In response to the Great Recession, the Federal Reserve took drastic and largely untested measures to stabilize
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In response to the Great Recession, the Federal Reserve took drastic and largely untested measures to stabilize both the financial system and macro economy. These measures caused the monetary base to increase from approximately $850 billion to over $4 trillion. What would an economist from each of the following viewpoints—classical, Keynesian, monetarist, real business cycle, Great Moderation consensus, post–Great Recession inflation bears, and secular stagnationists—predict about the effect of these policies, and why? Indicate whether each school would support the Fed’s actions.
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Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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