Question
a) Describe the problem, from an aggregate demand perspective, that the Federal Reserve confronted in the wake of the 2008 financial crisis. b) What was
a) Describe the problem, from an aggregate demand perspective, that the Federal Reserve confronted in the wake of the 2008 financial crisis. b) What was extraordinary or unusual about this economic downturn (historically, structurally) from the Fed's perspective? c) What are the traditional "tools of monetary policy"? d) Why did the Fed need to expand the scope and range of its policy tools? How did they accomplish this? e) How effective has monetary policy been in addressing this downturn? Do you agree with Geithner's assessment? Why or why not? f) What do you think? (frame your response in terms of the model of aggregate supply and aggregate demand).
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