Monetary Policy

Monetary Policy Order Description You will conduct research in" rel="nofollow">into how monetary policy was used durin" rel="nofollow">ing the followin" rel="nofollow">ing three times periods in" rel="nofollow">in the history of the United States: The Great Depression years of 1929-1933 The 1970's Stagflation from 1973-1982 The recent recession that occured in" rel="nofollow">in the years 2008-2010 In your first page after a brief in" rel="nofollow">introduction, you should dein" rel="nofollow">ine several key concepts that will be the subject of your research in" rel="nofollow">in this page: -Fractional Reserve Bankin" rel="nofollow">ing System -The Money Multiplier -Transmission Mechanism -Money Supply; M1;M2 The body of your paper should focus on each of the three events one at a time and identify the monetary policy that was implemented durin" rel="nofollow">ing each of the events. Keep in" rel="nofollow">inmin" rel="nofollow">ind that when coverin" rel="nofollow">ing a period of years you may not observe use of the three monetary policy tools each year, however lookin" rel="nofollow">ing across the period of years you will see clear changes in" rel="nofollow">in the money supply that will demonstrate expansionary or contractionary direction taken by the Federal Reserve durin" rel="nofollow">ing each event. You should use your research to go beyond a simple statement of "the money supply in" rel="nofollow">increased" or there was less money in" rel="nofollow">in the economy" and discuss how the money supply changed. What policy tools tools were used? How did the money supply change? Did the economy expand or contract as a result? -Then at the end provide a brief summary of how monetary policy was used durin" rel="nofollow">ing each event and discuss the impact our macroeconomic variables (GDP; Unemployment; Chnages in" rel="nofollow">in ther price level, either in" rel="nofollow">inflation or deflation) from the begin" rel="nofollow">innin" rel="nofollow">ing to the end of each time period.