Effects of policies implemented in reaction to crisis

Assignment Help Macroeconomics

Reference no: EM13770793

The financial crisis of 2008 caused macroeconomists to rethink monetary and fiscal policies. Economists, financial experts, and government policy makers are victims of what former Fed chairman Alan Greenspan called a "once in a century credit tsunami"-in other words, nobody saw it coming.

Based on the analysis of the data, share your thoughts on what caused the financial crisis and whether the United States is going in the right or wrong direction with its current policies.

Focus specifically on the following:

Monetary policy
- What monetary policies do you think caused the crisis?
- What were the effects of the policies implemented in reaction to the crisis?
- Do you think the solutions worked in the short term? In the long term?
Fiscal policies
- What fiscal policies do you think caused the crisis?
- What were the effects of the fiscal policies implemented in reaction to the crisis?
- Do you think the solutions worked in the short term? In the long term?

Make sure you include the following concepts in your analysis:

Interest rates
The financial services industries (CDOs, CMOs, the stock market, credit flows, money markets, etc.)
Tax rebates
Stimulus
TARP
Government debt and deficit
Inflation
Unemployment
GDP

In your opinion, did government intervention help or harm the economy before and after the panic of 2008? Would you have done anything differently?

Make sure you use research to back up your argument.

Reference no: EM13770793

Questions Cloud

Relationship between price level and net exports of economy : The "net exports effect" is the impact on a country's total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an e..

Ideal manufacturing company of sycamore : Ideal Manufacturing Company of Sycamore, Illinois, has supported a research and development (R&D) department that has for many years been the sole contributor to the company's new farm machinery products.

How could a deficit prime the pump of the economy : Explain the logic that lies behind the statement that encouraging savings could be risky and what is the rationale behind why increasing saving is good in the longer term?

Write an essay on why is it so hard to teach by daniel : Write an essay on Why Is It So Hard to Teach By Daniel T. Willingham.

Effects of policies implemented in reaction to crisis : What monetary policies do you think caused the crisis and what were the effects of the policies implemented in reaction to the crisis - Do you think the solutions worked in the short term? In the long term?

Managing hazardous material and waste course project : The biology department has animal dissection, human dissection, a microbiology lab, and a medical laboratory education program that uses small quantities of a lot of chemicals. The chemistry department has chemicals that have never been inventoried..

Pros and cons of mediation arbitration and litigation : Alternative Dispute Resolution Assignment. Compare the pros and cons of mediation, arbitration, and litigation. Include a discussion of how each has traditionally been used, and which method works best for which circumstance

Review the acm code of ethics and professional conduct''s : Review the ACM Code of Ethics and Professional Conduct's More Specific Professional Responsibilities sections 2.1 and 2.2

Write a seven pages paper on inattentional blindness : Write a seven pages paper on Inattentional blindness.

User Account

All Pages