Assume the recovery process of the current state of the economy is expected to start after ending the Covid-19 crisis presumably before the next Fall 2021. Under the conditions in short term financial market crisis and the economic recession in coming summer and fall of 2021, the Fed has expanded a massive easy lending program on April 9, 2020 under the statement below: The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

Question 5B: What relatively untested policy tools will help the Fed deal with the potential problem of printing so much money as soon as the pandemic crisis over? Explain.