The Federal Reserve was effective/successful in its management of the"Great Recession"

The Federal Reserve was effective/successful in its management of the"Great Recession" Essay example
Undergraduate
Essay
Finance & Accounting
Pages 10 (2510 words)
Download 0
Name: Institution: Tutor: Course: Date: The Federal Reserve was successful in its management of the “Great Recession" Introduction In times of economic strains such as depressions, countries usually undergo a lot of stress in the management of their fiscal and monetary accounts…

Introduction

However, a near reoccurrence of the same situation took place in the year 2008 when worldwide; all nations had difficult economic situations (Berton 254). At about the Great Depression period, the rate of the Real Gross Domestic Product began to decline at a rate of about 6% annually, and the monthly average number of jobs lost rose to about 750,000. This stunning turn of events led to the stunning application of stringent fiscal and monetary policies by the Federal Reserve so as to curtail the spread of the effects. In responding to the unusually large size of the fiscal stimulus, the Federal Reserve noted that this was in consistency to the severe downturn and limited ability for the usage of interest rates nearing zero. At such hard economic times, the government of the USA through the Federal Reserve is expected to employ necessary economic variables and measures such as fiscal and monetary policies to try and resolve the situation. To this end, I can argue that the Federal Reserve was successful or effective in the manner in which it managed the Great Depression. The table below shows the annual GDP rates of the USA for the period 1910 to 1960 with the depression period lying between 1929 to 1939 (Robbins 569). ...
Download paper
Not exactly what you need?

Related papers

The Role of Direct and Indirect Taxes in the Federal Reserve
i. Present in the UK for a minimum of 183 days ii. Not habitually in the UK but makes substantial visits averaging a minimum of 91 days a year in each of four or more consecutive years. For anyone who may be emigrating from the UK, the number of years is three instead of four. However, if there are extenuating circumstances such as illnesses the days are ignored for the 91 day rule but not for the…
The Monetary Behavior as Created by the Federal Reserve
The Federal Reserve has the power, and has always had the power since its creation, to control the amount of funds in its regional banks throughout the United States. By the Federal Reserve requiring any Federal Reserve banks to keep reserves on hand to handle unexpected outflows as well as meet the demands for the daily operations, it was believed that stability in the behavior and value of a…
the federal reserve
Close co-ordination between the Federal Reserve and the Government of the USA is essential, because monetary policies should be in sync with fiscal policies for an effective and sustainable economic growth in the long run. Role of Federal Reserve in stabilizing economy The steps taken by the Federal Reserve, for example by increasing the interest rates to reduce inflation will have an impact on…
The Federal Reserve
As compared to the employment, the self employed or an entrepreneur in general, have to invest some amount, which is said capital, and it is the fate of the self employed that it may succeed or fail, whereas in the employment there is no risk for the investment, as there is no investment required, all the employee has just to do is to fulfill the job requirement and to get a an earning at fixed…
The Federal Reserve
This paper seeks to analyze the role of the financial markets in economic wealth creation in the United States as well as three financial securities which include; stock shares, bonds, and treasury bills. Analyze the role financial markets play in creating economic wealth in the U.S. Financial markets have a significant role as far as the United States economy is concerned. Most importantly they…
Federal Reserve
The Board of Governors is appointed by the President who controls the functions of the Federal Reserve System. There are Federal Reserve Banks which operates in major cities of US. The major objectives of the Federal Reserve System are aimed at the welfare of the US economy. The Federal Reserve System in US is responsible for maximizing the employment opportunities in US, stabilizing the prices in…
The Federal Reserve Bank
It was established in the year 1791 with its charter signed by George Washington. The bank used to perform all the major banking functions. After the expiry of the charter 20 years hence, country was without a central bank for few years resulting into inflation. Again a second bank came into existence in 1816 with a charter signed by James Madison. In 1833 again the charter expired and United…