1.Consider the Federal Reserve’s recent action of Quantitative Easing (QE).
a. What is QE?
b. How does the Fed stimulate the economy in “normal times”?
c. Discuss why they felt the need to conduct QE in the past recession, i.e. why was the
Fed policy that is used in “normal times” not sufficient in this case?
d. A number of economists and policy makers criticized QE. Discuss what their main
concern is.

2.Explain why there is a chance that the social security trust fund may be depleted in the next few decades. Does this mean that social security will be bankrupt and will not be able to make any payments to retirees after the next few decades?

Answer rating: 100% (QA)

Quantitative Easing and Social Security Concerns 1 Quantitative Easing QE a What is QE QE is an unconventional monetary policy tool used by central ba... View the full answer