Nobody downloaded yet

Federal Reserve and the Great Recession - Research Paper Example

Comments (0) Cite this document
Summary
The author of this paper "Federal Reserve and the Great Recession" explores the economic issues. According to the text, the great recession was a period of economic downturn that was characterized by liquidity-related issues. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER99% of users find it useful
Federal Reserve and the Great Recession
Read TextPreview

Extract of sample "Federal Reserve and the Great Recession"

Download file to see previous pages One of the major causes of the Great Recession was the bursting of the housing bubble. Being a regulator of the monetary system, the Federal Reserve could have seen a crisis coming. The major cause of the housing bubble bursting was that the Fed opted to expand their monetary policy; though the regulation was effectively done, this policy was a contributor to the problem. The Federal Reserve might have bowed to the pressure from the government to have the implementation of the housing policy be implemented. It happened that the dot-com crash was followed by a substantial increase in the printing press that resulted in an increase in the monetary base. Additionally, there was a great cut in the federal funds by Greenspan (from 5.6% in 2001 to 1% in 2003). These factors contributed to an increase in the housing among other investments that utilize huge amounts of capital. The Fed could have intervened at this point and develop a regulatory mechanism to prevent the situation from escalating to the financial crisis and ultimately the Great Recession. The Federal Reserve failed to develop adequate measures that would deal with the insolvency. Two institutions at the center of the Great Recession, Lehman Brothers, and Washington Mutual became insolvent resulting in their collapse. The Fed made a miscalculated attempt to go ahead and support these institutions instead of giving them a chance to fail, the outcome would have been an increase in the amount of savings as well as investments. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Federal Reserve and the Great Recession Research Paper”, n.d.)
Federal Reserve and the Great Recession Research Paper. Retrieved from https://studentshare.org/macro-microeconomics/1646583-research-paper
(Federal Reserve and the Great Recession Research Paper)
Federal Reserve and the Great Recession Research Paper. https://studentshare.org/macro-microeconomics/1646583-research-paper.
“Federal Reserve and the Great Recession Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1646583-research-paper.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Federal Reserve and the Great Recession

Federal Reserve Actions during the Great Depression in 1929 and 1930, and the Global Economic Recession of 2008 and 2009

...?Federal Reserve Actions during the Great Depression in 1929 and 1930, and the Global Economic Recession of 2008 and 2009 Introduction The global economy has changed in various periods in history. Changes in global economy are interesting since they affect different continents in the world. The main reason for this is due to the circulation of goods in different continents. Besides, effects of commerce are experienced on a global scale. Therefore, an economic slump in the US will also be faced in Europe and the Far East. There are two critical periods in history whereby the global economy has slumped markedly, affecting millions of people around the world. The first is...
14 Pages(3500 words)Essay

Federal Reserve

...?Need of Federal Reserve for the US: Justification The Federal Reserve System is the central banking structure of US. The Federal Reserve was established in 1913 with the need of a central financial system in the economy of US. The central banking system was set up under a situation of continuous financial panics in the economy of US. The structure, roles and the responsibilities of the Federal Reserve has undergone rapid changes over the years which have been mainly stimulated by the events like the Great Depression, Global Financial Crisis, etc. The structure of the...
5 Pages(1250 words)Essay

The Federal Reserve was effective/successful in its management of the 'Great Recession'

...?Federal Reserve Policy Evaluation in the Great Recession This paper has explored into the Great Global Recession of 2007. The reasons whichhad led to this Recession have been discussed in details. The main area of focus in this paper is to evaluate the policies taken by the Federal Reserve before and during the crisis. A close study has shown that the policies taken by the Federal Reserve were not successful enough to combat the financial crisis. The reasons for expressing this view have been dealt with and the logic for the negative notion has been...
10 Pages(2500 words)Essay

The Federal Reserve was effective/successful in its management of theGreat Recession

...The Federal Reserve was successful in its management of the “Great Recession" Introduction In times of economic strains such as depressions, countries usually undergo a lot of stress in the management of their fiscal and monetary accounts. It is quite imperative that one has appropriate measures that can cushion them against the harsh economic conditions such as those of the Great Depression. The United States of America was not any different or even spared by the Great Depression. The depression referred to in this context was that in which there was a severe economic depression worldwide at around the period that preceded the World War...
10 Pages(2500 words)Essay

Federal Reserve

...by issuing liquid assets, such as treasury bills. Tool 2. Proposed change by Fed when economy growing too quickly (10 points) 3. Proposed change by Fed in economic recession (10 points) Interest Rates Increase the Interest Rates Decrease the interest rates Open Market Op Sell Securities Buy Securities Funding Issue Illiquid Assets Issue Liquid Assets 4A) During the last year (2008), we witnessed a severe recession. In order to lubricate the economy towards growth many governments decided to reduce the interest rates in order to increase the aggregate demand and lead the economy towards growth. The graph in this site shows, how rapidly interest rates were decreased in Australia following this...
3 Pages(750 words)Essay

Federal Reserve

...The Federal Reserve The Federal Reserve is one of the chief operators of the United s financial system. Even as its function is of primary importance, most Americans are less familiar with the Federal Reserve than any of the major government entities. Indeed, its confusing structure, organization, and responsibilities make it difficult for most Americans to understand. In explaining the Federal Reserve, the New York Times describes it as having, “exercised more influence over economic growth and the level of employment than any other government entity.” (NYT, Web) The article argues that even as the...
2 Pages(500 words)Essay

Federal Reserve

...Federal Reserve Factors That Influence the Federal Reserve in Adjusting the Discount Rate The Federal Reserve adjusts to the discount rate depending upon whether they want to encourage or discourage borrowings. In an inflationary and burgeoning economy the Federal would raise the discount rate so that economy calms down and vice versa (About.Com 2012). The Discount Rate Affect the Decisions of Banks in Setting Their Specific Interest Rates Discount rate affects the banks in setting their specific interest rates because that is the interest rate that they pay to the Fed for their borrowings from them. If the discount rates...
1 Pages(250 words)Research Paper

How does the current financial crisis (Great Recession) compare with the Great Depression of the 1930's In this context, compare and contrast the role of the Federal Reserve. Compare the USA scenario and its policy response with at least one more co

...brothers (Robert 81). This paper seeks to expound on the Great Recession in, the role of the Federal Reserve in the issue and the US in response to the scenario. On the other hand, the Great Depression was a severe economic depression globally in the period before the World War II. The depression started around 1930 and went up to 1940s depending on the country (Romer 1). In the 20th century, the Great Depression was the longest and most widespread. The genesis of the depression can be traced in United States around 4th September 1929 after the fall of prices in stock. The historical economic slump covered most of the industrialized...
5 Pages(1250 words)Essay

Federal Reserve

...Federal Reserve Number: Introduction USA’s economy was faced by numerous issues/challenges during the spring (fromMarch up to May). Some of these challenges were inherited from the previous years particularly the famous 2008/2009 US economic crisis and federal reserves. However, by the beginning of 2012, the US economy was stable according to a report that was released by the Federal Reserve Bank of San Francisco on January 2012. The report was suggesting that the national economic activities were expanding at a modest rate with the economy characterized by high consumer spending habits, expansion of the manufacturing industry and growth...
2 Pages(500 words)Article

Federal reserve

...Yes. The Federal Reserve was effective/ successful in its management of the Great Recession. This research will analyze the Federal Reserve’s actions in response to the great financial recession of 2008. The study will show the action that Federal Reserve took during and after the recession to counter its effects. The arguments will show that it was successful in mitigating the impact of the recession. It will also evaluate the policies that Federal Reserve used to fix the recession to...
6 Pages(1500 words)Admission/Application Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Federal Reserve and the Great Recession for FREE!

Contact Us