful was Paul Volcker's effort to tame inflation?Please be specific about inflation rates before and after in your answer.

10. Was Ms. Margaret Thatcher, former U.K. Prime Minister, successful in her effort to privatize U.K. key industries such as coal mining, electricity, water, and steel? What was the impact of her privatization effort on on the U.K. economy?