The Great Recession and the Fed Discussion

Question

Instructions

Read “YOU’RE THE ECONOMIST: Did the Fed Cause the Great Recession?” in Chapter 26. In support of the Fed’s monetary policy prior to the deflation of the home prices bubble, one can argue that the reality is that increasing the money supply and low-interest rates were required to sustain expansion. Based on the Monetarist’s school of thought, criticize the Fed’s policy.

Requirements: 250 words minimum

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