Federal Reserve Bank, economics homework help

Question description

 Since the beginning of the Great Recession, the Federal Reserve Bank has engaged in expansionary monetary policy (buying U.S. Treasury bonds) with the goal of promoting economic recovery. Most Americans think that when the Federal Reserve buys these securities, they must “get the money” from somewhere. Actually the Federal Reserve Bank has the perfect “money tree” because it is able to simply create “new money”. That means it doesn’t actually need to have “the money” when it purchases securities. The Federal Reserve simply writes a check or does a wire transfer to the seller of the security. Very often, this is the U.S. Treasury who has just created new bonds in the deficit! At this point there is newly created money. No Federal Reserve account with “money in it” somewhere is decreased as a result of the bond purchases.As children we were often reminded by parents, there is no money tree in the backyard. But that’s not true if you are the Federal Reserve Bank. So how do they do it? It is called “quantitative easing” or simply QE. Read the article and listen to the audio report below to learn more about QE. We will discuss our findings on the threads.The Fed Warms up the Printing Press Quantitative Easing, Explained In this week’s Discussion area, examine the following:If the money supply continues to expand what does that eventually imply about inflation?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more