How does the Federal Reserve function and why is it necessary?

Charles Wheelan, an economist and author, has not specifically detailed his views on international trade. However, based on his economic philosophy, we can infer some possible perspectives.

Wheelan is a proponent of Keynesian economics, which suggests that markets should be allowed to work themselves out without government intervention. This could imply that he supports free trade, as it allows markets to interact and compete without government-imposed barriers.

Strengths of international trade, according to this perspective, could include increased competition, access to a broader range of goods and services, and the potential for economic growth and development.

However, the weaknesses could be that it might lead to job losses in certain sectors due to competition with cheaper foreign labor, and it could potentially exacerbate income inequality, as benefits of trade may not be evenly distributed.

Remember, these are inferred views based on Wheelan's economic philosophy, not his explicit statements.

Charles Wheelan has not specifically discussed the strengths and weaknesses of externalities in his works. However, based on his economic views, we can infer some possible perspectives.

Strengths: Externalities can lead to innovation and growth. For example, a positive externality could be the development of new technologies that benefit society.

Weaknesses: Externalities can lead to market failures. Negative externalities, such as pollution, represent costs not accounted for in the market price, leading to overproduction and inefficiency.

Remember, these are inferred views based on Wheelan's general economic philosophy and may not represent his exact thoughts on externalities.

Charles Wheelan, a proponent of Keynesian Economics, believes in the self-regulating nature of markets. He suggests that government intervention often does more harm than good, disrupting the natural equilibrium of supply and demand.

One of the strengths of the market, according to Wheelan, is its ability to create wealth. He uses the example of Bill Gates to illustrate how individuals can amass significant wealth through innovation and entrepreneurship.

However, Wheelan also acknowledges the need for institutions like the Federal Reserve. This implies a recognition of potential market weaknesses, such as the inability to self-correct in times of financial crisis. The Federal Reserve, in this context, serves as a necessary mechanism to manage monetary policy and stabilize the economy.

In summary, Wheelan sees the market's strength in its capacity for wealth creation and self-regulation, but also recognizes its weaknesses, necessitating institutions like the Federal Reserve for stability.