Friday, March 19, 2010
Monday: p. 519, #4-6
Finish the sentences:
Last week, what I liked least about the class was . . .
Last week, what I liked most about the class was . . .
Tuesday: p. 519, #8-9
p. 520, Analyzing Primary Sources, #1-2
Wednesday: p. 521, Preview Questions, #1-2
p. 523, You Decide, #1
What happened within Germany after the armistice?
Thursday: p. 525, Geography Skills, #1-2
p. 526, History Through Art, What were the names of the representatives of the Big Three Powers at the Paris Peace Conference?
p. 526, #4-6
Friday: p. 526, #8-9
What clause in the Treaty of Versailles particularly angered the Germans?
Russia, Iran, Nukes
Lenin’s View of Marx
In March 1917, Lenin was still in exile. As Russia stumbled into revolution, Germany saw a chance to weaken its enemy by helping Lenin return home. Lenin rushed across Germany to the Russian frontier in a special train. He greeted a crowd of fellow exiles and activists with this cry: “Long live the worldwide Socialist revolution!”
What was Lenin's plan when he arrived in Russia?
The Bolsheviks Seize Power
Lenin threw himself into the work of furthering the revolution. Another dynamic Marxist revolutionary, Leon Trotsky, helped lead the fight. To the hungry, war-weary Russian people, Lenin and the Bolsheviks promised “Peace, Land, and Bread.”
The Provisional Government’s Mistakes
Meanwhile, the provisional government, led by Alexander Kerensky, continued the war effort and failed to deal with land reform. Those decisions proved fatal. Most Russians were tired of war. Troops at the front were deserting in droves. Peasants wanted land, while city workers demanded an end to the desperate shortages. In July 1917, the government launched the disastrous Kerensky offensive against Germany. By November, according to one official report, the army was “a huge crowd of tired, poorly clad, poorly fed, embittered men.” Growing numbers of troops mutinied. Peasants seized land and drove off fearful landlords.
The Bolshevik Takeover
Conditions were ripe for the Bolsheviks to make their move. In November 1917, squads of Red Guards—armed factory workers—joined mutinous sailors from the Russian fleet in attacking the provisional government. On the battleship Potemkin (Russian: Броненосец «Потёмкин», Bronyenosyets Potyomkin), a mutiny occurred when the crew rebelled against the officers of the Tsarist regime. In just a matter of days, Lenin’s forces overthrew the provisional government without a struggle.
The Bolsheviks quickly seized power in other cities. In Moscow, it took a week of fighting to blast the local government out of the walled Kremlin, the former tsarist center of government. Moscow became the Bolsheviks’ capital, and the Kremlin their headquarters.
“We shall now occupy ourselves in Russia in building up a proletarian socialist state,” declared Lenin. The Bolsheviks ended private ownership of land and distributed land to peasants. Workers were given control of the factories and mines. A new red flag with an entwined hammer and sickle symbolized union between workers and peasants. Throughout the land, millions thought they had at last gained control over their own lives. In fact, the Bolsheviks—renamed Communists—would soon become their new masters.
In November, 1917, Vladimir Lenin sent Leon Trotsky to negotiate with the Central Powers at Brest-Litovsk. He wrote about these negotiations in his autobiography, My Life.
It was obvious that going on with the war was impossible. On this point there was not even a shadow of disagreement between Lenin and me. But there was another question. How had the February revolution, and, later on, the October revolution, affected the German army? How soon would any effect show itself? To these questions no answer could as yet be given. We had to try and find it in the course of the negotiations as long as we could. It was necessary to give the European workers time to absorb properly the very fact of the Soviet revolution.
In his autobiography Leon Trotsky explained why he signed the Brest-Litovsk Treaty.
On 21st February, we received new terms from Germany, framed, apparently, with the direct object of making the signing of peace impossible. By the time our delegation returned to Brest-Litovsk, these terms, as is well known, had been made even harsher. All of us, including Lenin, were of the impression that the Germans had come to an agreement with the Allies about crushing the Soviets, and that a peace on the western front was to be built on the bones of the Russian revolution.
On 3rd March our delegation signed the peace treaty without even reading it. Forestalling many of the ideas of Clemenceau, the Brest-Litovsk peace was like the hangman's noose. On 22nd March the treaty was ratified by the German Reichstag. The German Social Democrats gave their approval in advance to the future principles of Versailles.
What was the impact of the Treaty of Brest-Litovsk on Russia?
Civil War in Russia
After the Bolshevik Revolution, Lenin quickly sought peace with Germany. Russia signed the Treaty of Brest-Litovsk in March 1918, giving up a huge chunk of its territory and its population. The cost of peace was extremely high, but the Communist leaders knew that they needed all their energy to defeat a collection of enemies at home. Russia’s withdrawal affected the hopes of both the Allies and the Central Powers, as you read in Section 3.
withdrawal—(with draw ul) n. the act of leaving
For three years, civil war raged between the “Reds,” as the Communists were known, and the counterrevolutionary “Whites.” The “White” armies were made up of tsarist imperial officers, Mensheviks, democrats, and others, all of whom were united only by their desire to defeat the Bolsheviks. Nationalist groups from many of the former empire’s non-Russian regions joined them in their fight. Poland, Estonia, Latvia, and Lithuania broke free, but nationalists in Ukraine, the Caucasus, and Central Asia were eventually subdued.
The Allies intervened in the civil war. They hoped that the Whites might overthrow the Communists and support the fight against Germany. Britain, France, and the United States sent forces to help the Whites. Japan seized land in East Asia that tsarist Russia had once claimed. The Allied presence, however, did little to help the Whites. The Reds appealed to nationalism and urged Russians to drive out the foreigners. In the long run, the Allied invasion fed Communist distrust of the West.
Brutality was common in the civil war. Counterrevolutionary forces slaughtered captured Communists and tried to assassinate Lenin. The Communists shot the former tsar and tsarina and their five children in July 1918 to keep them from becoming a rallying symbol for counterrevolutionary forces.
Who opposed the new Bolshevik regime?
Triumph of the Communists
The Communists used terror not only against the Whites, but also to control their own people. They organized the Cheka, a secret police force much like the tsar’s. The Cheka executed ordinary citizens, even if they were only suspected of taking action against the revolution. The Communists also set up a network of forced-labor camps in 1919—which grew under Stalin into the dreaded Gulag.
The Communists adopted a policy known as “war communism.” They took over banks, mines, factories, and railroads. Peasants in the countryside were forced to deliver almost all of their crops to feed the army and hungry people in the cities. Peasant laborers were drafted into the military or forced to work in factories.
Meanwhile, Trotsky turned the Red Army into an effective fighting force. He used former tsarist officers under the close watch of commissars, Communist party officials assigned to the army to teach party principles and ensure party loyalty. Trotsky’s passionate speeches roused soldiers to fight. So did the order to shoot every tenth man if a unit performed poorly.
The Reds’ position in the center of Russia gave them a strategic advantage. The White armies were forced to attack separately from all sides. They were never able to cooperate effectively with one another. By 1921, the Communists had managed to defeat their scattered foes.
Why did the Red Army prevail over the White Army?
War and Revolution in Russia 1914 - 1921 by Dr Jonathan Smele
Section 4 End of the War
Cassell Military Classics: Iron Fist: Classic Armoured Warfare by Bryan Perrett
One helpful animation is:
Animated Map: The Western Front, 1914 - 1918
Animated battle of the Somme
Among other animations, you can view: Life in the Trenches
You can try your luck during several front line missions with
By the time the Yanks get involved there is a popular song which memorialized American involvement:
American involvement in WW I, 4:11
The Great War #1, World War 1 Era Period Music and Pictures. WW 1 spanned from August of 1914 to November of 1918 and raged across the globe. The United States was officially involved in the war from April 1917 to the end.
The dough boys are nearly forgotten today in the shadow of World War 2, Vietnam and Iraq. Millions of American men and women, black and white, served our country in The Great War. This series of shorts shows the music of their time and photographs from the Great War.
BBC Schools Links
GCSE Bitesize Revision - History
A secondary revision resource for GCSE exams covering the First World War.
The Bitesize series features audio clips from history and commentators:
Standard Grade Bitesize Revision - History
A secondary revision resource for Standard Grade covering the First World War.
BBC History - World War One
This World War One site from BBC History features interactive movies, animations, feature articles and 3-d models.
One helpful animation is:
Animated Map: The Western Front, 1914 - 1918
History Trail – How to do History
Follow in the footsteps of professional historians and find out how they do history. Discover how postcards, council records, tapestries and people's memories of the past are all valuable sources for the historian.
Learning Curve – The Great War
This is a comprehensive offering from the Public Records Office, which tells the story of the First World War through six different source based investigations. It aims to show how the War developed and includes teachers' notes.
Spartacus Educational – The First World War
Spartacus' World War One website offers a growing encyclopaedia of entries about the war, as well as links to other websites.
First World War.com - The war to end all wars
This site gives a general overview of the First World War. It offers a collection of insightful feature articles, photos and footage, memoirs and diaries.
Spark Notes – World War 1 (1914-1918)
Gives a summary and commentary on each main study area of the First World War.
Art of the First World War
Presents 100 paintings from international collections from around the world to commemorate the First World War.
The World War One Document Archive
The World War One Document Archive presents primary documents concerning the Great War.
World War 1 - Web Links
This site lists links to in-depth articles on all aspects of the First World War, including a large collection of links to primary source material.
National Curriculum Online: History
Information about the National Curriculum for History, QCDA and DfEE schemes of work, pupils' work and information about standards and support materials.
The Qualifications and Curriculum Development Authority (QCDA) History section.
Examine key issues with the help of original documents.
The best overall war reference for the entire modern period:
War Made New: Weapons, Warriors, and the Making of the Modern World by Max Boot
All Quiet on the Western Front by Erich Maria Remarque
Cassell Military Classics: Iron Fist: Classic Armoured Warfare by Bryan Perrett
Day of the Assassins: A Jack Christie Novel by Johnny O'Brien
War in the Air 1914-45 (Smithsonian History of Warfare) by Williamson Murray
The Encyclopedia of Warfare: The Changing Nature of Warfare From Prehistory to Modern-day Armed Conflicts by Robin Cross, pp. 170-193.
The Encyclopedia of Weaponry: The Development of Weaponry from Prehistory to 21st Century Warfare, Ian V. Hogg, pp. 112-139.
Battles and Campaigns (Mapping History) by Malcolm Swanston
A documentary about the battle of the Somme 1916 part 1, 9:58
War and Revolution in Russia 1914 - 1921
By Dr Jonathan Smele
World War One News Report, High School History Project
This video is a tribute to Young Pioneer organization of the Soviet Union (1922 - 1991).
The Young Pioneer Organization of the Soviet Union (Всесою́зная пионе́рская организа́ция и́мени) was a mass youth organization of the USSR for children of age 10-15 in the Soviet Union between 1922 and 1991.
The music is a old soviet pioneer song from 1966.
English song name: "May There Always Be Sunshine"
Russian song name: "Пусть всегда будет солнце"
Official song name: "Солнечный круг"
May There Always Be Sunshine (Russian: Пусть всегда будет солнце! Actual Russian Title: Солнечный круг) is a Soviet Russian song, written for children. It was created in 1962, music was composed by Arkady Ostrovsky and the lyrics were written by Lev Oshanin. The Russian writer Korney Chukovsky later wrote in his book that the base for the song was the four lines which became the refrain, composed by a boy of age four in 1928.
Performed for the first time in 1962 at the Sopot International Song Festival by Russian singer Tamara Miansarova it earned the first prize for her there and immediately became widespread in the USSR and some other countries. It was sung by Young Pioneers in Young Pioneer camps, Young Pioneer meetings and at schools; it was sung by Little Octobrists at schools; it was sung even by pre-school children. This song was widely considered as a symbol of peace in the Soviet Union.
It is one of few Soviet songs which did not lose much of their popularity after the USSR and the Young Pioneer organization of the Soviet Union ceased to exist, and are still popular in Russia.
The song was translated into German by Ilse and Hans Naumilkat and Manfred Streubel (as Immer lebe die Sonne) and was popular among Ernst Thälmann Pioneers.
Небо вокруг —
Это рисунок мальчишки.
Нарисовал он на листке
И подписал в уголке:
— Пусть всегда будет солнце,
Пусть всегда будет небо,
Пусть всегда будет мама,
Пусть всегда буду я!
Nebo vokrug —
Ehto risunok mal'chishki
Narisoval on na listke
I podpisal v ugolke:
— Pust' vsegda budet solntse,
Pust' vsegda budet nebo,
Pust' vsegda budet mama,
Pust' vsegda budu ya!
Circle of sun,
Sky all around;
This is the young boy's drawing.
He drew on the paper,
And signed in the corner:
May there always be sun
May there always be sky,
May there always be mother,
May there always be me!
Back In The USSR: The Beatles, 2:43
A Rock version of the Russian National Anthem, 3:15
How To Take Effective Notes
Email to firstname.lastname@example.org
1. Friday: p. 518
Who opposed the new Bolshevik Regime?
Who was the Communist commissar of war during this period?
The Ch. 18 Short Answer Test is today; put your name on the Test and a blank sheet of paper. Use a blank sheet of paper (s) to answer the questions. If you finish early you may take out non-Economics material.
We will pick up where we left off in Chapter 22, Monetary Policy.
Having introduced the Federal Reserve System and its tools for monetary policy in Chapter 21, this chapter begins by considering how money affects the economy (both the long-run quantity theory and the short-run analysis of interest rate channels are covered). The next section discusses the lags in monetary policy (you may wish to relate this section to the corresponding section in the chapter on fiscal policy). The chapter continues with a section on implementing monetary policy that raises the questions of rules versus discretion and which (if any) targets should be used by the Federal Reserve. A final consideration of transparency and the Fed concludes the chapter.
Checkpoint: Monetary Theories
Monetary Policy Lags
Response, Implementation, Recognition Lags, 4:23
Checkpoint: Monetary Policy Lags
Implementing Monetary Policy
Monetary Policy Targets
Long Run: Price Stability
Short Run: Price Level and Income
Rules or Discretion?
Simple Rules (Targets) to Guide Monetary Policy
Target rates vs. money supply, 11:39
The rationale for targeting interest rates instead of directly having a money supply target.
The Bank is injecting money directly into the economy to meet the inflation target, 3:46
The Fed's Performance
Bernanke Maintains that the Fed Should Not Be Audited, 2:07
Checkpoint: Implementing Monetary Policy
Transparency and the Federal Reserve
Ben Bernanke Refuses Transparency, 2:36
Ideas for Capturing Your Classroom Audience
Why do people anticipate what action the FOMC will take? Illustrate how
changes in interest rates cause changes in bond prices using a value calculator such as the one available on the Smart Money site on the Web at http://www. smartmoney.com/onebond/index.cfm?story=bondcalculator. This allows you to change the bond parameters and instantly see the effects on price. Point out that the Fed�fs actions ultimately affect market interest rates which in turn affect the value of bonds.
Compare the Fed to other central banks. The Bank of England publishes an
express inflation rate target on its Web site at http://www.bankofengland.co.uk/.
The Bank of New Zealand specifies a range of 1.3% (see its page at http://www.
rbnz.govt.nz/monpol/pta/3027620.html). The Central Bank of Iceland specifies
2.5% rise in its CPI over 12 months (http://www.rbnz.govt.nz/monpol/pta/
3027620.html). For links to other central bank pages see the page of the Bank
for International Settlements at http://www.bis.org/cbanks.htm.
Question: Of the three motives for holding money, which one is most important for
The point is to check that students can: apply their understanding of the three
motives for holding money to the mechanism by which monetary policy affects the
Monetary Policy Lags
Question: Why are monetary policy lags important to the effectiveness of monetary
The point is to check that students can: integrate the material on lags in monetary policy with their prior knowledge of the business cycle and the goal of monetary policy.
Implementing Monetary Policy
Question: Explain why a negative supply shock such as rising oil prices is a difficult problem for monetary authorities to compensate for.
The point is to check that students can: relate their understanding of what monetary policy makers can do (what effect their actions can have on the economy) to
their prior knowledge of the effect of supply shocks.
Extended Example in the Chapter
Transparency and the Federal Reserve
When Alan Greenspan became its chairman in 1987 the transparency of the Fed
began to increase. By 1994 the Fed was releasing a policy statement each time it
changed interest rates, and by 1998 it also started to state its forecast of what would probably happen in the next month or so. By 2000, the FOMC released a statement after each of its eight meetings even if policy remained the same.
Transparency is controversial within the Fed, particularly with regard to “forwardlooking transparency.” Some believe that statements about the Fed’s views of
where the economy is headed can tie its hand by revealing likely future courses of
action. (NOTE: The key to understanding that view is believing that if the market
expects the Fed to change rates (in either direction) it will change bond purchasing
behavior and so will affect interest rates even before the Fed actually does anything,
in effect making the Fed’s action, when it comes, have no further effect on
This section references an article by Greg Ip, “The Fed’s Big Question: Not What to
Do, But What to Say” (The Wall Street Journal, October 27, 2003, page A1). The
debate about transparency that occurs within the Fed cites two articles by William
Poole (President of the Federal Reserve Bank of St. Louis); they are “Fed
Transparency: How, Not Whether,” from the Federal Reserve Bank of St. Louis
Review, November/December 2003 and “FOMC Transparency,” also from the
Federal Reserve Bank of St. Louis Review, January/February 2005. Past issues of
the review are available on the Bank’s Web site at http://research.stlouisfed.org/
Also cited is a response by Ben Bernanke, Thomas Laubach, Frederic Mishkin, and
Adam S. Posen to a review of their book Missing the Mark: The Truth About
Inflation Targeting. Writing in Foreign Affairs (September/October 1999), the
authors restate their theses in response to the review that had been written by
James K. Galbraith. The response can be read on the Web at: http://www.
Examples Used in the End-of-Chapter Questions
Question 1 cites an article by Brian Wesbury titled “Economic Rehab” from The Wall
Street Journal, June 7, 2006, p. A14. In the article Wesbury suggests that Bernanke
is being unfairly criticized for a series of missteps. To put this in the context of
transparency, look at the list of Bernanke statements compiled by Liz Rappaport of
TheStreet.com. Full text of article is available at http://www.thestreet.com/markets/
marketfeatures/10289904.html but a concise table with “translations” can be found
Question 3 references the European Central Bank. For a statement on the Bank’s
policy with regard to inflation and other information about its functions and objectives, see its Web site at http://www.ecb.int/mopo/html/index.en.html.
Question 9 could be extended to a discussion of whether or not there is such a thing as a “liquidity trap.” If you choose to address that topic, recent experiences in Japan provide interesting illustrations.
Question 12 discusses transparency and inflation targets. For more discussion of
this topic with regard to Federal Reserve Chairman Ben Bernanke (and Governor
Frederic Mishkin) see the article from The Economist titled “The Federal Reserve’s
Chairman Hitting his Stride” (February 1, 2007, available on the Web at http://www.economist.com/finance/displaystory.cfm?story_id=8641615).
For Further Analysis
Using the AS/AD Model to Explore the Impacts of Expansionary Monetary
This example can be used as an in-class small group exercise or as an individual inclass exercise. It is designed to complement the text’s material by employing the graphical analysis of the AS/AD model to illustrate the effects of expansionary monetary policy when the economy is below full employment and when it is above full employment. It would not be difficult to adapt the handout to have students consider contractionary policy as well.
The third question in the handout can be deleted if desired; it asks students to
explain the circumstances under which cuts in the target federal funds rate might
NOT occur. This can be useful if you want to discuss the time period during which
the Fed kept the target rate unchanged.
Note that #13 of the end-of-chapter Questions and Problems uses only short-run
analysis and asks students to compare monetary policy actions in the context of
demand shocks versus supply shocks. The purpose of this exercise is to show how
monetary policy can make things worse if the current position of the economy versus long-run aggregate supply is unclear.
This example can be used as a small group exercise or as an individual exercise.
The exercise provides an opportunity for students to apply the material in the chapter about the FOMC and how it communicates with the public by having students
read the latest press release. It is advisable to review how the process works before giving this assignment (for example, what is the target federal funds rate?). You may also wish to assign more than one press release to have students “track” the FOMC’s views over time.
Links to all the FOMC statements can be found at: http://www.federalreserve.
Reading the Tea Leaves: The Latest from the FOMC
Read the latest press release from the FOMC. Visit its Web site at: http://www.
federalreserve.gov/FOMC/#calendars and click on the “Statement” link for the most
recent date on the calendar.
After reading the statement, answer the following:
1) What did the FOMC decide to do?
2) What is the “tilt” statement embedded in the statement?
3) Was the vote on the statement unanimous? What do you conclude from the
Tips from a Colleague
This material can be of great interest to students when they realize how critical the Fed’s conduct of monetary policy is to the action in financial markets. You may wish to create a compilation of articles in the business/financial press in advance of an FOMC meeting and then those following it to emphasize how expectations were formed about the Fed’s actions and whether those expectation were met or not.
Using the AS/AD Model to Explore the Impacts of Expansionary Monetary Policy
The job of the FOMC is to assess the current (and future) path of the economy and decide whether or not monetary policy action is indicated at any point in time. One of the many challenges they face is trying to evaluate where the economy is relative to its full employment level.
Milton Friedman - Socialized Medicine, 9:37
Nobel Laureate Economist Milton Friedman explores the unsettling dynamics set into motion when government imposes itself into the health care system. (1978)
Hayek on Milton Friedman and Monetary Policy, 4:56
Friedrich Hayek discusses Milton Friedman's Monetarism and monetary policy.
For more on Hayek's ideas on monetary policy see
Choice in Currency: A way to stop inflation
(for a concise summary) at
or see The Denationalisation
of Money for a more a more detailed proposal at
This is an excerpt from a longer interview which can be found here http://www.vimeo.com/4063439
Milton Friedman on Slavery and Colonization, 8:43
Modern monetary theory - Mitchell and Wray
This is a series of Modern monetary theory interviews - Professors Bill Mitchell and Randy Wray. See billy blog (http://bilbo.economicoutlook.net/blog) for more information on this approach to macroeconomics. You can also get more information from Centre of Full Employment and Equity (http://e1.newcastle.edu.au/coffee).
A fundamental or central part of the research of both of you is centred on the nature of money. Could you perhaps talk a little bit about the nature of money and particularly explain to non-economists what fiat money is and what the implications it has on policy formation?
1. Be sure to review Chapters 19-21 (we will have Quizzes and Tests on this material as well, TBA). Some students have asked to be tested as close as possible after covering the material.
2. In Ch. 22 email the answers to Questions #1-9. If you need to put this on hard copy to answer, please feel free to do so.
3. As review for HW, typical questions that you may encounter on the actual AP Economics Macro Test are included daily:
Financial Sector, Review Questions
a) one of the banks' liabilities
b) one of the bank's assets
c) part of the bank's net worth
d) par of the bank's capital
e) on loan from the bank
The Fed's required reserve ration for the banking system is 10%. Currently, the Anytown National Bank--a member bank--has no excess bank reserves. Then Mr. Jones deposits $1,000 in his checking account at Anytown National Bank.
If the bank deducts its RRR amount from the deposit, identify the amount of bank reserve it has available to loan.
A) Calculate the money multiplier and show your work.
B) What is the greatest amount by which the banking system can increase the money supply?
C) Identify the limits the bank system has with its ability to increase the money supply.
Inflation, Unemployment, and Stabilization Policies, Review Questions
1. If the economy is operating at potential GDP, an increase in the money supply will lead to
B) sustained inflation
C) demand-pull inflation
D) cost-push inflation