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The U.S. Economy: Financial Crisis & The Global Economy

During times of financial crisis and economic downturn, recommend the best course of action the Federal Reserve can take to minimize the negative impact to the U.S. economy. Provide support for your recommendation.

-Given the globalization of the economy, identify modifications to your recommended course of action for the U.S. economy that can to be applied to a global economy. Provide support for your rationale.

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Federal Reserve is central bank of USA and it devices and regulates the monetary policy. When a country is facing recession then it means that country's economy has slowed down. There is reduction in growth in GDP and increase in unemployment. Let us discuss about the usage of Federal reserve's monetary policy to handle recession. As per tutor2u, "Monetary Policy involves changes in the base rate of interest to influence the rate of growth of aggregate demand, the money supply and ultimately price inflation." Thus, monetary policy is a policy which determines supply ...

Solution Summary

Solution helps in identifying modifications to your recommended course of action for the U.S. economy that can to be applied to a global economy

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