Please read the two articles, watch the vides, and post your comments in your group. The grading of discussion is based on how the posts by all your group members have addressed the discussion questions collectively. Each group member is required to participate in the discussion and make posts. Group members will get the same grade.
1. Read the article of America’s Money Supply Has Ballooned. What Should We Expect Next? from Manhattan Institute by on July 7th, 2020 at and watch the video by the Fed Chairman, Jerome Powell:
Compare the Feds recent aggressive monetary easing and the Feds quantitative easing following the financial crisis of 2008 and answer the following questions.
a. What is the difference between these two rounds of monetary policies in terms of their impact on money supply in the economy?
b. How did the inflation rates move after the Feds quantitative easing following the financial crisis of 2008? And how do you think about the impact of Feds recent aggressive monetary easing on inflation rates?
2. Read the article Covid Supercharges Federal Reserve as Backup Lender to the World When the coronavirus halted the global economy from Wall Street Journal by Serena Ng and Nick Timiraos on Aug. 3rd, 2020.
a. What is the implication of U.S. dollar liquidity swap lines?
b. Why is it crucial for the Fed to take the role of lender of last resort for other central banks in the world and intervene in international financial markets?
c. How do you weigh the pros and cons about the Feds intervention in international financial markets?
