The Federal Reserve Board testimonies, press releases, monetary policy reports, the Beige Book, and a variety of other publications offer a detailed assessment of current economic activity, financial markets, and the monetary policy tools used to promote economic activity and preserve price stability.
Write an eight to ten (8-10) page paper in which you:
- Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy.
- Determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.
- Describe which monetary policies the Federal Reserve might use to influence the money supply.
- Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity and preserving price stability.
- Analyze the effect of the Federal Reserve’s action you identified in #3 on the aggregate demand / supply model.
The specific course learning outcomes associated with this assignment are:
- Analyze the basic operation of banks, the structure of the banking industry, and the major regulatory processes controlling banks.
- Evaluate monetary policy and its impact on economic growth and business cycle.
- Analyze the various theoretical approaches and models and assess their use in shaping monetary policy.
- Use technology and information resources to research issues in money and banking.
- Write clearly and concisely about money and banking using proper writing mechanics.