Choose 1 of the following topics related to the Great Recession:
The housing price bubble, collapse, foreclosures, bailout of underwater mortgages
Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac and AIG
The banking industry crisis, bailout of commercial and investment banks
Write a 350- to 700-word analysis of 1 of the following corrective actions taken by the Federal Reserve as a result of the crisis:
Quantitative easing
Purchase of toxic assets from financial institutions
Paying interest on reserve balances
Address the following in your analysis:
Actions taken by the Federal Reserve to mitigate the crisis
How the corrective action helped to restore stability to the financial system
How the corrective action should prevent recurrence of a similar crisis
Note: Use of charts and graphs is encouraged with appropriate citations. Any charts or graphs retrieved from the Federal Reserve Bank of St. Louis FRED website may only be included when the data sources used by FRED are US government sources such as the Bureau of Economic Analysis or the Bureau of Labor Statistics.
Cite at least 3 academically credible sources.
Format your assignment according to APA guidelines.
Resources to use
The Role of Money in The Economy
Federal Reserve System: Monetary Policy
Gross Domestic Product (GDP)
Resources
Library
Web Resources
American Recovery and Reinvestment Act of 2009
Bailout Tracker
Emergency Economic Stabilization Act of 2008 (TARP)
Federal Reserve Economic Data (FRED)
Financial Crisis Inquiry Commission
The Great Recession and its Aftermath
