A) What are the ultimate aims of monetary policy? How does it control interest rates?
B) What kinds of special programs has the FRB announced recently and why do some require cooperation with the Treasury? (Pick a few of the programs. There is absolutely no need to mention each one.) Are these programs in danger of igniting inflation?
C) Can the FRB prevent our debt from being a great burden?
Sources you should use:
Jeffrey Cheng, Dave Skidmore, and David Wessel ‘What’s the Fed doing in response to the COVID-19 crisis? What more could it do?’ Brookings Report, Thursday, April 30, 2020 Brookings https://www.brookings.edu/research/fed-response-to-covid19/
Economy.com notes that the FRB programs have has a different effect than in 2009.https://www-economy-com.ezproxy.depaul.edu/economicview/analysis/379639/Inflation-Today-Isnt-Always-a-Monetary-Phenomenon
Stephanie Kelton and Edward Chancellor, ‘Can governments afford the debts they are piling up to stabilize economies? Financial Times, May 3 2020 https://www.ft.com/content/53cb3f6a-895d-11ea-a109-483c62d17528
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