2008 Financial Crisis. Mathematics & Economics Essay. (Essay Sample)
Federal Reserve’s Monetary Policy did during the 2008 crisis and what it should have done.source..
2008 Financial Crisis
The Federal Reserve’s Monetary Policy during the 2008 financial crisis should have been stimulated by doing more quantitative easing since inflation was low and unemployment high, quantitative easing would boost demand such that inflation is high or unemployment is low. Another policy would be to introduce a Nominal GDP targeting in place of the current inflation targeting regime. This would have encouraged people to get their money out of cash to invest in real investments and government debt.
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