Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How successful was QE 1 considered to be during the Great Recession in 2008-2009? How about the subsequent QEs after 2009? You are encouraged to

How successful was QE1 considered to be during the Great Recession in 2008-2009? How about the subsequent QEs after 2009? You are encouraged to use additional reliable sources of information besides the film.

Why was Professor Joseph Stiglitz concerned about the "trickle-down economics" effects of the QE? (min 15)

What happened to the federal funds rate? (min 35.41) What did the Fed announce in regard to corporate debt?

What was your understanding of the problem of moral hazard as discussed in the film (min 39.31)?

Why can low interest rates be distorted tools in financial markets? Recall that in one of the interviews in the film, it was mentioned that the financial sector/industry was growing at 8% while the economy only at 3% at best.

How are we, as citizens, affecting the economy with our behavior? Is the use of stimulus checks to buy stocks, as shown in the film, helping the realeconomy (min 45:54)?

A similar view expressed in the film is that with so much money injected in the economy, people feel the need to buy: "Things will only go up. Or else the Fed will step in. If so, why wouldn't you just buy?" (min 47.16). What is your reaction to that view?

https://www.pbs.org/wgbh/frontline/documentary/the-power-of-the-fed/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometrics By Example

Authors: Damodar Gujarati

2nd Edition

1137375019, 9781137375018

More Books

Students also viewed these Economics questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago