Economics Assignment | Professional Writing Services
| Monetary Policy Prediction – liquidity trap: What does Keynesian monetary policy predict will happen when the government (through the central bank) wants to fight against recession but interest rates are already very close to zero.
Monetary Policy Prediction – politics get in the way: Suppose a national leader is up for reelection when the economy is doing well (low unemployment and reasonable inflation) and she wants to “boost” the economy through the use the central bank’s control over the money supply. Could this work and what are the consequences? |
Principles of Economics in Context by Goodwin, Harris, Nelson, Roach and Torras published by M.E Sharpe ISBN: 978-0-7656-3882-3 (Referred to as “Principles” in the reading schedule.)
Principles, Chapter 26 “Money, Banking, and Finance”
Give this chapter a good amount of time.
You will not be required to perform calculations, but you should be familiar with the mechanics of money creation.
Principles, Chapter 27 “The Federal Reserve and Monetary Policy”
Give this chapter plenty of time.
Federal Reserve Bank “About” (https://www.federalreserveeducation.org/about-the-fed/structure-and-functions/monetary-policy/)
This is a resource reading.
European Central Bank’s “Explainers: (You should “poke around” the other Explainers.) What is money? (https://www.ecb.europa.eu/explainers/tell-me-more/html/what_is_money.en.html) &What is a central bank? (https://www.ecb.europa.eu/explainers/tell-me/html/what-is-a-central-bank.en.html)
This is a resource reading.
