Federal Reserve Paper
From 2007 to 2010, the Federal Reserve used many practices unfamiliar to the U.S. central bank. Respond to the following components as an economist representing either the classical or Keynesian school:
- Evaluate critically, as a classical or Keynesian economist, what caused the 2007 to 2009 financial crisis.
- Examine the causes that aggravated the financial crisis during the period?
- Evaluate the actions that the Federal Reserve and the government took during this period. Do you support their actions in both monetary policy and fiscal policy? Why or why not?
- Recommend an alternative policy or method that could have better resolved the financial crisis if you were a decision maker (of monetary policy or fiscal policy) during the period.
- Give advice, as a prominent classical or Keynesian economist, to the Federal Reserve and/or federal policy makers to prevent future economic or financial crises.
The Classical and Keynesian Debate paper
- Must be five to six double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center https://writingcenter.ashford.edu/apa-style
- Must include a separate title page with the following:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
- For further assistance with the formatting and the title page, refer to https://writingcenter.ashford.edu/apa-formatting-word-2013.
- Must utilize academic voice. See the https://writingcenter.ashford.edu/academic-voice Resource for additional guidance.
- Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
- For assistance on writing https://writingcenter.ashford.edu/introductions-conclusions as well as https://writingcenter.ashford.edu/writing-a-thesis refer to the Ashford Writing Center resources.
- Must use at least five scholarly, peer-reviewed, and/or other credible sources in addition to the course text.
- The https://content.bridgepointeducation.com/curriculum/file/e5359309-7d3c-4a21-a410-44d59303ccef/1/Scholarly%20Peer-Reviewed%20and%20Other%20Credible%20Sources.pdf able offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
- Must document any information used from sources in APA style as outlined in the Ashford Writing Center’s https://writingcenter.ashford.edu/citing-within-your-paper
- Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center. See the https://writingcenter.ashford.edu/format-your-reference-list resource in the Ashford Writing Center for specifications.
The period 2007-2010 has seen the Federal Reserve use solutions which are unfamiliar to the central bank of the United States. Nevertheless the crisis of the United States which resulted from the events of the past was aided by some of the practices by the Federal Reserve. The following paper looks at some to the various happenings during these period, the contributions of the Federal Reserve and the government, the factors that caused the crisis, the alternative means of abating such crisis and it gives s advice based on a Keynesian approach about the various ways such crises can be prevented in the future.
Evaluate critically, as a classical or Keynesian economist, what caused the 2007 to 2009 financial crisis.
The 2007 resulted from trust between banks breaking down just before the 2008 global crisis.