Discuss federal reserve policy

Reference no: EM133494100

Assignment:

Consider the following Federal Reserve policy and its effects on the following stakeholders. Be sure to frame your answer in the form of an "ethics" question that considers the harm and benefit to each stake holder. Write three to four paragraphs describing how the stakeholder uses money, how the policy would hurt or help them, and what if you think anything should be done to limit the help or harm to that stakeholder.

Policy: The output gap is relatively high (let's say 2%) and the inflation gap is higher (let's say 4%) and prevailing interest rates are 2%. According to an equally weighted Taylor Rule (, what should be the short run interest rate target. Suppose the Federal Reserve lowers rates to 1.5% instead, justifying the decreased rates by pointing out slow recovery since the Covid 19 pandemic.

A community bank which primarily makes profits from mortgages and local business lending and holds large amounts of "stable and secure" US Treasury Bonds.

An online art forger who has been selling duplicate NFT's for the past year to high net worth investors.

Reference no: EM133494100

Questions Cloud

What should be the appropriate mix of fiscal policy : In the current scenario, what should be the appropriate mix of fiscal policy and monetary policy? Cite source for data and be specific in your recommendations.

Discuss the importance of equilibrium : Describe the relationship in the graph between supply & demand prices and state the equilibrium. Discuss the importance of equilibrium.

Describe the company ethics of corporate governance : Describe the company's ethics of corporate governance; Board duties, its performance of key principles from PowerPoint, readings.

Discuss the concept of wage discrimination : An Associated Press article quoted a report saying that male high school teachers were paid more than female high school teachers.

Discuss federal reserve policy : A community bank which primarily makes profits from mortgages and local business lending and holds large amounts of "stable and secure" US Treasury Bonds.

How might different features of different cryptocurrencies : Consider the interesting challenges that cryptocurrency offers to the traditional economic structure.

What industries are promising for successful profitability : By applying industry analysis during the pandemic, what industries are the most promising for the successful profitability? and why?

Identify structural inequalities : How does conflict theory help you to identify structural inequalities?

Which aspect of production process isaffected by technology : Given your knowledge of managerial economics which aspect of the production process isaffected by the technology.

User Account

All Pages