How should the Federal Reserve respond to the problem shown below?
How should the Federal Reserve respond to the problem shown below?
If the Federal Reserve wants to contract the money supply, should they buy bonds or sell bonds?
During the recession of 2008, many banks were not lending the excess reserves they had, and many felt this slowed the economic recovery. Does this best fit the Classical or Keynesian point of view?
In fiscal policy there are the challenges of the recognition, implementation, and impact lags. How do these correspond to lags in monetary policy?