StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - The Role America's Federal Reserve Played in Contributing to the Actions Leading to the 2008 Financial Crises

Only on StudentShare
Pages 10 (2510 words)
The role America's Federal Reserve Played in Contributing to the Actions Leading to the 2008 Financial Crises Introduction The Federal Reserve of the United States was established in 1913 as a means of stabilizing currency issues within the country. Since its emergence the Fed has prominently functioned in response to the major crises of the 20th and 21st centuries…

Extract of sample

While the Federal Reserve is a cornerstone institution of the United States, critics have argued that in the long-term the Fed is actually bad for the economy. This research evaluates the extent that the Federal Reserve contributed to the actions leading to the 2008 financial crises. Analysis One of the most prominent critics of the Federal Reserve has been former Republican Presidential candidate Ron Paul. Paul’s perspective follows a line of logic that is directly related to the way the Fed functions. Paul indicates that when the American economy is lagging the Federal Reserve infuses new currency into the system. This new currency results in lowered interest rates. The lowered interest rates correspondingly result in capitalist expansion, as business and individuals increasingly engage in borrowing practices. The problem, as Paul indicates, is that such practices are artificial and don’t reflect the economies’ true and proper functioning. Paul has seminally noted, “When central banks like the Fed manage money they are engaging in price fixing, which leads not to prosperity but to disaster” (Paul 2011). ...
Download paper
Not exactly what you need?

Related papers

Applying the EMH Evaluate the Role That Government Played In Economic Recovery Using Recent Real-life Examples
This report stresses that market efficiency has been tested over a long period of time and it has been observed that movement of the stock prices follow a random walk. The random walk theory states that an investor can have a good chance of beating the market if they throw darts on New York Times stock listing pages. Investors who adhere to the random walk theory believe that searching for…
11 pages (2761 words)
Federal Express Canada Case Analysis
Hence, the company must immediately respond to these issues in order to ensure long terms sustainability. Logistics computerization is one of the most recommendable policies for the FedEx to improve its logistics and customer service operations. The company has to raise additional finance. It also has to recruit more skilled employees to implement the planned changes. Finally, the FedEx should…
5 pages (1255 words)
Federal Express Canada Case Analysis
Contents Contents 3 Background 4 Statement of Problem(s) or Statement of Issue(s) 4 Situation Analysis 5 Marketing Mix 5 SWOT Analysis 6 Environmental Analysis 7 Analysis of alternatives 7 Recommendation(s) 7 Implementation or Action Plan 8 Reference 8 Background The case study revolves around FedEx’s customer service that it provides to its customer and need of assistance provided by the…
5 pages (1255 words)
Federal Express (Canada)
Table of Contents Executive Summary 2 Background 4 Statement of Problem(S) or Issue(S) 5 Situation Analysis 6 Analysis of Alternatives 8 Recommendations 9 Implementation or Action Plan 9 Reference 10 Appendices 11 Background Desktop Innovations (DI) is recognized as one of the renowned organizations operating in software sector, which enhanced at a rapid pace in this era of globalization and…
5 pages (1255 words)
Shell company's efforts, actions and initiatives regarding sustainability
They have divided their whole work strategy into two directions, Up-stream and down-stream. In the Upstream strategy they are actually looking forward to discover newer oilfields and at the same time also working on the existing methods to increase efficiency and productivity. In the downstream strategy they invest the earnings to earn financial gains. They focus on providing the supply to the…
8 pages (2008 words)
The Federal Reserve
The effectiveness of the role of the Federal Reserve System lies in the monetary policies of the bank. The responsibility of designing appropriate monetary policies is bestowed on the Federal Reserve System by the Federal Reserve Act in order to ensure availability of money and liquidity in the economy and to arrange for provision of affordable cost of credit in order to fulfil the national…
8 pages (2008 words)
financial marketing
In relation to the situation of credit crunch, it is usually observed that lenders are unable to provide adequate credits to borrowers, resulting in lessening their purchasing power. The term ‘credit crunch’ is recognised as a sudden restriction in the availability of various elements linked with credits or loans that include credit cards, inter-bank lending along with mortgages due to lack of…
12 pages (3012 words)