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Fiscal policy refers to using increased government spending or lower tax rates to help fight recessions. For example, if the government buys more goods and services, economic activity increases. In a similar fashion, if the government cuts tax rates, consumers end up with higher after-tax incomes, which, when spent, increase economic activity. In the first decades after Keynes s anti-recessionary ideas were put into practice, they seemed to work really well. However, they didn t fare so well during the 1970s, and it became apparent that although monetary and fiscal policy were powerful anti-recessionary tools, they had their limitations. For this reason, 7 also covers how and why monetary and fiscal policy are constrained in their effectiveness. The key concept is called rational expectations. This concept explains how rational people very often change their behaviour in response to policy changes in ways that limit the effectiveness of those changes. You need to understand this concept if you re going to come up with informed opinions about current macroeconomic policy debates.

NO REST FOR THE DEAD The preceding case illustrates that identity thieves will exploit any opportunity to commit fraud It is not just celebrities who are identity theft targets Sadly, the dead are also victimized by the lowest-of-the-low fraudsters People can spend their entire lives working hard, growing a good reputation, and leaving a sound legacy when they depart this world Unfortunately, due to the good life they left behind, their identities are subject to theft and abuse by identity thieves We see this in case after case where the deceased have their names, SSNs, and other PII stolen from the grave Identity theft has given rise to many new terms used to describe the variations of the crime and the ploys used to collect personal information Tombstoning is but one of these new terms.

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Psychology, Crime and Law, 5, 3 27 Loftus, EF and Palmer, JC (1974) Reconstruction of automobile destruction: An example of the interaction between language and memory Journal of Verbal Learning and Verbal Behaviour, 13, 585 589 Loftus, EF (1979) Eyewitness testimony Cambridge, MA: Cambridge University Press McEwan (1998) Evidence and the adversarial process: The modern law Oxford: Hart McBarnett, D (1981) Magistrates courts and the ideology of justice British Journal of Law and Society, 8, 181..

Tombstoning is the collection of names, dates of birth, and other information by walking through cemeteries and recording the information for later fraudulent use One brazen and heartless fraudster used this approach to violate the dead and enrich himself Larry Steve Albert was always able to blend in and never stand out As the federal agent who eventually tracked him down and arrested him said, He was remarkably unremarkable There were no clues, public records, work history, vehicle purchases, to his whereabouts since 1986 He just disappeared 7 He was just so average that no one would ever think he could be a scammer This allowed him to commit identity theft for many years and not get caught Along the way, he stole the identities of more than 200 deceased persons from at least eight states.

slot, into which the Mondex card was plugged, and similar modi cations were provided on a number of payphones. The Mondex card is not just a memory device with encryption; it actually includes a single chip microprocessor and an operating system, MULTOS, which allows it to be loaded with a number of applications, perhaps from different vendors or service providers. MONDEX is also unusual in that the tokens are genuinely cash, in the sense that they are deducted directly from the owner s bank account as a cash withdrawal. Thereafter they are anonymous coins which can move from buyer to seller without audit trail and, if the card is lost, are lost with it.

Albert had a simple but time-tested method: He focused on deceased people, many of them children, for the identity thefts Albert would target small towns and small banks He would claim to be a newly arrived resident of the town and was opening a bank account He presented fake drivers licenses, Social Security cards, rental agreements, and other documents as identification proof Deposits of $100 were the norm, and once he received his checks, he would paper the town with bad checks Wal-Mart, Staples, JCPenney, Target, Lowe s, and other stores were among his favorites for fraud Albert also violated the trust of his family He altered the SSNs of five of his sons and used them for phony identification8 Albert would repeat this identity theft again and again in numerous states over the years New Mexico, Washington, Nevada, Oregon, Colorado, Utah, North Carolina, and.

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