Module 7 Monetary Policies in History

ECONversation

For this module week’s ECONversation, take a stroll in the past through a historical lens and look at times when monetary policy has worked and not worked.

Throughout history, when the U.S. economy has been in a recession, the Federal Reserve has used expansionary monetary policy to pull the economy out of a recession, and during the expansionary phase of the business cycle, the Federal Reserve will use contractionary monetary policy. During COVID-19, the Federal Reserve enacted an expansionary monetary policy from 2020 to 2022.

Now, let’s go back in history to the United States’ “Great Recession” in 2008-2009 and to the timeframe during the 1970s. In your initial post, identify the four monetary policy tools enacted by the Federal Reserve. Describe whether expansionary or contractionary monetary policy was enacted and why? Do you suppose contractionary monetary policy has failed to meet the objectives of stabilizing the economy to increase employment and stabilize price levels?

Refer to the interactive chart on 

Chair the Fed (Federal Reserve Bank of San Francisco).Links to an external site.

Support your post by incorporating concepts from this module week’s readings as well as any additional literature or personal experience. All references should be documented using the current APA style.

Post your initial post 
by the fourth day of the module week. Return 
by the sixth day of the module week to review your classmates’ posts. Reply to 
at least two of your classmates. 

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