watch video on commanding heights and answer the following questions…

Section 1: Short essays (50 points)

According the video The Commanding Heights what were the main ideas of Frederich von Hayek? Which politicians in the 20th century followed Hayek’s ideas?

According to the video The Commanding Heights what were the main ideas of John Maynard Keynes? Which politicians in the 20th century followed Keynes’ ideas?

Describe in general strokes how and when did the US and the UK adopt Keynes’ ideas.

Describe in general terms how and when did the US and the UK adopted Hayak’s ideas.

What are the implications of believing the economy is like the forces of nature? What are the implications of believing that the economy is like sophisticated machinery?

Discuss the role of incentives in the Soviet mine and in the case of India’s import tariffs.

Who is Jeffrey Sachs? What role did he play in Bolivia and Poland? What is shock therapy?

What were the conditions that made shock therapy necessary in Bolivia?

What were the conditions that made shock therapy necessary in Poland?

How has the Polish economy done since then? Provide some data to answer this question, for example, income per capita.

Since 2008, in the US has the pendulum swung in terms of dominant economic ideology? Provide some evidence to support your argument.

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